Most money order sellers won't take credit cards directly
You cannot buy a money order with a credit card at most locations. Banks, post offices, grocery stores, and check-cashing services typically require cash or a debit card. A few online money order services accept credit cards, but they charge extra fees that make this option expensive compared to paying cash.
The reason is straightforward: money orders are meant to be a low-cost way to send money, and accepting credit cards would add processing fees that the seller would have to absorb or pass along. Most brick-and-mortar locations have decided it is not worth the cost.
Key Takeaways
- Post offices, banks, and grocery stores that sell money orders accept cash or debit cards, but not credit cards.
- A few online money order services accept credit cards, but charge 3 to 5 percent fees on top of the money order cost.
- If you do not have cash or a debit card, using a credit card to get cash from an ATM or bank teller, then buying the money order, is usually cheaper than online services.
- Some credit card companies charge a cash advance fee (typically 3 to 5 percent) for ATM withdrawals, so check your card's terms first.
Where you can and cannot use a credit card
In-person locations — Post offices, banks, Walmart, grocery stores, and check-cashing shops do not accept credit cards for money orders. They accept cash and debit cards. A few locations may accept prepaid cards that are linked to a bank account, but policies vary by store.
Online money order services — Companies like MoneyGram and Western Union offer online money order purchases and do accept credit cards. However, they charge a processing fee on top of the money order fee itself. These fees typically run 3 to 5 percent of the money order amount, which can add $3 to $15 or more depending on the size.
Mobile payment apps — Some apps like Walmart2Walmart or PayPal allow you to send money directly to another person's account without a physical money order. These may accept credit cards, but they are not the same as a traditional money order and work differently depending on where the recipient banks.
Why credit card fees make this expensive
If you use an online service that accepts credit cards, you pay two separate charges: the money order fee (usually $1 to $5) plus the credit card processing fee (3 to 5 percent). On a $500 money order, that processing fee alone could be $15 to $25.
Your credit card company may also charge a cash advance fee if you withdraw cash from an ATM to buy a money order in person. This fee is typically 3 to 5 percent of the amount withdrawn, plus a higher interest rate that starts accruing immediately. Check your card's terms to see if this applies to you.
The cheapest route is almost always to pay cash or use a debit card at a post office or bank, where the money order fee is $1 to $3 with no additional charges.
Alternatives if you do not have cash or a debit card
If you need a money order but only have a credit card, consider these options in order of cost:
- Withdraw cash from an ATM using your credit card. Check whether your card charges a cash advance fee first. If it does not, this is usually the cheapest option. You then buy the money order with cash at a post office or bank.
- Ask your bank or credit union for a cash advance. Some banks will give you cash over the counter without charging a fee, especially if you are a customer. Call ahead to confirm.
- Use an online money order service. If you cannot get cash any other way, MoneyGram or Western Union online will accept your credit card, but budget for the 3 to 5 percent processing fee on top of the money order cost.
- Send money by another method. If the recipient can accept it, a bank transfer, wire transfer, or peer-to-peer payment app may be faster and cheaper than a money order.
What to check before you try to buy online
If you decide to use an online money order service, read the fine print carefully. Some services charge different fees depending on how fast you need the money order delivered, and some have limits on how much you can send in a single transaction.
Verify that the service is legitimate before entering your credit card information. Stick to well-known companies like MoneyGram, Western Union, or your own bank's money order service if they offer it online. Scams targeting people who need money orders do exist.
Also check whether the recipient can actually cash the money order they receive. Online money orders sometimes come as digital documents that need to be printed, and not all recipients are comfortable with that process.
Frequently Asked Questions
Can I use a prepaid credit card to buy a money order?
Some prepaid cards work like debit cards and are accepted at post offices and banks, but others are treated as credit cards and are declined. Call the prepaid card company or check your card's terms to find out which type you have. If it is declined at a post office, you can use it to withdraw cash from an ATM instead.
Does using a credit card to buy a money order build credit?
No. Money order purchases do not show up on your credit report or affect your credit score, regardless of how you pay for them. The transaction is treated as a purchase, not a line of credit.
What if I need a money order urgently and only have a credit card?
An online money order service is your fastest option, though you will pay the processing fee. Some services deliver within hours. If you can wait until the next business day, withdrawing cash from an ATM and buying a money order in person is much cheaper.
Can I use a credit card to buy a money order at Walmart?
No. Walmart's money order service only accepts cash and debit cards. You can use a credit card to buy other items at Walmart, but not money orders specifically.