Where to Buy a Money Order With a Credit Card?
Discover why buying money orders with a credit card is often not possible and explore viable alternative payment methods.
A money order provides a secure payment method, functioning much like a prepaid check. Senders use money orders to pay bills, send money where personal checks are not accepted, or when a guaranteed payment is necessary. Unlike a personal check, a money order cannot “bounce” because the funds are paid upfront by the purchaser. Money orders are generally limited to a maximum value, often $1,000 per transaction, ensuring the funds are secured by the issuer.
Why Credit Cards Are Not Accepted for Money Orders
Merchants and money order issuers do not accept credit cards for money order purchases due to financial and risk-related factors. A money order is considered a cash equivalent, so using a credit card to buy one is treated like a cash advance. Credit card cash advances incur higher fees for the cardholder, including a transaction fee, often 3% to 5% of the amount, and a higher annual percentage rate (APR). Interest on cash advances begins accruing immediately, as there is no grace period.
Accepting credit cards for money orders presents significant fraud risks for merchants. Money orders are easily convertible to cash, making them attractive for illicit activities, and merchants aim to mitigate the potential for chargebacks and associated losses. Credit card processing fees would make selling a cash-equivalent product like a money order unprofitable. Financial institutions and retailers limit payment options to safeguard against financial exposures.
Locations and Their Accepted Payment Methods
Money orders are available at various locations, each with specific payment policies. The United States Postal Service (USPS) accepts cash, debit cards, or traveler’s checks for purchases.
Walmart also sells money orders. Customers can purchase money orders using cash or a debit card. Most grocery store chains, such as Kroger and Publix, and convenience stores like 7-Eleven, CVS, and Walgreens, sell money orders. These establishments require payment by cash or debit card.
While some banks and credit unions offer money orders to their account holders, they do not permit credit card payments. Funds are typically drawn directly from an account, or payment is accepted via cash or debit card. This consistent policy across various vendors underscores the industry-wide stance against using credit cards for money order purchases.
Alternative Ways to Pay for a Money Order
Since direct credit card use for money orders is restricted, individuals relying on credit may consider alternative methods. One option is to obtain a cash advance from a credit card. This involves withdrawing cash from an ATM or bank branch using your credit card, then using that cash to purchase the money order. Cash advances come with substantial costs, including an upfront transaction fee and immediate interest accrual without a grace period.
A more common and less costly approach is to use a debit card, widely accepted at most money order locations. Debit cards draw funds directly from your checking account, avoiding cash advance fees and interest. Some consumers might load funds from a credit card onto a prepaid debit card, then use the prepaid card for the money order. However, many prepaid card issuers do not allow direct credit card loads. If permitted, such transactions are often processed as cash advances, incurring similar fees and interest.
When a money order is not strictly required, digital payment alternatives can provide a more convenient, less expensive solution. Online bill pay services, peer-to-peer payment applications like PayPal, Venmo, or Zelle, and direct electronic funds transfers facilitate payments without a physical money order. These digital methods offer quicker processing and may bypass fees associated with traditional money orders or cash advances.