Yes, you can use a credit card to buy a money order, but most sellers won't let you
Most places that sell money orders — banks, post offices, grocery stores, check-cashing services — do not take credit cards as payment. They accept cash, debit cards, and sometimes traveler's checks. A few retailers like Walmart and some grocery chains will let you use a credit card at the register, but the money order itself still comes out of your account or cash. The reason is straightforward: money orders are meant to be a may provide payment method, and sellers want to avoid the risk of a credit card dispute later.
If you do find a place that accepts a credit card for a money order, you are paying a fee on top of the money order fee — typically 2 to 3 percent of the transaction. That means a $500 money order could cost you $10 to $15 just in credit card processing fees, plus the $1 to $2 money order fee itself. For most people, this is not worth it.
Key Takeaways
- Banks, the post office, and most check-cashing services do not accept credit cards to buy money orders; they require cash or a debit card.
- Some large retailers like Walmart may accept credit cards at checkout, but the money order is still purchased with cash or debit from your account.
- If a seller does accept a credit card for a money order, you will pay an extra 2 to 3 percent processing fee on top of the standard money order fee.
- Using a credit card to fund a money order counts as a cash advance on most cards, which means higher interest rates and when ready fees.
Why most money order sellers reject credit cards
Money orders are designed to be a low-risk payment for the recipient. Once issued, they are difficult to reverse or dispute. If you pay with a credit card and then dispute the charge with your card issuer, the money order has already been sent and cashed. The seller is left holding the loss.
Banks and post offices have strict policies against credit card purchases for this reason. They treat money orders the same way they treat cash withdrawals — as a transfer of funds out of your account, not a purchase of goods. Your debit card works because the money comes directly from your checking account, which is what the seller expects.
Where you might find credit card acceptance
Walmart and some grocery store chains (including Kroger, Safeway, and others) will sometimes let you buy a money order with a credit card at the register. However, this varies by location and by the individual cashier's knowledge of the policy. Call ahead to confirm before you go.
Online money order services are another option. Companies like MoneyGram and Western Union offer money orders through their websites, and some do accept credit cards. However, they charge significantly more than in-person purchases — often $5 to $10 per money order instead of $1 to $2 — and the credit card fee is added on top.
The cash advance trap
Even if a seller accepts your credit card for a money order, your card issuer may classify it as a cash advance rather than a regular purchase. Cash advances carry their own fees — typically 3 to 5 percent of the amount — and they start accruing interest when ready, with no grace period. A regular purchase might give you 21 days interest-free; a cash advance starts charging interest the day you make it.
Check your card's terms before attempting this. Some cards explicitly forbid cash advances for money orders. Others allow it but charge so much that it defeats the purpose of using a credit card in the first place.
Better alternatives if you do not have cash or a debit card
If you need a money order but only have a credit card, your best option is to use the card to withdraw cash from an ATM, then use that cash to buy the money order. Yes, you will pay an ATM fee (usually $2 to $3), but this is cheaper than the credit card processing fee plus money order fee you would pay otherwise. The ATM withdrawal also avoids the cash advance classification, so you will not face the higher interest rate.
Another option is to ask the money order seller if they accept payment plans or if they can hold the money order while you go get cash. Some check-cashing services and smaller retailers will do this, especially if you are a regular customer.
If the money order is urgent and you truly cannot get cash, a wire transfer through your bank might be faster and cheaper than a money order anyway. Wire transfers cost $15 to $30, but they are when ready and do not require a physical document to be mailed.
What to do if you are considering a credit card money order
Before you attempt to buy a money order with a credit card, call the specific location where you plan to buy it. Ask directly: "Do you accept credit cards for money order purchases?" Do not assume based on what you read online, because policies vary by location and change over time.
If they say yes, ask whether your card will be charged a processing fee and whether it will be classified as a cash advance. Get the total cost in writing if possible. Then compare that total to the cost of withdrawing cash from an ATM and buying the money order with cash. In most cases, the ATM route will be cheaper.
Frequently Asked Questions
Will my credit card company let me buy a money order?
Your card issuer may allow it, but they might classify it as a cash advance, which means higher fees and when ready interest charges. Check your card's terms or call your issuer before you try. Some cards explicitly block money order purchases.
Can I use a credit card at the post office to buy a money order?
No. The post office does not accept credit cards for money order purchases. You must pay with cash, a debit card, or a traveler's check. Some post offices have ATMs on-site if you need to withdraw cash first.
What if I use a credit card and the money order gets lost in the mail?
You can file a claim with the issuer (the post office, bank, or other seller) to get a replacement or refund. However, if your credit card company classified the purchase as a cash advance, you may still owe the interest that accrued while the claim was being processed.
Is it cheaper to use a credit card or withdraw cash from an ATM?
In almost all cases, withdrawing cash from an ATM is cheaper. An ATM fee is typically $2 to $3. A credit card processing fee for a money order is usually 2 to 3 percent of the amount, plus the money order fee itself, plus potential cash advance interest. The math favors the ATM.
Can I use a prepaid credit card to buy a money order?
Some prepaid cards work like debit cards and may be accepted at money order sellers. Others are treated as credit cards and face the same restrictions. Check with your prepaid card issuer and the money order seller before you try.