Most money order sellers will not take credit cards directly
You cannot buy a money order with a credit card at most places that sell them. Banks, post offices, grocery stores, and check-cashing services typically accept only cash, debit cards, or bank transfers. A few retailers like Walmart and Western Union have begun accepting credit cards at some locations, but this is not standard, and you should call ahead to confirm.
The reason is straightforward: money orders are a cash-equivalent product. The seller assumes the risk that your payment will clear. When you hand over cash or a debit card, that risk is immediate and certain. A credit card creates a chargeback risk — you could dispute the transaction later, and the seller loses both the money order and the cash they paid out. Most sellers avoid this by refusing credit cards entirely.
If your goal is to send money without using cash, a credit card is rarely the right tool for a money order. But there are workarounds, and understanding which ones cost you money matters.
Key Takeaways
- Most money order sellers — banks, post offices, and check-cashing services — do not accept credit cards because of chargeback risk.
- You can use a credit card to withdraw cash from an ATM, then buy a money order with that cash, but ATM fees and cash advance fees will apply.
- Some Walmart and Western Union locations accept credit cards for money orders, but availability varies by location and you should confirm by phone first.
- If you need to send money and have a credit card but no cash, a peer-to-peer payment app like Venmo or PayPal may be faster and cheaper than the cash-advance route.
- Money orders bought with a credit card's cash advance will accrue interest immediately at a higher rate than purchase interest, with no grace period.
Using a cash advance to buy a money order
The most common workaround is to withdraw cash from an ATM using your credit card, then buy the money order with that cash. This works, but it costs you money in two ways.
First, your credit card issuer will charge a cash advance fee, typically 3 to 5 percent of the amount withdrawn. If you withdraw $500, expect to pay $15 to $25 just for the withdrawal. Second, the ATM operator may charge an additional fee — often $2 to $5 — if you are using an out-of-network machine.
Third, and most important: cash advances do not get a grace period. Interest begins accruing the moment you withdraw the money, at a rate that is usually higher than your purchase APR. If your card charges 18 percent APR on purchases, it may charge 24 percent on cash advances. That interest compounds daily until you pay the balance off.
The math is harsh. A $500 cash advance at 5 percent fee ($25) plus 24 percent annual interest costs you roughly $35 in the first month alone if you do not pay it back immediately. A money order itself costs $1 to $2. You are paying 15 to 20 times the money order fee just to get the cash.
Walmart and Western Union locations that accept credit cards
Some Walmart stores and Western Union agents have begun accepting credit cards for money orders, but this is not universal. Walmart's policy varies by location — some stores allow it, others do not. Western Union's acceptance also depends on the individual agent location.
If you want to try this route, call the specific store or agent before you go. Ask whether they accept credit cards for money orders and confirm the fee. Do not assume that because one location accepts them, another will.
Even if a location accepts your credit card, the money order itself will still cost $1 to $3, and you will still be charged interest on the purchase if you do not pay your balance in full by the due date. The advantage is that you avoid the cash advance fee and the higher cash advance APR — you are charged the regular purchase APR instead. For a small money order bought and paid off quickly, this can save you $20 to $30 compared to the cash advance route.
Why banks and post offices will not take credit cards
The U.S. Postal Service, most banks, and most check-cashing services have explicit policies against accepting credit cards for money orders. The reason is chargeback liability.
When you dispute a credit card charge, the card issuer investigates and can reverse the transaction. The seller must then refund the money. For a money order, the seller has already handed you a cash-equivalent instrument — they cannot get it back if you later dispute the charge. They lose both the money order and the cash they paid out.
This risk is real enough that major sellers simply refuse the payment method. It is not a technical limitation — they could accept credit cards if they wanted to. They choose not to because the fraud and chargeback risk outweighs the convenience.
Alternatives that may cost less
If you have a credit card but no cash and need to send money, a money order is often not the cheapest option.
Peer-to-peer payment apps like Venmo, PayPal, Square Cash, or Zelle let you send money directly from your credit card to another person's bank account or card. Most charge no fee if you link a bank account, and a small fee (1 to 3 percent) if you use a credit card. For a $500 transfer, you might pay $5 to $15 — less than the cash advance fee alone.
Wire transfers through your bank cost $15 to $30 but are faster and more secure than a money order, especially for large amounts. You can initiate one online or by phone, and the money arrives the same day or next business day.
ACH transfers (automated clearing house) are free or very cheap through most banks and take one to three business days. If the recipient has a bank account and you are not in a hurry, this is usually the cheapest option.
A money order makes sense when the recipient does not have a bank account or when you need a physical receipt. If those conditions do not apply, one of these alternatives will likely save you money.
What happens if you buy a money order and do not pay your credit card bill
If you buy a money order with a credit card and do not pay the balance by the due date, the purchase will be treated like any other credit card charge. Interest will accrue at your regular purchase APR, and the balance will grow each month until you pay it off.
The money order itself does not change — it is still a valid instrument that can be cashed or deposited. But your credit card debt will continue to cost you money in interest. If you are considering buying a money order on credit, make sure you have a plan to pay the card balance off quickly. Otherwise, the interest will exceed the cost of the money order many times over.
Frequently Asked Questions
Can I use a credit card to buy a money order at Walmart?
Some Walmart locations accept credit cards for money orders, but not all. Call the specific store before you go to confirm. If they do accept it, you will pay the regular purchase APR on the charge, not a higher cash advance rate, which saves you money compared to withdrawing cash.
What is the cheapest way to send money if I only have a credit card?
A peer-to-peer app like Venmo or PayPal is usually cheaper than a money order. If you link a bank account, there is no fee. If you use the credit card directly, the fee is typically 1 to 3 percent — much less than the 3 to 5 percent cash advance fee plus ATM fees plus interest.
Will my credit card issuer let me dispute a money order purchase?
You can attempt to dispute any credit card charge, but disputing a money order is difficult. Once the money order is issued, the seller has no way to reverse it. Your issuer will likely deny the dispute unless you can prove fraud or that the seller never issued the money order at all.
Does buying a money order with a credit card hurt my credit score?
Buying a money order itself does not hurt your score. But if you carry a balance on the credit card, the interest charges will increase your debt, which can raise your credit utilization ratio and lower your score over time. Paying the balance in full by the due date avoids this.
Can I use a credit card cash advance to buy a money order at the post office?
Yes, you can withdraw cash using a credit card and then buy a money order with that cash at any post office. But this is expensive: you will pay a 3 to 5 percent cash advance fee, an ATM fee, and interest at a higher rate than your purchase APR, starting immediately.