Yes, you can use a credit card to buy a money order, but not everywhere and not without costs

Most money order sellers — post offices, grocery stores, Walmart, Western Union locations — will accept a credit card as payment. However, the transaction itself carries a fee (usually $0.50 to $1.50 per money order), and your credit card company will treat the purchase as a cash advance, not a regular purchase. A cash advance means you pay interest immediately, often at a higher rate than your regular APR, and you may also pay a cash advance fee of 3% to 5% of the amount.

The practical result: buying a $500 money order with a credit card could cost you $15 to $50 in fees and interest charges before you even use the money order. For most people, this is more expensive than the alternatives.

Key Takeaways

  • Credit card purchases of money orders are classified as cash advances, which charge higher interest rates and upfront fees than regular purchases.
  • The money order seller charges a separate fee ($0.50 to $1.50), and your credit card company charges a cash advance fee (typically 3% to 5%) plus interest that starts accruing immediately.
  • Debit cards, bank transfers, and cash avoid these fees entirely and should be your first choice if you have access to them.
  • Some sellers (like Walmart and grocery stores) may decline credit cards for money orders even though post offices accept them, so call ahead if you plan to use plastic.

How credit card companies classify money order purchases

When you swipe a credit card at a post office or Western Union to buy a money order, your card issuer sees this as a cash advance, not a regular purchase. This classification happens automatically based on the merchant code the seller uses. You do not have a choice in how it is coded.

A cash advance is treated differently from a normal purchase in three ways. First, you pay a cash advance fee — a percentage of the amount you are withdrawing, usually 3% to 5%. Second, the interest rate on that amount is higher than your regular purchase APR; many cards charge 5% to 10% more on cash advances. Third, interest starts accruing immediately, with no grace period. On a regular purchase, you typically have 21 to 25 days before interest kicks in. On a cash advance, the clock starts the day of the transaction.

Example: A $500 money order with a credit card that charges a 4% cash advance fee and a 25% cash advance APR costs you $20 upfront, plus roughly $3.13 in interest if you pay it back in 30 days. The money order seller may add another $1, bringing your total cost to about $24.

Fees you will pay at the point of sale

The money order seller charges a separate fee for issuing the money order itself. This fee is not controlled by your credit card company — it is set by the seller and varies by location and amount.

Post Office: $1.10 for amounts up to $500; $1.60 for $500.01 to $1,000. These are federal rates and do not change by location.

Walmart: $0.88 for amounts up to $1,000. Walmart accepts debit cards and cash but typically does not accept credit cards for money orders; call your local store to confirm their policy.

Grocery stores (Kroger, Safeway, Albertsons, others): $0.50 to $1.50 depending on the chain and the amount. Some accept credit cards; others do not. Check with your store.

Western Union: $1 to $5 depending on the amount and location. Western Union locations are often inside grocery stores or pharmacies, and their credit card policy varies by location.

These fees are charged regardless of how you pay. They are separate from any cash advance fee your credit card company charges.

Why cash advances cost more than regular purchases

Credit card companies charge more for cash advances because they view them as higher risk. When you buy something, the merchant guarantees the transaction and handles disputes. When you take a cash advance, you have the cash in hand immediately, and the card company has less recourse if something goes wrong.

The higher interest rate reflects this risk. A card with a 20% purchase APR might charge 25% or higher on cash advances. The cash advance fee (3% to 5%) is charged upfront and added to your balance immediately.

Interest accrues daily on the new balance. If you carry the balance for 30 days, you pay roughly one-twelfth of the annual rate. On a $500 cash advance at 25% APR, that is about $10.42 in interest alone, before the cash advance fee.

Cheaper ways to pay for a money order

If you have a debit card, use it. Debit card transactions are not classified as cash advances. You pay only the money order seller's fee — nothing more. A $500 money order costs $1.10 at the post office, period.

If you have a bank account, ask your bank about issuing a cashier's check instead. A cashier's check is similar to a money order but is issued by the bank itself. Many banks issue them free to account holders or charge a flat fee of $5 to $10, regardless of the amount. For large amounts, this is cheaper than a money order.

If you must use a credit card, pay the money order seller in cash and put the cash on the credit card through a different method — for example, by withdrawing cash from an ATM using the card (which is also a cash advance, but at least you avoid the money order seller's fee). This does not save you money; it just moves the fee around.

If you have access to a bank transfer, wire transfer, or peer-to-peer payment app (Venmo, PayPal, Zelle), use that instead. These methods have no fees for most users and no interest charges.

When sellers accept or decline credit cards for money orders

Post offices accept credit cards for money orders at all locations. This is a federal policy and does not vary.

Walmart, grocery stores, and other retailers set their own policies. Many do not accept credit cards for money orders because the transaction is low-margin and the cash advance classification creates complications. Some accept credit cards but only for amounts above a certain threshold. Others accept them without restriction.

The only way to know is to call ahead or ask at the counter. Do not assume a store that accepts credit cards for groceries will accept them for money orders — the policies are often different.

Western Union locations vary by franchise. Some accept credit cards; others do not. Again, call first.

What happens to your credit score

A money order purchase via credit card does not directly hurt your credit score. However, it does increase your credit utilization — the percentage of your available credit that you are using. If you normally use 30% of your $5,000 limit and you take a $500 cash advance, you are now at 40% utilization. High utilization can lower your score by a few points.

The effect is temporary. Once you pay off the cash advance, your utilization drops and your score recovers. But while the balance is outstanding, it counts against you.

A cash advance also does not build credit the way a regular purchase does. It is not reported to credit bureaus as a positive payment history — it is just a balance owed.

Frequently Asked Questions

Will my credit card company deny the money order purchase?

Unlikely, unless you have hit your cash advance limit or your card has fraud protection that flags unusual transactions. Most cards allow cash advances up to a percentage of your credit limit (often 20% to 50%). If you are unsure, call your card issuer before you go to the seller.

Can I avoid the cash advance fee by using a credit card at a different type of seller?

No. Any money order purchase with a credit card is classified as a cash advance by the card issuer, regardless of where you buy it. The merchant code determines the classification, not the store type.

Is a money order purchase the same as a credit card withdrawal at an ATM?

Yes, in terms of fees and interest. Both are cash advances. Both charge an upfront fee (3% to 5%) and a higher interest rate. The only difference is that a money order seller adds an extra fee on top.

What if I pay off the cash advance immediately?

You still pay the cash advance fee upfront. Interest accrues daily, so if you pay it off the next day, you pay one day's worth of interest plus the fee. It is still more expensive than using a debit card or cash.

Can I use a credit card to buy a money order and then use that money order to pay off the credit card?

No. Money orders are not accepted as payment by credit card companies. You would need to deposit the money order into a bank account first, then transfer the funds to your credit card. This adds time and does not save you money — you still pay all the fees.