You usually cannot buy a money order directly with a credit card

Most places that sell money orders — post offices, grocery stores, check-cashing shops, Walmart — do not take credit cards. They want cash or a debit card. This is because money orders are meant to be a safer alternative to cash or checks, and the sellers want to avoid the fees that credit card processors charge them.

If you only have a credit card and need a money order, you have a few real options, but each one costs you something extra. The cheapest route is usually to get cash from an ATM using your credit card, then use that cash to buy the money order. The other routes involve using a service that will buy the money order on your behalf, and those services charge a fee on top of the money order fee itself.

Key Takeaways

  • Most money order sellers do not accept credit cards directly, so you will need to convert your credit card to cash first or use a third-party service.
  • Using an ATM to withdraw cash and then buying a money order with that cash is usually the cheapest option, though ATM fees apply.
  • Some bill payment services and money transfer apps can send funds in ways that function like a money order, but they charge their own fees on top.
  • If you use a credit card cash advance to get the money, expect a higher interest rate and an upfront fee from your card issuer.
  • Paying with a debit card or bank account is always faster and cheaper than using a credit card for money orders.

Getting cash from an ATM to buy a money order

This is the most straightforward path. Use your credit card at an ATM to withdraw cash, then take that cash to a money order seller. The money order itself costs between $0.50 and $3 depending on the amount and where you buy it, and the ATM will charge you a fee — usually $2 to $5 — for using a machine outside your bank's network.

The catch is that an ATM withdrawal with a credit card is called a cash advance, and it is not the same as a regular purchase. Your card issuer will charge you an upfront fee (often 3 to 5 percent of the amount you withdraw) and a higher interest rate that starts accruing immediately — there is no grace period like there is for regular purchases. If you withdraw $200, you might pay $6 to $10 just in the cash advance fee alone, plus the ATM fee, plus the money order fee.

Check your card's terms before you do this. Some cards charge less for cash advances than others, and some have a minimum fee. You can usually find this information in your cardholder agreement or by calling the number on the back of your card.

Using a bill payment service or money transfer app

Some apps and online services let you send money in ways that work like a money order — the recipient gets a physical payment they can cash or deposit. Services like Western Union, MoneyGram, and some bank bill payment systems offer this. You can often pay with a credit card through their website or app.

The downside is that these services charge their own fees on top of any money order fee. A Western Union money transfer might cost $5 to $15 depending on the amount and how fast you need it, and that is separate from any credit card processing fee the service charges. For small amounts, this can be more expensive than the ATM route.

These services are most useful when the person receiving the money needs it sent to a specific location or wants the option to pick it up rather than receive it by mail. If you just need a physical money order to mail to someone, the ATM method is usually cheaper.

Asking the money order seller if they take credit cards

Before you assume they do not, ask. Some sellers have changed their policies, and a few — particularly larger chains or online sellers — do take credit cards now. The US Postal Service does not take credit cards in person at post offices, but some online money order services do exist and will accept credit card payment, though they charge more for the convenience.

If you find an online money order seller that takes credit cards, read the fine print carefully. Some of these services charge $5 to $10 per money order on top of the money order fee itself. That can add up quickly if you need more than one.

Using a prepaid card or reloadable card instead

If you have access to a prepaid card or reloadable debit card, you can load money onto it with your credit card and then use the prepaid card to buy a money order. This avoids the cash advance fee and interest rate, though you may pay a fee to load the prepaid card in the first place.

The fee to load a prepaid card varies widely — some charge $1 to $3 per load, others charge a percentage of the amount. Check the card's fee schedule before you load it. If the load fee is high, this method may not save you money compared to the ATM route.

Why your credit card issuer charges more for cash advances

Credit card companies treat cash advances differently from regular purchases because they see them as riskier. When you buy something with your card, the merchant guarantees the transaction and the card company can dispute it if something goes wrong. When you withdraw cash, there is no merchant protection — the money is in your hands immediately, and the card company has less recourse if you do not pay the bill.

That is why they charge a higher interest rate (often 5 to 10 percentage points above your regular purchase rate) and an upfront fee. They are passing the risk back to you. If you carry a balance on your credit card, the interest on a cash advance can become expensive very quickly.

Frequently Asked Questions

Can I use a credit card to buy a money order online?

Some online money order services accept credit cards, but they charge significantly more than in-person sellers. An online money order might cost $5 to $10 plus the base money order fee, making it the most expensive option. You are usually better off using an ATM to get cash and buying in person.

What if my credit card has no cash advance limit?

Even if your card does not have a separate cash advance limit, your overall credit limit still applies. If you have a $500 limit and try to withdraw $400 in cash, you may only be able to withdraw what leaves room for your regular purchases. Call your card issuer to ask what your cash advance limit is.

Is there a way to avoid the cash advance fee?

Not if you use your credit card at an ATM. The cash advance fee is built into that transaction. Your only way to avoid it is to use a debit card, a bank account, or cash you already have. If you do not have access to any of those, the ATM fee is the cost of using your credit card this way.

Can I use a credit card at Walmart or the post office to buy a money order?

No. Walmart and the US Postal Service do not accept credit cards for money order purchases. You need cash or a debit card. Some grocery stores that sell money orders may accept credit cards, but it is rare — call ahead to ask.

What if I need the money order urgently?

The fastest option is still to use an ATM to get cash and buy the money order in person the same day. Online services are slower because they mail the money order to you or the recipient. If you need same-day payment, an in-person money order is your only choice.