Most credit card companies will not let you buy a money order with a credit card directly, but you have workarounds

You cannot walk into a store and hand a cashier your credit card to buy a money order the way you would buy groceries. Money order sellers — banks, post offices, grocery stores, check-cashing outlets — treat money orders as cash equivalents and will not accept credit cards for them. The reason is simple: a money order is a may provide payment, and the seller needs actual money in hand before they issue it.

What you can do instead is use your credit card to get cash, then use that cash to buy the money order. The most common method is a cash advance from an ATM using your credit card, though this comes with fees and higher interest rates than regular purchases. A second option is to transfer money from a credit card to a bank account (if your card issuer allows it), then withdraw cash and buy the money order. Each route has different costs and timing.

Key Takeaways

  • Credit card companies do not allow direct purchases of money orders because money orders are treated as cash equivalents.
  • A cash advance from an ATM using your credit card is the fastest way to get cash for a money order, but it charges a fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases.
  • Some credit card issuers allow balance transfers to a bank account, which you can then withdraw as cash, though this also carries fees.
  • Using a debit card, bank account, or cash directly to buy a money order avoids credit card fees and interest charges entirely.

How a cash advance works and what it costs

A cash advance is a short-term loan from your credit card issuer. You go to an ATM, insert your credit card, enter your PIN, and withdraw cash. The amount you withdraw appears on your credit card bill as a separate charge from regular purchases.

Cash advances charge two costs upfront. First, there is a cash advance fee, which most card issuers set between 3 and 5 percent of the amount you withdraw — so a $200 cash advance might cost $6 to $10 just to get the money. Second, cash advances start accruing interest immediately, with no grace period like regular purchases have. The interest rate for cash advances is usually higher than your regular purchase APR, often 2 to 3 percentage points higher. If you carry the balance for a month, the interest adds up quickly.

Example: You withdraw $200 as a cash advance. Your card charges a $6 fee (3 percent) and an APR of 24 percent on cash advances. If you pay it back in one month, you owe roughly $200 + $6 + $4 in interest = $210. If you pay it back in three months, interest alone could reach $12 to $15.

Balance transfers to a bank account as an alternative

Some credit card issuers allow you to transfer money from your credit card directly into a linked bank account. This is different from a cash advance — the money lands in your checking or savings account, and you can then withdraw it as cash or write a check. Not all card issuers offer this, so you will need to contact yours to ask.

Balance transfers to a bank account also charge a fee, usually 3 to 5 percent, and interest begins accruing immediately just as with a cash advance. The advantage is that the money arrives in your bank account within one to three business days, giving you time to decide when to withdraw it. The disadvantage is that you still pay the same fees and interest, so the total cost is similar to a cash advance.

Why money order sellers reject credit cards

Money order sellers will not accept credit cards because they need may provide payment before they hand over the money order. A credit card transaction can be disputed, reversed, or declined days or weeks later. A money order, once issued, is a may provide payment — the seller has already committed their own funds. Accepting a credit card would leave them exposed to chargebacks and fraud.

The same rule applies to other cash equivalents: you cannot buy gift cards, prepaid cards, or wire transfer services with a credit card at most retailers. Some online services do allow credit card purchases of gift cards or prepaid cards, but they charge higher fees to cover the risk.

Cheaper ways to get cash for a money order

If you have a bank account, the simplest option is to withdraw cash directly from your checking or savings account using your debit card or at an ATM. This costs nothing and takes seconds. If you do not have a bank account, a check-cashing service will cash a paycheck or government check for a fee (usually 1 to 3 percent), and you can use that cash to buy a money order.

If you have a friend or family member who can lend you cash temporarily, you can pay them back with your credit card later using a peer-to-peer payment app like Venmo or PayPal. This avoids the cash advance fee entirely, though you should only do this if you can repay them quickly.

Some employers offer paycheck advances or early pay options, which deposit your earnings into your account a few days early. If this is available to you, it is a zero-cost way to access cash for a money order without using a credit card at all.

What to know before taking a cash advance

A cash advance should be a last resort, not a regular way to get cash. The fees and interest add up fast, and if you cannot pay back the full amount quickly, the debt grows. Before you take a cash advance, ask yourself whether you actually need a money order or whether another payment method would work.

Many bills and payments that traditionally required money orders now accept online payments, checks, or ACH transfers directly from a bank account. If you are paying rent, a utility bill, or a court fine, contact the recipient first to ask what payment methods they accept. You may not need a money order at all.

If you do need a money order and do not have cash or a bank account, a cash advance is faster than waiting for a paycheck or loan. Just understand the cost: a $200 cash advance might cost $12 to $20 in fees and interest over a month, which is money you will not have for other things.

Frequently Asked Questions

Can I use a credit card to buy a money order online?

Most online money order services also do not accept credit cards directly. Services like MoneyGram and Western Union require a debit card, bank account, or cash. Some online bill-pay services let you send money directly to a payee without a money order, which may be faster and cheaper than buying a money order at all.

Will taking a cash advance hurt my credit score?

A cash advance itself does not directly hurt your credit score, but it increases your credit utilization (the amount of your credit limit you are using), which can lower your score slightly. If you carry the balance and miss payments, that will damage your score. Paying back the cash advance in full within a month or two minimizes the impact.

What if my credit card does not have a PIN for ATM withdrawals?

You can request a PIN from your credit card issuer by calling the number on the back of your card or logging into your online account. It usually takes one to three business days to set up. Some issuers also allow you to use your debit card PIN if you have one, but you should confirm with your issuer first.

Is there a limit to how much I can withdraw as a cash advance?

Yes. Your credit card issuer sets a cash advance limit, which is often lower than your overall credit limit — sometimes 20 to 50 percent of your credit limit. You can find your cash advance limit in your account details online or by calling your card issuer. If you need more cash than your limit allows, you will have to wait until you pay down the balance.