Can You Buy a Money Order With a Credit Card? (Find Out Here)

This article provides an overview of the process of buying money orders with a credit card, including the advantages and disadvantages of using this.
Ketcha Brandon
Buy a Money Order With a Credit Card

In today's digital age, there are numerous methods for conducting financial transactions, ranging from traditional methods like cash and checks to modern alternatives such as credit cards and digital wallets.

Money orders, a secure form of payment similar to checks, are often used for transactions where cash or checks are impractical. But can you buy a money order with a credit card? Let's delve into this question to understand the nuances involved.

You typically cannot purchase a money order with a credit card. Instead, you will need to used cash or a debit card that takes funds directly from your bank account.

Table of Contents

Understanding Money Orders

Before we explore the possibility of purchasing money orders with credit cards, let's briefly discuss what money orders are and how they function.

A money order is a prepaid and secure form of payment issued by financial institutions, postal services, or other agencies. It is typically used when the payee requires guaranteed funds. Money orders are often used for transactions where cash or personal checks are not accepted or are impractical, such as paying bills, making purchases, or sending money through the mail.

Buying a Money Order With a Credit Card: Possibilities and Limitations

While purchasing a money order with a credit card may seem like a convenient option, it's essential to understand that most issuers of money orders do not accept credit cards as a form of payment. Here are some reasons why:

Cash Advance Fees:

When you use a credit card to purchase a money order, it is often treated as a cash advance rather than a regular purchase. This means that you may incur cash advance fees, which can be substantial and may include additional interest charges.

Credit Card Policies:

Even if a vendor accepts credit cards for purchasing money orders, your credit card issuer may have policies in place that prohibit or discourage cash advances for certain transactions, including money orders.

Fraud Prevention:

Money order issuers may be wary of accepting credit cards due to the risk of fraudulent transactions, as credit card payments can be disputed or reversed, leading to potential losses for the issuer.

ALSO READ: How to Order Checks Online (10 Best Places to Consider)

Where Can You Buy a Money Order?

You are able to buy money orders at several locations:

  • U.S post office branches, including military post offices, sell money orders.
  • Retail locations such as Walmart stores, supermarkets, convenience stores and drugstores may sell money orders, generally via in-store MoneyGram and Western Union agents.
  • Banks and Credit Unions typically sell money orders to customers.
  • Check Cashing stores, which cater to people without bank accounts, often sell money orders.

Most at times, money orders must be purchased in person, so before you show up at a location to buy a money order, first ask about the following:

  • Forms for Payment accepted
  • Any identification required to buy a money order
  • Limitations on Amounts
  • Fees, generally range from less than $1 to $5, with respect to the amount of the money order and where you are buying it.

It is good you have in mind that not all locations that sell money orders handle international money orders. In case you need to send money internationally, then make sure you also check on this before showing up at that location.

ALSO READ: Can You Cash A Check At An ATM? (Yes, Here's How)

Can You Pay For a Money Order With a Credit Card?

Generally, the only ways to purchase a money order are with cash or a debit card. Money orders were formerly accepted as credit card payments at Western Union and 7-Eleven, however that is no longer the case. Furthermore, a personal check cannot be used to purchase a money order.

Not enough cash on hand to pay with a money order? You might use the money from an ATM, credit union, or bank credit card cash advance to buy a money order. But generally speaking, this is not a smart choice because it can be an expensive alternative.

Should You Buy Money Order With Credit Card?

There are numerous reasons to avoid using a credit card cash advance to buy a money order:

  • There is a typically a fee for a cash advance, either a flat rate or a percentage. It's often $10 or $5 of the amount of the advance, whichever is higher but still some credit cards charge more than this.
  • If a cash advance raises your credit utilization ratio, it may have a negative effect on your credit score. Credit ratings may be further impacted if you use more than 30% of your available credit.
  • There is a grace period before interest is charged on credit card purchases. However, interest on financial advances typically starts to mount right away.
  • Some credit card issuers allocate future payments toward your purchase balance before your cash advance balance if you currently owe money on your account. Paying off your cash advance balance may be more difficult because of the higher interest rates associated with them.
  • The annual percentage rate (APR) for a credit card cash advance is generally higher than the APR for a purchase—often much higher.

Final Thoughts: Can You Buy a Money Order With a Credit Card?

While the option to buy a money order with a credit card may be limited or nonexistent, it's essential to explore alternative methods for obtaining money orders. Understanding the policies of both the money order issuer and your credit card issuer can help you make informed decisions when conducting financial transactions.

Whether you opt for cash, debit cards, or other payment methods, money orders remain a reliable and secure option for various financial transactions.

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About the Author

Ketcha Brandon
I am Ketcha Brandon, An article writer, content creator, Video producer, Financial Consultant and a certified Google Publisher. I write content for Our website provide information on topics such as bank accounts, Money transfers,…

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