Most places that sell money orders won't take credit cards directly
You cannot walk into a Western Union or MoneyGram location and hand them a credit card to buy a money order. The same goes for banks, post offices, and grocery store money order counters — they accept cash, debit cards, and sometimes checks, but not credit cards.
The workaround exists, but it requires a step in between. You use your credit card to get cash first, then use that cash to buy the money order. The two main routes are a cash advance from an ATM or a debit card funded by your credit card balance.
This matters because each route carries different costs. A cash advance charges a fee (usually 3 to 5 percent of the amount) plus interest that starts accruing immediately. A debit card funded by credit costs nothing upfront but ties up your credit limit and counts as a balance transfer on your credit report.
Key Takeaways
- Credit cards cannot be used directly at money order counters; you must convert credit to cash first.
- A cash advance from an ATM costs 3 to 5 percent plus immediate interest, making it expensive for small amounts.
- Some credit card issuers offer a debit card linked to your credit line, which lets you withdraw cash or pay merchants without a cash advance fee.
- Prepaid cards funded with a credit card can sometimes be used at money order counters, though policies vary by location.
- The cheapest option is usually to use a debit card connected to a checking account, not a credit card at all.
Cash advances: the direct route and the expensive one
A cash advance is the most straightforward way to turn credit into cash. You go to an ATM that accepts your card, withdraw money, and then use that cash to buy a money order at any location that sells them.
The cost is immediate and steep. Your credit card issuer charges a cash advance fee, typically 3 to 5 percent of the amount withdrawn. So a $500 cash advance costs $15 to $25 just to get the money out. On top of that, interest begins accruing the same day — there is no grace period like there is for purchases. The interest rate on cash advances is also usually higher than your regular purchase APR, sometimes 2 to 3 percentage points above it.
For a $500 money order, you would pay the cash advance fee plus interest on $500 from the day you withdraw it until you pay off the balance. That makes a cash advance practical only if you need the money order urgently and have no other option.
Credit card debit cards: avoiding the cash advance fee
Some credit card issuers, including American Express and Discover, offer a debit card linked directly to your credit line. This card works like a regular debit card at ATMs and merchants, but the money comes from your credit balance instead of a bank account.
The advantage is that withdrawing cash this way does not trigger a cash advance fee or immediate interest. You are simply spending your available credit, the same as you would on a purchase. The disadvantage is that you are still using your credit limit and the transaction still appears on your credit report as a cash-like withdrawal, which can affect your credit score slightly.
Check your credit card's terms or call the issuer to find out whether this option is available to you. Not all cards offer it, and availability depends on your account status and credit history.
Prepaid cards funded with a credit card
Some prepaid card companies let you load money using a credit card. Once the prepaid card is funded, you can use it like a debit card at money order counters that accept card payments.
The catch is that most traditional money order locations — Western Union, MoneyGram, post offices, and banks — do not accept prepaid cards. They want cash or a debit card tied to a bank account. A few grocery store chains and independent check-cashing services may accept prepaid cards, but you would need to call ahead to confirm.
This route is also more expensive than it appears. Prepaid cards charge monthly fees, loading fees, or both. By the time you add those costs to the money order fee itself, you have spent more than you would have with a cash advance.
Why your credit card issuer blocks direct payment
Money order sellers refuse credit cards because they are protecting themselves from fraud and chargebacks. A money order is a negotiable instrument — once it is issued, it is nearly impossible to reverse. If someone uses a stolen credit card to buy a money order, the cardholder can dispute the charge, but the money order is already in someone else's hands.
Banks and post offices also have agreements with payment networks that restrict how they can accept payment. Federal regulations around money transmission add another layer of restriction. The result is that cash and debit-only policies are standard across the industry.
Comparing the actual costs of each method
| Method | Upfront Cost | Interest or Additional Fees | Best For |
|---|---|---|---|
| Cash advance at ATM | 3–5% of amount withdrawn | Interest starts immediately at higher APR | Emergency only; very expensive for amounts under $1,000 |
| Credit card debit card | None | Interest accrues on balance like a purchase | If your issuer offers it and you can pay off quickly |
| Prepaid card funded by credit | Loading fee + monthly fee | Varies; often $5–15 per month | Rarely the cheapest option |
| Debit card from bank account | None | None | Cheapest; available to most people |
The better alternative: use a debit card instead
If you have a checking account, a debit card connected to that account is the simplest and cheapest way to buy a money order. There are no fees, no interest, and no credit limit impact. You walk in with your debit card, buy the money order, and walk out.
If you do not have a checking account, opening one takes about 15 minutes at most banks and credit unions. Many offer accounts with no monthly fee and no minimum balance. This is faster and cheaper than any credit card workaround.
If you are trying to use a credit card because you do not have cash or a debit card available right now, a cash advance is your only direct option — but understand that it is expensive and should be a last resort, not a regular practice.
Frequently Asked Questions
Can I buy a money order online with a credit card?
Some online money order services accept credit cards directly. MoneyGram and Western Union both offer online purchases, though they may require you to pick up the money order in person or have it delivered. Check their websites for current payment methods and fees, which vary by location and service type.
What if I use a credit card to buy a money order and then dispute it?
If you buy a money order with a cash advance and then dispute the charge, the credit card company may reverse the cash advance fee but not the interest already accrued. The money order itself cannot be reversed once issued. Disputes on cash advances are difficult to win because the cash was delivered to you.
Do any money order sellers accept credit cards at all?
A few independent check-cashing services and some smaller retailers may accept credit cards for money orders, but this is rare. Your best bet is to call ahead to any location you plan to visit. Chain locations like Western Union, MoneyGram, USPS, and banks have consistent cash-only or debit-only policies.
Is a money order fee the same everywhere?
No. Post offices charge around $1.45 to $2.00 depending on the amount. Banks typically charge $5 to $10. Western Union and MoneyGram charge $1 to $5 at retail locations. Prices vary by location and the amount of the money order, so ask before you buy.
Can I use a credit card cash advance to buy a money order and then use that money order to pay off the credit card?
Technically yes, but it defeats the purpose. You would pay the cash advance fee and interest to get the cash, then pay the money order fee to convert it back to a form of payment. You end up spending money on fees for no benefit. Pay the credit card directly instead.