Most purchases made with a credit card are straightforward: Just swipe or tap, and go. But for some things, it’s a little more complicated. Credit card use for those purchases, for example, may be restricted to certain states, or the transaction amount may be capped.
A money order — a prepaid, guaranteed form of payment that resembles a check — belongs to the latter category. Technically, you can buy a money order with a credit card in a roundabout way that we explain below. But even when it’s possible to pay with plastic, it’s probably not worth it.
Paying with a credit card is possible, but not advised
Most retailers, banks and credit unions don’t let you purchase money orders with a credit card. Popular places to get a money order — including the U.S. Postal Service, Walmart, Western Union and 7-Eleven — accept only cash or debit cards for money order purchases.
There is a workaround to using a credit card to buy a money order, but it’s expensive. Here's how it would work:
You could use your credit card to take out a cash advance. In this scenario, you’d use your credit card like a debit card at an ATM and withdraw money. Then, you would use the funds from the cash advance to purchase the money order.
However, unlike cash withdrawn from a bank account, a cash advance must be paid back to the credit card issuer. And that's far from the only drawback:
- Issuers usually charge a cash advance fee, often $10 or 5% of the advance amount, whichever is greater.
- Interest on cash advances starts accruing immediately. There is no grace period, as you might have with normal purchases.
- The interest rate for cash advances is often higher than it is for purchases.
- Cash advances are often capped at a certain amount.
Other (better) ways to purchase money orders
For the most seamless experience, pay for a money order with a payment method accepted by the retailer or institution. These typically include:
- Cash.
- Debit card.
- Traveler’s check.
- Transfer from your bank.
Note that many places charge a fee to issue a money order, even when you pay with an acceptable form of payment. These fees are usually $5 or less.
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