Need to pay rent, cover bills, or send money to loved ones, but you don’t have a bank account or access to online transfers? Money orders are a secure and widely accepted solution. But can you buy a money order with a credit card if you don’t have cash on hand?
Purchasing money orders on credit can feel challenging, especially if you’ve never done it before. That’s why we created this guide at Remitly to see if and how it’s possible. We’ll also highlight key challenges, offer smart tips, and explore alternatives worth considering. You’ll walk away with clear, practical answers to help you make the right decision.
What is a money order?
A money order is a prepaid paper payment method, similar to a check. You purchase the money order upfront, usually with cash or a debit card. This means it can’t bounce due to a lack of funds, making it a reliable way to send and receive payments.
People use money orders for several reasons. They’re a secure option when you don’t want to carry or mail cash, and they don’t require a bank account to send or receive funds. Businesses, landlords, and financial institutions worldwide accept money orders, increasing their popularity for international and domestic transactions.
For example, money orders are helpful when paying rent, settling utility bills, or sending money to loved ones who don’t have a bank account. You can use them where personal checks or electronic transfers aren’t accepted or available.
Can you buy a money order with a credit card?
The simple answer is sometimes, but it’s tricky. Whether you can use a credit card for money order purchases depends on the issuer and vendor you’re buying from. Different vendors have different rules, but most don’t usually accept a credit card for a money order.
In the past, Western Union and 7-Eleven have allowed customers to buy money orders on credit, but that’s no longer the case. Even the United States Postal Service (USPS) and MoneyGram—which people often assume will take a credit card for this purchase—usually don’t.
Vendors now prefer cash, debit cards, or bank transfers because these payment options are safer and help them avoid issues in the long run. On the other hand, credit cards often come with high processing fees and higher fraud risks.
If you do find a place that accepts credit cards for money orders, your card company might treat it like taking out a cash loan, which often comes with high interest. It might be better to stick with cash or a debit card, unless absolutely necessary.
Challenges you may face
Let’s say you find a vendor that allows you to use a credit card to complete money order purchases. Several challenges could make it more costly and complicated than expected.
Cash advance classification
If your purchase goes through, the credit card issuer may likely treat it as a cash advance and not a regular transaction. That’s a crucial difference to note because:
- Interest will start accruing immediately, with no grace period.
- Interest rates on a cash advance are often much higher, sometimes reaching 25% to 30%.
These charges are included in addition to any flat cash advance fees. If you don’t pay off your credit card right away, the total cost can grow quickly.
Purchase limits
There may be limits on how much you can buy, as retailers often cap the maximum value of a single money order.
Your credit card company might also limit how much you can withdraw as a cash advance, usually a fraction of your total credit limit.
These factors can make it difficult to use money orders for larger payments with a credit card.
Additional flags and denials
Your bank might see using a credit card for money orders as suspicious and block the transaction. Some credit card companies may also view frequent cash advances as risky, which could hurt your credit or account.
If you manage to find a workaround, buying a money order with a credit card can come with unexpected costs and limitations. Be sure to weigh your options against other alternatives before deciding.
What are the alternatives?
If buying a money order with a credit card seems too costly or complicated, don’t worry. There are easier and more affordable alternatives for sending money or making payments, including the following:
Use a debit card
Money order vendors like the USPS, Walmart, and some grocery stores accept debit cards. A debit card draws money directly from your bank account, meaning:
- No cash advance fees
- No interest charges
- Faster, straightforward transactions
Unlike credit cards, debit cards don’t raise red flags with your bank or trigger extra costs. It’s a safer, more affordable way to purchase a money order if you need one for housing, utility bills, or other formal payments.
Pay with cash at approved vendors
Cash remains one of the most widely accepted forms of payment for money orders. Many institutions prefer or require cash for money order purchases.
- No digital processing issues: No declined cards, system errors, or verification delays.
- Privacy and security: Cash payments don’t tie the transaction to a bank account or card, which some users prefer for privacy.
- Guaranteed acceptance: Vendors won’t reject legal tender, and you don’t need to worry about bank-imposed transaction limits.
Paying with cash is best when you’re purchasing a money order in-person and want a fast, hassle-free transaction without worrying about electronic processing fees or approvals.
Use mobile banking apps or wire transfers
Digital options may serve your needs for speed and more convenience. Popular choices include:
- Remitly: Best for international transfers, especially when sending money to family, friends, or freelancers abroad.
- Mobile banking apps: Offer protection for buyers and sellers, making them useful for online purchases or service payments.
- Wire or ACH transfers: Ideal for larger payments, such as business transactions, tuition, or sending money abroad.
Digital transfers are instant or same-day, often free or low-cost, and don’t require visiting a physical location. You also don’t risk losing a paper money order or waiting in line.
Pro tips to navigate money order purchases
Here are a few smart strategies to save money and time when buying a money order:
Plan ahead to ensure you’re using the appropriate payment method
Before buying a money order, decide how you’ll pay for it. Many vendors don’t accept credit card payments, and those that do may charge high fees. Cash or debit is usually a safe option. Planning ahead keeps you from scrambling at the counter or paying more than you should.
Double-check vendor payment policies
Not all money order providers operate the same way. For example, the USPS accepts debit cards, but not credit cards. Walmart and Western Union have low fees, but may limit order amounts. So, always review retailer policies and check the payment types, fees, and limits of your chosen provider to avoid last-minute surprises.
Be aware of hidden costs with credit card cash advances
Using a credit card to buy a money order can be read as a cash advance, which often comes with more than just a one-time fee. For a $500 money order, for example, you could end up paying significantly more when fees and interest are added.
Instead of assuming your card will treat it like a normal purchase, check your cardholder agreement or call your issuer to get a clear picture of the actual costs involved.
Keep money order receipts for tracking and proof of payment
When you purchase a money order, you’ll receive a receipt or stub that contains key information such as the serial number, amount, and date. Holding onto this receipt is crucial because it serves as proof of payment and is necessary for tracking purposes.
If the money order is lost or stolen, the receipt allows you to file a claim or request a replacement. Without it, recovering your funds could potentially be impossible.
Some issuers also charge a fee for tracing or cancelling a money order, so keeping accurate records helps ensure you don’t lose both time and money if something goes wrong. A good practice is taking a photo of the money order or scanning it, as well as the receipt, before sending it. Then, store the original stub somewhere safe until the payment is confirmed.
Make smarter money moves today
Buying a money order with a credit card isn’t always possible. Many vendors only accept cash or debit cards for money order purchases. Even where credit cards are allowed, fees and high interest rates can make this option less attractive. To avoid surprises, be sure to plan ahead.
Consider safer, more affordable alternatives like paying with a debit card, using cash at approved vendors, or turning to mobile banking, wire transfers, and services like Remitly. By understanding your options and preparing in advance, you can avoid unnecessary costs and confidently choose the most secure and cost-effective method for your transactions.
FAQs
Is buying a money order with a credit card a good idea?
It’s not a financially smart decision in most cases. Although it might offer short-term convenience, the applicable fees make this option far more expensive than using a debit card or cash. Unless it’s an emergency and no other option is available, try to avoid using a credit card for money orders.
What fees should I expect if I use a credit card for a money order?
Credit card companies usually treat money order purchases as cash advances. This poses a financial risk for vendors and incurs extra fees, such as cash advance fees and high interest rates. To avoid those complications and reduce the chances of misuse, many retailers limit payment options to debit cards or cash.
Which vendors sell money orders?
You can purchase money orders from several trusted providers, including the USPS, Western Union, and MoneyGram. Many pharmacies, convenience stores, and grocery stores—such as Kroger and 7-Eleven—also offer money orders. However, each vendor may have different limits, fees, and payment method rules. Be sure to confirm their policies before heading out.
Can I earn rewards or points by using a credit card to buy a money order?
While it might seem like a clever way to earn credit card rewards, many issuers don’t classify money order purchases as a regular transaction. That means you won’t earn rewards or points, and you’ll likely face higher fees and interest charges immediately.