Most credit card issuers do not let you buy money orders directly, but you have workarounds
You cannot walk into a store, hand a cashier your credit card, and buy a money order the way you would buy groceries. Money orders are treated as cash equivalents — like wire transfers or gambling transactions — and card networks block them to reduce fraud and money laundering. However, you can still get a money order by using your credit card to withdraw cash first, or by using a debit card or prepaid card instead.
The reason for the block matters: when you buy a money order with borrowed money, you are essentially converting a line of credit into cash-like value. Card networks see this as risky. Your card issuer may also charge a cash advance fee — typically 3 to 5 percent of the amount — even if you find a way around the block. That fee hits your account immediately and starts accruing interest right away, unlike a regular purchase.
Key Takeaways
- Credit card networks block money order purchases at most retailers, so you will need to withdraw cash first or use a different payment method.
- Withdrawing cash from an ATM using your credit card counts as a cash advance and triggers a fee (usually 3 to 5 percent) plus immediate interest charges.
- Debit cards, prepaid cards, and bank accounts linked to checking or savings are the simplest ways to buy a money order without extra fees.
- Some money order issuers (Western Union, MoneyGram) may accept credit cards for online orders, but you should confirm the fee structure before proceeding.
- If you use a credit card cash advance to buy a money order, the interest starts accruing immediately — there is no grace period like there is for purchases.
Why credit card companies block money order purchases
Money orders fall into a category called cash equivalents. Other transactions in this category include wire transfers, cryptocurrency purchases, gambling, and casino chips. Card networks (Visa, Mastercard, American Express, Discover) treat these as high-risk because they convert credit into something that cannot be reversed or traced the way a regular purchase can.
From the card issuer's perspective, a money order purchase is a way to turn a credit line into untraceable cash. If you default on your card, the issuer has no way to recover the money order or reverse the transaction. That is why the block exists at the point of sale — the retailer's system simply will not accept your credit card for that transaction type.
Some issuers are stricter than others. A few may block the transaction outright; others may allow it but flag it for review. Your best move is to call your card issuer before you try, especially if you have a legitimate reason (paying rent, sending money to family, replacing a lost check). They can tell you whether your specific card allows it and what fees apply.
Using a credit card cash advance to buy a money order
The most direct workaround is to withdraw cash using your credit card at an ATM, then use that cash to buy the money order. This works, but it is expensive. A cash advance is treated differently from a purchase: the fee is usually 3 to 5 percent of the amount withdrawn, and interest starts accruing immediately at a higher rate than your purchase APR. There is no grace period.
Here is what happens step by step. You insert your credit card into an ATM and select "cash advance." The ATM dispenses the cash and your card issuer records it as a cash advance, not a purchase. Within one to three business days, the fee appears on your statement — if you withdrew $200, you might see a $6 to $10 fee. At the same time, interest begins accruing on the full $200 at your cash advance rate, which is often 2 to 3 percentage points higher than your purchase rate.
If you pay off the cash advance within a few days, the interest charge will be small — maybe 50 cents to a dollar. But if the money sits on your card for a month, you could pay $5 to $10 in interest alone, on top of the upfront fee. For a $200 money order, that is a total cost of $11 to $20 just to convert credit into cash.
Debit cards and prepaid cards as alternatives
If you have a debit card linked to a checking or savings account, use that instead. Debit cards are not subject to the cash equivalent block because they draw from money you already have, not borrowed money. You can walk into any retailer that sells money orders — Western Union, MoneyGram, Walmart, grocery stores, post offices — and pay with your debit card with no extra fees beyond the money order fee itself (usually $1 to $5 depending on the amount).
Prepaid cards work the same way. If you have a reloadable prepaid card (like a NetSpend or Green Dot card), you can use it to buy a money order at any retailer. The transaction will go through because prepaid cards are not credit products — they are spending accounts you load with your own money. No cash advance fee, no interest, no special restrictions.
If you do not have a debit card or prepaid card, you can open one quickly. Most banks offer free checking accounts with a debit card, and prepaid card companies can issue a card within one to three business days if you apply online. This is often faster and cheaper than paying the cash advance fee.
Online money order services and credit card payments
Some money order issuers offer online ordering, and a few accept credit cards. Western Union and MoneyGram both have online platforms where you can send money, though the process is different from buying a physical money order at a store. You enter the recipient's details, select the amount, and pay online. Some of these services do accept credit cards, but you should check the fee structure first.
When you use a credit card for an online money transfer, the issuer may still classify it as a cash equivalent and charge a fee. The fee might be built into the service (Western Union and MoneyGram charge a transfer fee regardless of payment method) or added by your card issuer as a cash advance fee. Call your card issuer before you attempt the transaction to confirm whether they will allow it and what you will be charged.
Online money order services are also slower than buying one in person. A physical money order at a store is ready to use immediately; an online transfer typically takes one to three business days to reach the recipient, and some services hold the funds for verification.
What happens if you try to buy a money order with a credit card
If you attempt to buy a money order with your credit card at a retailer, one of three things will happen. The transaction will be declined at the point of sale, the retailer's system will not even present it as an option, or the transaction will go through but your card issuer will flag it for review and may reverse it later.
If the transaction is declined, the retailer will tell you immediately and you can pay another way. If it goes through but gets reversed, you will see a credit back to your account within one to three business days, but the money order may already have been issued. This creates a mess: the money order is valid, but your card issuer has reversed the charge, and you may be on the hook to the retailer for the amount.
The safest approach is to ask the retailer before you try. Most cashiers know whether their system accepts credit cards for money orders. If it does not, move to your backup plan — withdraw cash, use a debit card, or go to a different retailer that accepts your payment method.
Comparing the cost of different payment methods
| Payment Method | Upfront Fee | Interest or Additional Costs | Total Cost for $200 Money Order |
|---|---|---|---|
| Debit card | $1–$5 (money order fee only) | None | $1–$5 |
| Credit card cash advance | $6–$10 (3–5% fee) | $0.50–$10+ (interest, depending on how long you carry the balance) | $6.50–$20+ |
| Prepaid card | $1–$5 (money order fee only) | None | $1–$5 |
| Online money transfer (credit card) | $5–$15 (service fee) + possible cash advance fee | Interest if balance carries | $5–$25+ |
Frequently Asked Questions
Can I buy a money order with a credit card at Walmart or the post office?
Most Walmart locations and all post offices will not accept credit cards for money orders. They accept debit cards, cash, and sometimes prepaid cards. If you want to use a credit card, you will need to withdraw cash first using an ATM, which triggers a cash advance fee and interest.
Will my credit card issuer charge me a fee if I buy a money order?
If the transaction goes through, your issuer may charge a cash advance fee (3 to 5 percent) and start charging interest immediately. If the transaction is blocked, there is no fee. Call your issuer before you try to confirm their policy.
Is there interest on a money order purchase if I pay my credit card bill in full?
Yes, if you used a cash advance. Cash advances accrue interest from the day of the transaction, with no grace period. Even if you pay the full balance immediately, you will owe a few days of interest. Regular purchases have a grace period, but cash advances do not.
What if I need a money order urgently and do not have a debit card?
Open a prepaid card online — most issuers can activate one within hours and you can load it with your credit card or bank account. Then use the prepaid card to buy the money order. This avoids the cash advance fee and is faster than waiting for a traditional bank account.
Can I use a credit card to send money through Western Union or MoneyGram online?
Some Western Union and MoneyGram online services accept credit cards, but confirm the fee structure first. Your card issuer may still treat it as a cash equivalent and charge a fee, and the service itself charges a transfer fee. Call your card issuer before you proceed.