Can you buy a money order with a credit card?
Quick insights
- It may be possible to pay for a money order with a credit card, but it will likely need to be through a cash advance on your card.
- Credit card cash advances typically incur fees, so you may want to avoid using a card to purchase a money order.
- Cash and debit cards are more commonly accepted payment options for a money order.
A money order is a secure form of payment that functions like a prepaid check. It allows the sender to specify the recipient and the amount to be paid. It provides a layer of security because to cash a money order, the recipient will need to show identification that matches the money order.
One key difference between a check and money order is that they are backed by guaranteed funds. You cannot purchase a money order if you don’t have the money to fund the full amount of the money order—plus fees.
Money orders are commonly sold at post offices, banks, credit unions and some retail stores, like convenience stores or supermarkets. The fee varies by location, but money orders typically cost no more than a few dollars each.
Can this fee be paid with a credit card? Yes, it is possible, but not generally recommended. Read on to learn how you could potentially use a credit card to pay for a money order but also how you may incur more fees by doing so.
Paying for a money order with a credit card
You may be able to use your credit card to pay for a money order, but it will likely be through a cash advance. In general, retailers will not allow you to use your credit card to pay for the money order directly, and if they do, they may treat the transaction as a cash advance.
When you take out a cash advance on your credit card, you're borrowing money against your card's line of credit. The amount of the cash advance is added to your credit card balance, and it cannot exceed the current available balance.
Considerations when buying a money order with a credit card
Paying for a money order through a cash advance may cost more than the amount of the money order. Interest typically begins accruing right away on a credit card cash advance. Cash advances also generally:
- Have a higher APR than regular purchases
- Incur a cash advance fee
- Do not earn rewards (most card issuers will not issue rewards points or miles for cash advances)
Cash or debit cards are more commonly accepted forms of payment for a money order. Unlike a credit card, which uses credit to fund a purchase, cash and debit cards provide the proof of funds that a money order requires.
But if you’re looking to send money, a money order is not your only option.
When you may want to send a money order
Modern peer-to-peer payment solutions and apps may provide a more straightforward and quicker way to send money. You may find obtaining and sending a money order can be somewhat cumbersome in comparison. However, there are some situations where a money order may be preferrable.
You may want to send a money order if:
- The recipient requests a guaranteed form of payment
- You do not have a bank account or the ability to send a personal check
- You want a clear record of payment and receipt (money orders can be tracked)
- You need to send money overseas or through the mail and have concerns about fraud
In those instances, a money order may be a good option.
In summary
It is possible to pay for a money order with a credit card, but it may not be the best option as you will need to take out a cash advance. Cash advances typically incur fees, have higher APRs and start incurring interest right away.
For these reasons, you may want to explore alternative payment methods—like peer-to-peer payment apps—to using a credit card to pay for a money order. If possible, cash or a debit card may provide a less costly way to pay for a money order.
