Most credit card issuers do not let you buy money orders directly
You cannot walk into a store, hand over your credit card, and buy a money order the way you would buy groceries. Money order sellers — post offices, grocery stores, check-cashing shops, and convenience stores — treat money orders as cash equivalents. They accept debit cards, cash, and sometimes prepaid cards, but most do not accept standard credit cards at the point of sale.
The reason is straightforward: a money order is a may provide payment instrument, and the seller assumes the risk if the card is fraudulent or the charge is reversed. Credit card companies also discourage this because they classify money orders as a cash advance, which carries higher fees and interest rates than regular purchases.
Some credit card issuers will block the transaction outright. Others will process it but charge you a cash advance fee — typically 3 to 5 percent of the amount, plus interest that starts accruing immediately, not at the end of your billing cycle like a regular purchase.
Key Takeaways
- Money order sellers almost never accept credit cards at checkout, so you will need cash, a debit card, or a prepaid card instead.
- If a credit card issuer does allow a money order purchase, they classify it as a cash advance and charge a fee plus immediate interest.
- You can use a credit card to withdraw cash from an ATM, then use that cash to buy a money order, but you will pay both a cash advance fee and ATM fees.
- Some prepaid cards and certain debit cards work at money order counters and avoid the cash advance penalties that come with credit cards.
Why money order sellers reject credit cards
Money order companies operate under strict regulations because they handle funds that are supposed to be may provide. When you buy a money order, the seller collects your money and issues a receipt. If someone later disputes the transaction or claims fraud, the seller is on the hook to investigate and potentially refund the money order amount.
A credit card transaction can be reversed up to 120 days after purchase in some cases. A money order, once sold, is meant to be final. This mismatch creates liability that most sellers will not accept. They want payment methods that cannot be reversed — cash, debit cards, or prepaid cards that draw from money already in an account.
Post offices, which are federal facilities, have their own rules. The U.S. Postal Service does not accept credit cards for money orders at most locations, though some postal facilities may accept them for other services. Your best bet is to call ahead or check the USPS website for your local branch.
What happens if your credit card issuer allows it
Some credit card companies do permit money order purchases, but they treat the transaction as a cash advance rather than a regular purchase. This distinction matters because cash advances come with penalties that regular purchases do not.
A cash advance fee is usually 3 to 5 percent of the amount you withdraw or purchase, with a minimum fee of $5 to $10. On a $500 money order, that could be $15 to $25 in fees alone. Interest on the cash advance starts accruing the day of the transaction — there is no grace period like there is for regular credit card purchases. The interest rate on cash advances is often higher than your standard purchase rate.
To know whether your card issuer allows money order purchases and what they charge, call the customer service number on the back of your card or log into your online account. Some issuers list cash advance policies in their terms and conditions. Others will only tell you if you ask directly.
Using an ATM to get cash for a money order
If you need a money order and only have a credit card, you can withdraw cash from an ATM using your credit card, then use that cash to buy the money order. This route works, but it stacks fees on top of each other.
You will pay a cash advance fee from your credit card issuer (3 to 5 percent), an ATM fee from the ATM operator (usually $2 to $3), and possibly a fee from your credit card issuer for using an out-of-network ATM (another $1 to $3). On a $500 withdrawal, you could pay $20 to $40 in fees before you even buy the money order.
This approach only makes sense if you have no other payment method available and the money order is urgent. Otherwise, borrowing cash from a friend, using a debit card, or waiting until you have cash on hand will cost you far less.
Debit cards and prepaid cards as alternatives
A debit card linked to a bank account works at almost every money order counter. The transaction is treated as a direct withdrawal from your account, not a loan, so there are no cash advance fees or interest charges. This is the cheapest way to buy a money order if you have a bank account.
A prepaid card — sometimes called a reloadable prepaid debit card — also works at money order counters. You load money onto the card in advance, and when you buy a money order, the funds come directly from the card's balance. Prepaid cards do not require a bank account and do not involve credit, so there are no advance fees.
If you do not have a debit card or prepaid card, you can open a basic checking account at most banks or credit unions with minimal requirements. Some banks offer accounts with no monthly fee and no minimum balance. This gives you access to a debit card and is usually faster and cheaper than relying on credit card cash advances.
Money order sellers and their payment policies
Different sellers have different rules about what they accept. Here is what you are likely to encounter:
- U.S. Post Office: Cash and debit cards at most locations; call ahead to confirm your branch accepts debit cards.
- Walmart: Cash and debit cards; does not accept credit cards for money orders.
- Check-cashing stores: Usually accept cash, debit cards, and sometimes prepaid cards; policies vary by location.
- Grocery stores: Most accept cash and debit cards; some accept prepaid cards; credit cards are rarely accepted.
- Convenience stores: Policies vary widely; call ahead if you plan to use a debit or prepaid card.
If you are unsure whether a specific seller will accept your card, call them before you go. This saves a trip and prevents the frustration of arriving without the right payment method.
Frequently Asked Questions
Can I use a credit card to buy a money order online?
Some online money order services do accept credit cards, but they charge the same cash advance fees and interest that in-person sellers do. Online services also add processing fees on top of that. For most people, buying a money order in person with cash or a debit card is cheaper and faster.
What if I need a money order but have no cash or debit card?
Your options are to withdraw cash from an ATM using your credit card (and pay the fees), borrow cash from someone else, or wait until you have cash or access to a debit card. If the money order is for an urgent bill or payment, contact the recipient to see if they accept other payment methods like bank transfer or check.
Do prepaid cards work everywhere money orders are sold?
Most prepaid cards work at major sellers like the post office and Walmart, but some smaller stores or check-cashing shops may not accept them. Call ahead to confirm. Prepaid cards that are Visa or Mastercard branded have wider acceptance than store-specific prepaid cards.
Will buying a money order with a credit card hurt my credit score?
A money order purchase itself does not directly hurt your score, but if it is classified as a cash advance and you carry a balance, the interest charges and higher utilization ratio can affect your score over time. The bigger risk is that cash advances encourage spending beyond your means.
Is there a limit to how much I can spend on a money order?
Most money order sellers cap individual money orders at $1,000, though some post offices allow up to $1,000 and some stores allow less. If you need to send more than $1,000, you can buy multiple money orders. There is no limit to how many you can purchase in one transaction, but you will pay a fee for each one.