Most money order sellers won't take credit cards directly, but you have workarounds
You cannot walk into a Western Union, MoneyGram, or post office and hand over a credit card to buy a money order. These sellers treat money orders as cash equivalents and require payment in cash, debit card, or bank transfer only. The reason is straightforward: a money order is a may provide payment, and the seller needs to know the money is actually there before they issue it. A credit card is a loan, not a deposit, so they won't accept it.
That said, you have three real paths forward if you want to use your credit card to fund a money order. You can withdraw cash from an ATM using your card, transfer money from your credit card to a bank account and then pay from that account, or use a third-party payment service that accepts credit cards and then use that service's balance to buy the money order. Each route has different costs and timelines.
Key Takeaways
- Money order sellers—post offices, Western Union, MoneyGram—do not accept credit cards as direct payment because money orders are cash equivalents.
- Using an ATM to withdraw cash with your credit card costs a cash advance fee (typically 3–5% of the amount) plus daily interest starting immediately.
- Transferring credit card balance to a bank account through a third-party service like PayPal or Square Cash may carry transfer fees but avoids the daily interest of a cash advance.
- Some banks allow you to pay a money order bill directly from a credit card if the seller accepts online bill payment, though this is rare for money orders specifically.
- The cheapest option is usually to use a debit card or bank account directly if you have one, since neither charges a cash advance fee or transfer fee.
Why money order sellers reject credit cards
A money order is a prepaid instrument. The seller collects your money first, then issues the order. They need certainty that the payment is final and irreversible. A credit card transaction is reversible—you can dispute it, the charge can be reversed, or the card can be declined days later. That uncertainty makes credit cards unsuitable for the seller's risk model.
Additionally, money order sellers are regulated financial institutions or government agencies (the U.S. Postal Service, for example). They have strict rules about what forms of payment they can accept, and credit cards fall outside those rules. Western Union and MoneyGram have the same policy across all their locations because it is built into their operating procedures.
Using an ATM cash advance to buy a money order
The simplest workaround is to withdraw cash from an ATM using your credit card, then use that cash to buy the money order. Most credit cards allow ATM withdrawals, though not all. Check your card's terms or call the issuer to confirm your card supports cash advances.
The cost is significant. A cash advance fee typically runs 3% to 5% of the amount withdrawn, with a minimum fee of $5 to $10. On a $500 withdrawal, expect to pay $15 to $25 in fees alone. More importantly, interest on a cash advance starts accruing immediately—there is no grace period like there is for purchases. The interest rate is also usually higher than your purchase APR, often 2% to 3% above it. If you carry the balance for a month, the interest cost can exceed the fee.
This route makes sense only if you can pay back the cash advance within a few days, before interest compounds. If you need the money order urgently and have no other way to fund it, the fee is the price of speed.
Transferring credit card balance to a bank account
A second option is to move money from your credit card to a bank account, then pay for the money order from that account. This avoids the daily interest of a cash advance but introduces a transfer fee and a waiting period.
Services like PayPal, Square Cash, Venmo, and some banks themselves allow you to transfer a credit card balance to a linked bank account. PayPal charges 1.5% to 2.5% for this service. Square Cash charges 1.5%. Some banks offer balance transfers to their own checking accounts at no fee, but this varies by institution—call your bank to ask.
The transfer usually takes 1 to 3 business days to appear in your bank account. Once the money is there, you can use your debit card or write a check to buy the money order. You will pay interest on the transferred balance if you do not pay it off quickly, but the interest rate is your standard purchase APR, not the higher cash advance rate.
This route is cheaper than a cash advance if the transfer fee is low and you pay off the balance within a month. It is slower, but it avoids the compounding daily interest of a cash advance.
Paying a money order bill through bill pay
Some banks and credit card issuers offer online bill payment services that let you pay bills directly from your credit card account. If the money order seller accepts bill payments (which is rare), you could theoretically set up a payment this way.
In practice, this almost never works for money orders. Bill pay is designed for recurring bills like utilities, insurance, and loan payments. Money order sellers do not have billing accounts set up to receive bill payments. The post office, Western Union, and MoneyGram do not participate in bill pay networks.
The exception is if you owe someone money and they are willing to accept a money order as payment. In that case, you might be able to send them a bill payment directly from your credit card issuer. But this requires the recipient to be set up in the bill pay system, which is uncommon.
Comparing the cost of each method
| Method | Upfront Fee | Interest Rate | Timeline | Best For |
|---|---|---|---|---|
| ATM cash advance | 3–5% ($15–$25 on $500) | Higher APR, starts immediately | Same day | Urgent need, paid back within days |
| Balance transfer to bank account | 1.5–2.5% ($7.50–$12.50 on $500) | Standard APR, if balance carried | 1–3 business days | Lower cost, can wait a few days |
| Debit card or bank account (no credit card) | None | None | Same day | Cheapest option if available |
When you should avoid using credit for a money order
If you are using a credit card to fund a money order because you do not have cash or a bank account, pause and reconsider the full cost. A $500 money order funded by a cash advance will cost you $15 to $25 in fees, plus interest if you do not pay it back within a week. Over a month, the total cost can reach $40 to $60. That is real money.
If the money order is for a bill or debt payment, check whether the creditor accepts credit card payments directly. Many do, and you will avoid the money order fee and the credit card fee entirely. If the money order is for a landlord, utility company, or government agency, call them first and ask what payment methods they accept.
If you do not have a bank account, consider opening one before you need a money order. Most banks offer free checking accounts with no minimum balance. A bank account costs nothing and gives you access to cheaper payment methods than credit cards.
Frequently Asked Questions
Can I use a prepaid credit card to buy a money order?
No. Prepaid cards are still credit cards in the seller's view—they are not cash or a debit card tied to a bank account. Money order sellers will reject them for the same reason they reject regular credit cards. However, some prepaid cards let you withdraw cash at ATMs, which you can then use to buy a money order, though you will pay an ATM fee on top of the cash advance fee.
What if I use my credit card to pay someone who then buys the money order?
That works, but it is an extra step and introduces another person into the transaction. If you pay someone $500 via credit card and they buy a money order with cash, you have paid the credit card interest or fees but avoided the money order seller's rejection. This only makes sense if the other person is willing and available to do this for you.
Do any money order sellers accept credit cards online?
Western Union and MoneyGram both offer online money order services, and both accept credit cards for online purchases. You pay the fee and the amount online with your credit card, and the money order is either mailed to you or held for pickup. This is the only mainstream way to buy a money order with a credit card directly. Check their websites for current fees and delivery times.
Will paying for a money order with a credit card hurt my credit score?
A cash advance will increase your credit utilization (the percentage of your credit limit you are using), which can lower your score slightly. A balance transfer has the same effect. The impact is usually small and temporary if you pay the balance off quickly. However, if you carry the balance for months, the lower score can affect your ability to borrow at good rates.
Is there a limit to how much I can withdraw as a cash advance?
Yes. Most credit cards set a cash advance limit that is lower than your credit limit—often 20% to 50% of your total limit. Your card issuer will tell you your cash advance limit if you call or check your online account. Some cards do not allow cash advances at all.