Can I Buy a Money Order With a Credit Card?

A money order is a pre-paid paper document, offering a secure alternative to cash or personal checks. These instruments are guaranteed by the issuer and are particularly useful for individuals who may not have traditional bank accounts or who require a verifiable payment method. Many wonder if credit cards can be used to purchase them.

Credit Card Acceptance for Money Orders

Most major money order providers do not accept credit cards for direct purchases. Institutions like the U.S. Postal Service (USPS), Walmart, and MoneyGram require payment in cash or with a debit card. Even Western Union locations, which once allowed credit card transactions, now primarily accept cash or debit. This policy stems from how credit card companies categorize money order purchases.

Understanding Cash Advances

Credit card companies classify money order purchases as cash advances, considering them cash equivalents. A cash advance is a short-term loan against your credit card’s limit. Unlike standard purchases, interest on cash advances begins accruing immediately from the transaction date, without a grace period. Financial institutions also apply an upfront fee for cash advances, often 3% to 5% of the amount or a flat minimum. These combined costs, including higher interest rates and immediate fees, make using a credit card for a money order an expensive transaction.

Purchasing Money Orders

Money orders are widely available at various locations nationwide. You can purchase them at post offices, banks, credit unions, and many grocery and convenience stores. Financial service providers like Western Union and MoneyGram also offer money orders.

When purchasing a money order, accepted payment methods are usually cash or a debit card, though some banks may allow direct use of checking account funds. To complete the transaction, you need to provide the recipient’s full name, your name and address, and the exact amount. Domestic money orders commonly have a maximum limit of $1,000 per single order.

Alternative Payment Solutions

If a money order doesn’t suit your needs, especially if you planned to use a credit card, several other options exist for sending funds. Bank and wire transfers are suitable for larger sums, often directly between bank accounts. Peer-to-peer (P2P) payment applications, such as PayPal, Venmo, and Zelle, offer convenient digital transfers. While these apps allow linking credit cards, a fee, typically around 3%, may apply for credit card-funded transactions. Cashier’s checks, issued by banks and guaranteed by the bank’s own funds, serve as a secure alternative for larger payments, often exceeding the $1,000 money order limit.