Most credit card companies and money order sellers won't let you buy a money order with a credit card, but a few workarounds exist
The short answer is no — the major money order sellers (Western Union, MoneyGram, and your bank or post office) treat credit cards as cash advances, not regular purchases. A cash advance charges you a fee upfront (usually 3 to 5 percent) plus a higher interest rate that starts accruing immediately, with no grace period. You end up paying more than the money order itself costs.
That said, you have other routes. You can use a credit card to withdraw cash from an ATM, then buy the money order with that cash. You can load money onto a prepaid card and use that. Or you can pay a bill directly with your credit card instead of using a money order as the middleman. Each option has a real cost and a real reason to pick it — understanding those tradeoffs matters before you commit.
Key Takeaways
- Buying a money order with a credit card counts as a cash advance, which charges a fee and a higher interest rate with no grace period.
- You can withdraw cash from an ATM using your credit card, then buy a money order with that cash, but you will pay an ATM fee plus the cash advance interest.
- Prepaid cards and debit cards work directly at money order counters without the cash advance penalty, if you have one loaded with funds.
- Paying a bill directly with your credit card online or by phone often costs less and is faster than buying a money order.
- Some credit unions and smaller banks may allow credit card purchases of money orders, so calling your own bank first can save you a trip.
Why money order sellers treat credit cards as cash advances
A money order is a may provide payment — the seller collects cash or a debit transaction upfront and guarantees the recipient will get paid. From the money order company's perspective, a credit card is a loan, not cash. They do not want to front you the money order amount and then wait for your credit card company to pay them later. So they classify it as a cash advance: you are borrowing money from your credit card company to buy the money order, and your card company charges you for that loan immediately.
The fee is usually 3 to 5 percent of the amount, charged at the time of purchase. The interest rate is higher than your regular purchase APR — often 25 to 30 percent — and it starts accruing the same day, with no grace period. If you buy a $500 money order, you might pay $15 to $25 in fees and interest charges before you even send it.
Withdrawing cash from an ATM to buy a money order
This is the most straightforward workaround. You use your credit card at an ATM to withdraw cash, then take that cash to a money order counter. The catch is that ATM withdrawals also count as cash advances — you pay the same fee and interest rate. But at least you are not paying twice.
The real cost: a 3 to 5 percent cash advance fee plus interest accruing daily until you pay off the balance. If you pay the full balance on your next statement, the interest might be small. If you carry it for a month, it adds up. Compare this to the cost of a money order itself (usually $1 to $5) and decide whether the credit card route makes sense for your situation.
One advantage: some credit cards offer a 0 percent introductory APR on purchases, but not on cash advances. If you have a card with a 0 percent intro rate on purchases, this route does not help you — the cash advance rate applies regardless.
Using a prepaid card or debit card instead
If you have a prepaid card or debit card with money loaded on it, you can use it to buy a money order without triggering a cash advance. Money order sellers treat debit and prepaid cards like regular payment methods, not loans. You pay only the money order fee itself — typically $1 to $5 depending on the amount and the seller.
This works if you already have the card and funds on it. If you do not, opening a prepaid card account takes time and may have its own fees. Some prepaid cards charge monthly maintenance fees or per-transaction fees that can add up. Check the card's fee schedule before you load money onto it.
A debit card linked to your bank account works the same way and usually has no extra fees beyond what your bank charges. If you have one, this is the cheapest option.
Paying the bill directly with your credit card
Before you buy a money order at all, ask yourself why you need one. If you are paying a bill or a person who accepts credit cards, you can often pay them directly and skip the money order step entirely. Many landlords, utilities, and service providers now accept credit card payments online or by phone.
The advantage is speed — no trip to buy a money order, no waiting for it to arrive in the mail. The disadvantage is that some billers charge a fee for credit card payments (usually 2 to 3 percent), and some do not accept credit cards at all. But if they do, this is often cheaper and faster than the money order route.
If the recipient does not accept credit cards, ask whether they accept a bank transfer, a check, or an online bill pay service. Many banks offer free bill pay to their customers, which mails a check on your behalf at no cost.
Checking with your own bank or credit union first
Some smaller banks and credit unions have different policies than the national money order sellers. Your bank might allow you to buy a money order with a credit card without treating it as a cash advance, especially if you are a long-standing customer. It costs nothing to call and ask.
If your bank does allow it, you will still pay the money order fee, but you will avoid the cash advance fee and interest. This is worth a five-minute phone call before you go to Western Union or the post office.
Comparing the real costs of each option
| Method | Upfront Cost | Interest or Additional Fees | Best For |
|---|---|---|---|
| Credit card cash advance at ATM | 3–5% cash advance fee | Interest accrues daily until paid off | Emergency only; pay off immediately |
| Prepaid or debit card | Money order fee only ($1–$5) | None, if card has no monthly fee | You already have the card loaded |
| Direct credit card payment to biller | Biller's credit card fee (0–3%) | None | Biller accepts credit cards |
| Bank bill pay (check) | None | None | Biller accepts checks; you have time to wait |
| Your bank's money order with credit card | Money order fee only ($1–$5) | None, if bank allows it | Your bank has a different policy |
Frequently Asked Questions
Can I use a credit card to buy a money order online?
Most online money order services (like those offered by Western Union or MoneyGram online) also treat credit cards as cash advances. A few smaller services may differ, but you should assume the cash advance fee and interest apply. Calling the service first to confirm is worth the time.
What if I need a money order right now and have no other way to pay?
If you must use a credit card, withdraw cash from an ATM and buy the money order with that cash. Pay off the cash advance balance on your next statement to minimize interest charges. This is not ideal, but it is faster than waiting to get a debit card or prepaid card set up.
Does using a credit card to buy a money order hurt my credit score?
A cash advance itself does not hurt your score, but it does increase your credit utilization (the amount of available credit you are using). If your utilization jumps above 30 percent, it can lower your score slightly. Paying off the balance quickly brings it back down.
Can I use a gift card to buy a money order?
Most gift cards are treated like prepaid cards and work at money order counters without a cash advance fee. Check with the specific money order seller first, since policies vary. Visa and Mastercard gift cards usually work; store-specific gift cards typically do not.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Your credit card company sets a cash advance limit, which is often lower than your regular credit limit. Check your card's terms or call the customer service number on the back of your card to find out your limit before you go to the ATM.