Using a money order with credit card can be a smart solution when you need to send a guaranteed payment, but it’s not without drawbacks. While it seems easy to charge the amount and move on, the fees and policies involved can make this option expensive and risky. Many people are unaware that buying a money order using a credit card is typically treated as a cash advance by credit card companies, not a regular purchase.
This matters a lot because cash advances come with higher interest rates, instant interest charges, and service fees, even before the money order provider adds its own charges. The process may also be limited by specific company rules, store policies, and even federal regulations. To use this method wisely, you should know what it involves, where it’s accepted, and how it affects your wallet.
Understanding What a Money Order Really Is
A money order is a prepaid certificate that works much like a check but doesn’t bounce because it’s backed by funds already paid in full. Once you purchase it, you can send or hand-deliver it to someone who can then deposit or cash it. These are often used when people don’t have bank accounts, need to pay bills without using personal checks, or must make secure transactions.
You can get a money order at places like the post office, grocery stores, convenience shops, or companies such as Western Union and MoneyGram. They usually cost between $1 and $5 depending on the amount and location. Most services cap the maximum amount at $1,000 per money order, and you can buy multiple to cover larger sums.
When you use a money order with credit card, you’re essentially borrowing money from your card issuer to buy a guaranteed payment method. This adds complexity to something that’s otherwise very simple when paid with cash or debit.
Can You Really Buy a Money Order with Credit Card?
Yes, you can, but it’s not easy everywhere. Not all locations accept credit cards for this kind of transaction. Even those that do may treat it as a cash advance, which changes how the credit card company calculates fees and interest. That’s why it’s so important to know which providers allow this type of purchase and how they handle it.
Many big-name places don’t accept credit cards at all for money order purchases. This includes the U.S. Postal Service and Walmart, where you must use either cash or a debit card. On the other hand, services like MoneyGram online or certain Western Union agent locations may accept credit card payments. However, even they often warn about extra fees and the potential for your bank to consider the transaction as a cash advance.
Here is a comparison table showing where it’s allowed and where it isn’t:
| Provider | Accepts Credit Card? | Payment Details |
| USPS | ❌ No | Cash, debit, or traveler’s checks only |
| Walmart | ❌ No | Accepts only cash or debit |
| Western Union | ✅ Sometimes | Varies by location; fees apply |
| MoneyGram (Online) | ✅ Yes | Accepts credit cards online, but charges extra processing fees |
| CVS, Walgreens | ❌ No | Cash or debit card required |
| Banks or Credit Unions | ❌ Rarely | Most reject credit for money order transactions |
They generally prefer cash-equivalent payments to avoid fraud risks. If you want to use a credit card, you’ll likely need to purchase it online or through a specific financial service.
Why Credit Cards See It as a Cash Advance?
Buying a money order with credit card seems like a regular payment, but your credit card company sees it as you taking cash out of your line of credit. This difference matters because cash advances:
- Start charging interest immediately
- Have higher interest rates (often 20–30%)
- Come with a flat fee or percentage-based charge (usually 3–5%)
This means if you buy a $1,000 money order with your credit card, you might pay:
- $50 in fees (5% cash advance fee)
- $25–30 per month in interest, depending on your APR
So, even though it feels like a simple swipe of the card, it can quickly turn into expensive debt if not paid off immediately.
How Much Does It Cost to Use a Credit Card?
Let’s break down the difference between paying with cash or debit versus using a credit card:
| Payment Method | Base Fee | Additional Fees | Interest Charges (Monthly) | Total Estimated Cost |
| Cash | $1.00 | $0 | $0 | $1.00 |
| Debit Card | $1.00 | $0 | $0 | $1.00 |
| Credit Card | $1.00 | $30 (fees + processing) | $25 (estimated) | $56.00 |
They clearly cost more when you use a credit card. If you don’t repay the balance right away, the amount continues to grow.
What Are Safer Alternatives?
If you don’t want to pay extra, there are better ways to send money than buying a money order with credit card. These include:
- Debit card: Uses your checking account directly, no interest or extra fees.
- Cash: Accepted everywhere and costs the least.
- Prepaid card: Load it with funds, then use it like a debit card.
- Bank transfers: Zelle, PayPal, Venmo, and similar apps allow fast digital payments.
- Bank checks: Most banks offer certified checks as an alternative for large amounts.
Each option has pros and cons, but they don’t charge interest like credit cards do. They are also more widely accepted when buying money orders.
When Does It Make Sense to Use a Credit Card?
In some rare cases, buying a money order with credit card might be useful. For example, if you have no other funds and you’re facing an urgent need like paying rent, legal fees, or sending money to a loved one—this method offers quick access to a guaranteed payment tool.
However, you should still be cautious. Even if it seems like a good idea now, it could cost you more over time. Avoid using credit cards for recurring money order payments or non-urgent transactions. If you do use it, pay the full balance as soon as possible to limit interest charges.
Will This Affect Your Credit Score?
Using a credit card to buy a money order won’t directly hurt your credit score, but it can cause problems if:
- You don’t pay it off quickly
- You go over 30% of your credit limit
- You get charged repeated cash advance fees
These actions increase your credit utilization ratio, which is a key factor in your credit score. High utilization lowers your score, even if you always pay on time.
What to Ask Before You Buy?
Before making the purchase, call your credit card company and ask:
- Will this be treated as a cash advance?
- What is the cash advance fee?
- Is there an interest-free grace period?
- Will I earn rewards or cashback on this transaction?
In most cases, you won’t earn points or rewards, and the cash advance terms apply. But it’s best to ask first so you’re not surprised by the fees.
Frequently Asked Questions
Is it legal to buy a money order using a credit card?
Yes, it’s legal. However, many companies restrict this due to the cost and risk.
Why won’t USPS or Walmart accept credit cards?
They aim to reduce fraud and processing costs. It’s also harder to reverse or dispute cash transactions.
Can I cancel a money order bought with a credit card?
Most providers allow cancellation if the money order hasn’t been cashed, but you must show ID and fill out paperwork.
Do I get purchase protection if I use a credit card?
Usually not, because cash advances and money orders are excluded from credit card protections.
Are there credit cards that treat it as a normal purchase?
Rarely. You might find one, but it’s not common. You must call and confirm before attempting it.
Conclusion
A money order with credit card can work in emergencies, but it’s generally not the best option. They often cost more, come with hidden fees, and may damage your credit if misused. The safer bet is using cash, a debit card, or a prepaid card. If you must use credit, make sure you understand the terms and pay the balance immediately.
Using credit responsibly means knowing when the cost outweighs the convenience. Don’t let a simple payment turn into long-term debt. Whether you’re paying rent, sending money to family, or covering an urgent bill, always weigh your options.
Also, Read What is a Credit Card Balance Really Means?
