Most money order sellers will not take a credit card directly
You cannot buy a money order with a credit card at most places that sell them. Western Union, MoneyGram, the U.S. Postal Service, and most banks and grocery stores require cash, a debit card, or a bank account transfer. A credit card is treated as a cash advance by these sellers, which means the transaction fee is higher and the card issuer may decline it.
The reason is straightforward: money orders are a way to send cash without sending cash. The seller needs to know the money is actually there. A credit card is a promise to pay later, not money in hand. Sellers also avoid credit cards because the transaction fees cut into their margin on an already thin product.
If you have a credit card but no cash or debit card, you have a few paths forward, but none are direct.
Key Takeaways
- Western Union, MoneyGram, the USPS, banks, and grocery stores do not accept credit cards for money order purchases.
- A credit card transaction at a money order seller is usually treated as a cash advance, which carries a higher fee and may be declined by your card issuer.
- You can withdraw cash from an ATM using your credit card, then use that cash to buy a money order, but you will pay an ATM fee plus a cash advance fee.
- Some credit card issuers allow balance transfers to a bank account, which you can then use to buy a money order without the cash advance fee.
- A debit card or bank account transfer is the lowest-cost way to buy a money order if you have either one available.
Why credit card companies treat money order purchases as cash advances
When you use a credit card to buy a money order, your card issuer sees it as a cash advance, not a purchase. A cash advance is borrowing money against your credit line, similar to withdrawing cash from an ATM. This classification triggers two when ready costs: a cash advance fee (usually 3 to 5 percent of the amount) and a higher interest rate that starts accruing when ready, with no grace period.
A regular purchase on a credit card often comes with a grace period — usually 21 to 25 days before interest starts. A cash advance has no grace period. Interest begins the day the transaction posts. For a $500 money order bought as a cash advance at a 5 percent fee plus 25 percent APR, you would owe $25 in fees plus daily interest from day one.
Money order sellers also decline credit cards because the payment processor charges them a higher rate for credit transactions than for debit or cash. On a product with a thin margin — money orders typically cost $1 to $5 — that processor fee can wipe out their profit.
Using an ATM to get cash, then buying the money order
If you need a money order and only have a credit card, the most direct route is to withdraw cash from an ATM using your credit card, then use that cash to buy the money order. This works, but it costs money at each step.
First, you pay an ATM fee. If you use an ATM outside your card issuer's network, the fee is typically $2 to $3. Your card issuer may also charge its own fee for a cash advance, usually $5 to $10 or a percentage of the amount (whichever is higher). Then you pay the money order fee itself, which ranges from $1 to $5 depending on the amount and the seller.
For a $500 money order, you might pay $3 for the ATM, $10 for the card issuer's cash advance fee, and $2 for the money order itself — a total of $15 in fees before interest starts accruing. This is expensive, but it works if you have no other option.
Balance transfers as an alternative to cash advances
Some credit card issuers allow you to transfer your credit line balance directly to a bank account. This is called a balance transfer to a bank account, and it is different from a standard balance transfer between credit cards. If your card issuer offers this, you can transfer money to your bank account, then use your debit card or account to buy the money order.
A balance transfer to a bank account usually costs 3 to 5 percent, similar to a cash advance fee, but it may have a lower interest rate or a promotional period with no interest. Check your card's terms or call the issuer to see if this option is available and what the terms are. It is worth comparing to the ATM route if the promotional rate is zero percent for a set period.
This option only works if you have a bank account and your card issuer supports it. Not all do. Call before you count on it.
Debit cards and bank transfers are the lowest-cost option
If you have a debit card, use it instead of a credit card. Debit cards are accepted at all major money order sellers — Western Union, MoneyGram, the USPS, banks, and grocery stores. You pay only the money order fee itself, with no cash advance fee or interest.
If you do not have a debit card but have a bank account, many sellers accept direct bank transfers or ACH payments. The USPS and some Western Union locations can take a transfer directly from your checking account. MoneyGram also accepts bank transfers at some locations. Call ahead or check the seller's website to confirm they accept transfers, and ask whether there is a fee.
A bank transfer is often free or costs less than a money order fee, making it the cheapest way to send money if the recipient can wait a day or two for the transfer to clear.
When you might have no choice but to use a credit card
Some situations leave you with only a credit card: you are traveling and left your debit card at home, your bank account is frozen, or you are using a credit card as your only form of payment. In these cases, the ATM-to-cash route is usually your only option, even though it costs more.
Before you go to the ATM, call your credit card issuer and ask whether they will decline the cash advance. Some cards have cash advance limits that are lower than your credit limit, or they may decline cash advances altogether if you have not used that feature before. Knowing this in advance saves you a failed transaction at the ATM.
If your card issuer declines cash advances, you may be able to buy a money order online through a service like MoneyGram or Western Union, which sometimes accept credit cards for online orders. The fee will still be high, but it avoids the ATM step. Check the seller's website for their payment methods before you assume it is not possible.
Comparing the total cost of each method
| Method | Typical Fees | When to Use It |
|---|---|---|
| Debit card | $1–$5 (money order fee only) | You have a debit card. This is the cheapest option. |
| Bank transfer | $0–$3 (often free) | You have a bank account and the recipient can wait 1–2 days. |
| Credit card ATM withdrawal | $3–$15 (ATM fee + cash advance fee + money order fee) | You have only a credit card and need cash when ready. |
| Credit card balance transfer to bank | 3–5% (promotional rate may be lower) | Your card issuer offers this and has a zero-interest promotional period. |
| Credit card online purchase | 3–5% (cash advance fee) + money order fee | You cannot reach a physical seller and need to order online. |
Frequently Asked Questions
Will Western Union or MoneyGram take my credit card if I go in person?
No. Both require cash, a debit card, or a bank account transfer. Some Western Union locations accept credit cards for online orders only, not in-person purchases. Call the location first to confirm what they accept.
Can I buy a money order online with a credit card?
Some online money order services accept credit cards, but they charge a cash advance fee (usually 3 to 5 percent) on top of the money order fee. This is more expensive than buying in person with cash or a debit card, but it may be your only option if you cannot reach a physical seller.
What is the difference between a cash advance fee and a purchase fee?
A cash advance fee is charged when you borrow money against your credit line (like withdrawing cash or buying a money order). It is usually 3 to 5 percent. A purchase fee is charged on regular purchases and is typically lower or zero. Money order sellers classify credit card purchases as cash advances, so you pay the higher fee.
If I use my credit card at an ATM, will the money order seller know?
No. Once you have cash in hand, the money order seller sees only cash, not where it came from. However, your credit card issuer will know you took a cash advance, and they will charge you accordingly.
Is there a way to avoid the cash advance fee?
Yes, if your card issuer offers balance transfers to a bank account with a zero-interest promotional period. You transfer money to your bank account, then use your debit card or account to buy the money order. This avoids the cash advance fee, but you still pay the balance transfer fee (usually 3 to 5 percent) unless the issuer waives it during the promotional period.