Most money order sellers do not accept credit cards directly
You cannot walk into a Western Union, MoneyGram, or post office and hand over a credit card to buy a money order. The major money order providers — Western Union, MoneyGram, the U.S. Postal Service, and most banks — require payment in cash, debit card, or bank transfer. A few smaller outlets may accept credit cards, but this is rare and depends entirely on the individual location.
The reason is straightforward: money orders are a cash-equivalent product. They are meant to provide a may provide payment to someone else, and the seller needs when ready, irreversible payment from you. Credit cards create a delay and a reversal risk that money order sellers want to avoid. A debit card works because the money leaves your account right away, just like cash.
If you do not have cash or a debit card on hand, there are workarounds — but they add a step and sometimes a fee.
Key Takeaways
- Western Union, MoneyGram, the U.S. Postal Service, and most banks will not accept credit cards for money order purchases.
- You can use a debit card, cash, or a bank transfer at most money order locations.
- If you only have a credit card, you can withdraw cash using the card at an ATM, then use that cash to buy the money order.
- Some credit card issuers charge a cash advance fee for ATM withdrawals, so check your cardholder agreement before you withdraw.
- A few independent retailers or online services may accept credit cards, but you will pay a processing fee on top of the money order cost.
Why money order sellers require cash or debit
Money orders are designed to be safer than personal checks because they may provide the funds are there. When you buy one, the seller collects your payment when ready and guarantees the recipient will receive the full amount. If the seller accepted credit cards, they would have to wait for the credit card company to process the transaction — sometimes days — before they know the payment is real.
Credit cards also carry chargeback risk. A customer could dispute the charge weeks later, and the credit card company could reverse it. For a money order seller, that creates a liability: they already paid out the money order, but now they have lost the payment. Debit cards and cash do not have this problem because the money is gone from your account when ready and cannot be reversed.
This is why even online money order services — which might seem more flexible — typically require a bank account or debit card, not a credit card.
Using an ATM to convert your credit card to cash
The most direct workaround is to use your credit card at an ATM to withdraw cash, then use that cash to buy the money order. Most credit cards allow ATM withdrawals, though this is called a cash advance and it works differently from a debit card withdrawal.
When you take a cash advance on a credit card, the money is borrowed against your credit limit, just like a purchase. However, your credit card issuer usually charges a cash advance fee — typically 3 to 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. You also start paying interest on the cash advance when ready, often at a higher rate than your regular purchase APR. There is no grace period like there is for regular purchases.
Before you use an ATM with your credit card, call the number on the back of your card or check your online account to find out your cash advance fee and APR. For a small money order, the fee might cost more than the money order itself.
Buying a money order online with a credit card
A few online money order services will accept credit cards, but they charge a processing fee on top of the money order amount. MoneyGram and Western Union both offer online ordering, but they require a debit card or bank account for payment — not a credit card. However, some smaller third-party money order services do accept credit cards as a payment method.
If you use an online service that accepts credit cards, read the fee structure carefully. You may pay the money order fee, a credit card processing fee, and sometimes a delivery fee if the money order is being mailed. These fees can add 5 to 10 percent to the total cost. For a $500 money order, that could mean paying $25 to $50 in fees.
Online money order services also take longer than in-person purchases. Most deliver within 1 to 3 business days, so this option only works if you do not need the money order when ready.
Using a debit card instead
If you have a debit card linked to a bank account, use that instead of a credit card. Debit cards are accepted everywhere that sells money orders — Western Union, MoneyGram, the post office, banks, and most grocery stores and pharmacies. The transaction is when ready, there are no extra fees, and the money leaves your account right away.
If you do not have a debit card but have a bank account, you can visit your bank and ask for a temporary debit card, or you can withdraw cash from a teller and use that cash to buy the money order. Many banks issue debit cards on the spot or within a few business days at no cost.
Money order fees and where to buy
Money order costs vary by location and the amount you are sending. The U.S. Postal Service charges between $1.45 and $3.65 depending on the amount. Western Union and MoneyGram typically charge $1 to $5 for domestic money orders, though fees are higher for larger amounts or international transfers. Banks often charge $5 to $10 per money order. Grocery stores and pharmacies that offer money orders through Western Union or MoneyGram usually charge $1 to $3.
The cheapest option is usually the post office or a grocery store. The most expensive is typically a bank. If you are sending money regularly, the difference adds up — a bank money order costs 3 to 5 times more than a post office money order.
All of these locations accept cash and debit cards. None accept credit cards directly. If you are shopping around for the lowest fee, call ahead or check the website to confirm the current price at each location near you.
Frequently Asked Questions
Can I use a credit card to buy a money order online?
Most major online money order services require a debit card or bank account. A few smaller services accept credit cards, but they charge a processing fee on top of the money order cost. Check the payment methods listed on the website before you start the order.
What happens if I take a cash advance on my credit card to buy a money order?
You will pay a cash advance fee (usually 3 to 5 percent) and start accruing interest when ready at a higher rate than regular purchases. For a small money order, the fee alone might exceed the cost of the money order. Check your cardholder agreement for the exact fee and APR before you withdraw.
Is there a money order service that accepts credit cards without extra fees?
Not for in-person purchases. Western Union, MoneyGram, the post office, and banks all require cash or debit. Some online services accept credit cards, but they add a processing fee to cover the credit card company's charges.
Can I use a prepaid credit card to buy a money order?
Most prepaid cards function like debit cards and may be accepted at some money order locations, though policies vary. Call the money order seller or check their website to confirm they accept your specific prepaid card before you go in.
What is the cheapest way to buy a money order?
The U.S. Postal Service and grocery stores offering Western Union or MoneyGram services charge the lowest fees — usually $1 to $3. Banks charge the most, typically $5 to $10. All accept cash and debit cards.