Most credit card issuers do not let you buy money orders directly, but some payment methods work
You cannot walk into a store and hand a cashier your credit card to buy a money order the way you would with cash or a debit card. Money order sellers — the U.S. Postal Service, Western Union, MoneyGram, and most grocery stores and pharmacies — treat credit cards as cash advances, which triggers fees and interest charges immediately. A few issuers block the transaction altogether.
The workaround is to use your credit card to fund a method that money order sellers will accept: a debit card, a prepaid card, or a bank transfer. Each route has different costs and timing, and which one makes sense depends on what you are trying to accomplish and how much the money order costs.
Key Takeaways
- Money order sellers classify credit card purchases as cash advances, which charge interest from the day of purchase with no grace period.
- You can use a credit card to load a prepaid debit card, then use that card to buy the money order without triggering a cash advance fee.
- Some credit cards allow you to transfer funds to your bank account, which you can then withdraw as cash or use to buy a money order.
- The cheapest route is usually to use cash or a debit card directly, since any workaround adds a layer of fees.
- If you need a money order urgently and have no other payment method, a prepaid card loaded with your credit card is faster than a bank transfer.
Why credit card companies treat money orders as cash advances
A cash advance is when you use your credit card to get cash or cash-like funds instead of making a purchase. Money orders fall into this category because they are not goods or services — they are a way to move money. The moment you buy one, the card issuer treats it as if you withdrew cash from an ATM.
This matters because cash advances have different terms than regular purchases. You pay a cash advance fee — typically 3% to 5% of the amount, with a minimum of $5 to $10 — charged to your account immediately. Interest starts accruing the same day at a higher rate than your purchase APR, and there is no grace period. If your card has a 21% purchase APR and a 25% cash advance APR, you are paying that higher rate from day one.
Some issuers, including Discover and certain American Express cards, decline money order purchases outright. Others allow them but flag them for review. The safest assumption is that your card will not work, or that it will work but cost you significantly more than paying another way.
Using a prepaid debit card as a workaround
A prepaid debit card is a card you load with money upfront, then spend down like a gift card. Money order sellers accept prepaid cards as regular debit cards, not cash advances. You can load a prepaid card using your credit card, then use that card to buy the money order.
The cost depends on which prepaid card you choose. Some cards charge a monthly fee ($5 to $15), a load fee ($1 to $3 per transaction), or both. Others are free to load but charge a small fee to check your balance or make a withdrawal. A few cards, like Chime or NetSpend, offer fee-free loading when you use certain methods. You will need to check the card's fee schedule before you load it.
The timeline is immediate: you load the card online or at a retail location, and the funds are available within minutes to a few hours. You can then go to any money order seller and use the prepaid card like a debit card. This route works best if you already have a prepaid card or if the total fees (card fee plus load fee) are less than the cash advance fee you would pay on your credit card.
Transferring credit card funds to your bank account
Some credit card issuers allow you to transfer funds from your card to your linked bank account. This is different from a cash advance — it is a balance transfer or a direct account transfer, depending on the card. The funds land in your checking account, where you can withdraw cash or use your debit card to buy a money order.
Not all issuers offer this. Chase, American Express, and Citi have different policies: some allow it for existing cardholders, others do not. If your card does offer it, there is usually a fee (1% to 3% of the amount transferred) and a processing time of 1 to 3 business days. You will need to log into your card's app or website and look for a "transfer to bank" or "account transfer" option, or call the issuer to ask.
This route is slower than a prepaid card but may be cheaper if your card's transfer fee is lower than the prepaid card's load fee. It also gives you the option to withdraw cash instead of buying a money order, which can be useful if your plans change.
Comparing the costs of each method
The cost difference between methods becomes clear when you look at a specific example. A $500 money order costs $15 to $25 in cash advance fees plus interest if you use your credit card directly. The same money order costs $3 if you load a prepaid card with a $3 load fee and no monthly fee. A bank transfer at 2% costs $10. If you have cash or a debit card, it costs nothing.
| Method | Fees | Timeline | When to use it |
|---|---|---|---|
| Credit card directly (cash advance) | 3–5% cash advance fee + interest from day one | Immediate | Only if no other option; most expensive |
| Prepaid debit card | $0–$15 monthly + $1–$3 load fee | Minutes to hours | Need money order urgently; already have a prepaid card |
| Bank account transfer | 1–3% transfer fee | 1–3 business days | Not in a hurry; transfer fee is lower than prepaid card fees |
| Cash or debit card (direct) | None | Immediate | Best option if available |
The prepaid card method saves you money in most situations because you avoid both the cash advance fee and the interest that would accrue on your credit card. The bank transfer method is competitive only if your issuer charges a low transfer fee and you are not in a hurry.
What to do if you have no other payment method
If a credit card is truly your only option, a prepaid card is usually cheaper than using the credit card directly. Load the prepaid card with the amount you need plus a small buffer for the load fee, buy the money order, and move on. The cash advance fee on your credit card will be higher, and the interest will accrue faster.
If you are in a bind and need the money order today, use the prepaid card route. If you have a few days, a bank transfer may save you money. Either way, treat this as a one-time solution, not a regular method. Money orders are meant to be paid for with cash or a debit card, and using credit to buy them is expensive.
After you send the money order, review your credit card statement to make sure the transaction posted correctly and no unexpected fees appeared. If you were charged a cash advance fee when you expected a regular purchase, contact your issuer and ask them to review the transaction.
Alternatives to money orders when you have a credit card
Before you commit to buying a money order with a credit card, consider whether you actually need one. A money order is useful when the recipient needs a may provide payment method or when you do not want to share your bank account number. But if you have a credit card, you have other options.
A wire transfer through your bank moves money directly to another account, though it costs $15 to $30 and takes 1 to 2 business days. A peer-to-peer payment app like Venmo, PayPal, or Square Cash lets you send money instantly to someone with an account, though fees apply if you use a credit card as the funding source. A cashier's check from your bank is may provide like a money order but costs $10 to $15 and requires a bank account.
If the recipient will accept a credit card payment directly, that is the simplest route — no fees, no workarounds, no cash advances. Ask them first before you spend time and money on a money order.
Frequently Asked Questions
Will my credit card be declined if I try to buy a money order?
It depends on your issuer and card type. Some cards decline money order purchases outright; others allow them but charge a cash advance fee. The only way to know is to try, or to call your issuer and ask whether they allow money order purchases and what fees apply.
Can I use a credit card to load a prepaid card at a store?
Yes. Most retail locations that sell prepaid cards — Walmart, Target, CVS, Walgreens — let you load them at the register using a credit card. Some charge a load fee on top of the card's own fees. Ask the cashier what the total cost will be before you proceed.
How long does a bank transfer from my credit card take?
Most transfers take 1 to 3 business days. Some issuers offer faster transfers for an additional fee, or instant transfers for cardholders with certain account types. Check your card's app or call the issuer to see what options are available.
If I buy a money order with a credit card, when does the interest start?
Interest starts accruing immediately, the day you buy the money order. There is no grace period for cash advances, unlike regular purchases. The interest rate is also higher than your purchase APR, so the cost adds up quickly if you do not pay off the balance right away.
Is there a limit to how much I can spend on a money order with a credit card?
Money order limits are set by the seller, not your credit card. The U.S. Postal Service caps money orders at $1,000 each. Western Union and MoneyGram allow up to $2,500 per transaction. Your credit card's cash advance limit may also apply, so check both before you try to buy a large money order.