Most places won't let you buy a money order with a credit card, and the few that do treat it as a cash advance
You cannot use a credit card directly to purchase a money order at most retailers and banks. Money order sellers — including post offices, grocery stores, and check-cashing services — accept cash, debit cards, and sometimes traveler's checks, but they classify credit card transactions as cash advances rather than purchases. A cash advance means you pay an upfront fee (usually 3 to 5 percent of the amount) plus interest that starts accruing when ready, with no grace period.
The reason is straightforward: money orders are already a form of payment that converts your money into a may provide instrument. Allowing credit card purchases would let you borrow against a may provide payment, which creates risk for both the seller and your credit card company. A few money order providers, including some online services, do accept credit cards, but they charge the cash advance fee regardless.
Key Takeaways
- Most money order sellers do not accept credit cards at all; those that do charge a cash advance fee of 3 to 5 percent plus when ready interest.
- A cash advance for a money order costs more than paying with cash or a debit card and damages your credit utilization ratio.
- Paying with a debit card, bank transfer, or cash avoids the fee and interest entirely.
- If you need a money order and have no cash or debit card, a personal loan or credit card cash advance at an ATM is cheaper than using the credit card at the money order counter.
Where you can and cannot use a credit card
The U.S. Postal Service does not accept credit cards for money orders at all. You must pay with cash, a debit card, or a traveler's check. Western Union, which sells money orders at thousands of retail locations, also does not accept credit cards at the point of sale, though you can order money orders online and pay with a credit card — but that transaction is still processed as a cash advance.
MoneyGram, another major money order network, has the same policy: no credit cards in-store. However, some independent check-cashing services and small retailers may accept credit cards and straightforward process them as purchases rather than cash advances. This is rare and depends entirely on the individual business. Before you go to a money order counter, call ahead and ask whether they accept credit cards and, if so, whether it will be treated as a purchase or a cash advance.
Why cash advances cost more than regular purchases
When you use a credit card as a cash advance — whether at an ATM, a bank teller, or a money order counter — your card issuer charges you a fee upfront. This fee is typically 3 to 5 percent of the amount, though some cards charge a flat fee instead. On a $500 money order, that is $15 to $25 before you even leave the counter.
Unlike a regular purchase, a cash advance does not get a grace period. Interest starts accruing the day you make the transaction, usually at a higher rate than your purchase APR. If your card charges 18 percent APR on purchases, the cash advance APR might be 25 percent. On a $500 advance, that is roughly $10 in interest per month if you carry the balance. Over six months, the cash advance fee plus interest could total $45 to $60 — far more than the $1 to $3 you would pay for a money order itself.
Cheaper alternatives if you don't have cash or a debit card
If you need a money order but have no cash or debit card, several options cost less than a credit card cash advance. The simplest is to withdraw cash from an ATM using your credit card, then use that cash to buy the money order. Yes, this is also a cash advance and carries the same fee and interest, but you avoid paying the money order seller's processing fee on top of it.
A better option is a personal loan from a bank, credit union, or online lender. Personal loans charge interest but no upfront fee, and the interest rate is usually lower than a credit card cash advance rate. If you need the money order urgently, a credit union may approve a small personal loan the same day. A bank transfer from a savings account at another bank, if you have one, costs nothing and takes one to three business days.
If you have a friend or family member who can lend you cash, that is the cheapest route. You repay them in full with no fees or interest.
How credit card cash advances affect your credit score
Using a credit card as a cash advance raises your credit utilization ratio — the percentage of your available credit you are using. If your card has a $5,000 limit and you take a $500 cash advance, your utilization jumps to 10 percent. Credit scoring models treat cash advances the same as purchases when calculating utilization, so this can lower your score by a few points, especially if your utilization was already high.
The damage is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. However, if you carry the balance and pay interest, the score impact lasts as long as the balance does. For a one-time money order, the score hit is usually minor and brief, but it is worth knowing if you are trying to keep your score high for a mortgage or loan process.
When a money order makes sense versus other payment methods
A money order is useful when the recipient needs a may provide payment but you do not have a check or cannot send a bank transfer. Landlords, government agencies, and some businesses still require money orders. However, before you buy one with a credit card, consider whether the recipient would accept a different payment method. Many landlords now accept bank transfers or online bill pay. Government agencies often accept credit cards directly on their websites. Asking first might save you the money order fee entirely.
If a money order is truly necessary and you have a credit card but no cash or debit card, the lowest-cost path is usually to withdraw cash from an ATM with your credit card, then buy the money order with cash. This costs you one cash advance fee instead of two. If the amount is large enough that the fee stings, a personal loan or asking to borrow cash from someone you know will cost less.
Frequently Asked Questions
Will the money order seller tell me if it's a cash advance?
Not always. Some sellers process it as a cash advance without mentioning it to you. Your credit card statement will show it as a cash advance, and you will see the fee. If you are unsure, ask the seller before you hand over your card: "Will this be processed as a purchase or a cash advance?" Their answer tells you whether to proceed.
Can I use a prepaid credit card to buy a money order?
It depends on the prepaid card. Some prepaid cards are branded as Visa or Mastercard and work like debit cards at money order counters. Others are restricted and cannot be used for money orders. Check your prepaid card's terms or call the customer service number on the back before you go to buy a money order.
What if I need a money order right now and have no other way to pay?
Use your credit card as a cash advance at an ATM, then buy the money order with the cash. This costs one fee instead of two. If the ATM fee plus the cash advance fee is still too high, ask the money order seller if they offer a payment plan or if you can return the next day with cash or a debit card.
Does using a credit card for a money order hurt my credit score permanently?
No. The impact is temporary and comes from the increase in your credit utilization ratio. Once you pay off the cash advance, your utilization drops and your score recovers within a few months. The damage is usually small — a few points — unless your utilization was already very high.