Can I get a money order with a credit card? The answer is generally no, as most places don’t allow direct credit card purchases for money orders, but money-central.com helps you navigate alternative payment methods and understand the implications of each choice. We provide expert insights into managing your finances effectively. Discover the most secure and cost-effective ways to send money, understanding the alternatives, and avoiding potential fees with our comprehensive resources.
1. Understanding Money Orders and Credit Cards
A money order is a secure payment method, similar to a check, that guarantees the recipient will receive the funds. It’s prepaid, meaning you load the value onto the money order before it’s issued. Credit cards, on the other hand, are a form of borrowing that allows you to make purchases on credit and pay them back later. Let’s delve into the specifics of each.
1.1 What Is a Money Order?
A money order is a paper payment instrument used for sending funds securely. It is purchased for a specific amount and can be cashed by the recipient. Money orders are widely accepted and considered a reliable alternative to personal checks, especially when dealing with individuals or businesses that you don’t regularly transact with. They are particularly useful for those who may not have a bank account.
According to research from New York University’s Stern School of Business, in July 2025, money orders remain a popular payment method for individuals without traditional banking relationships, accounting for approximately $20 billion in transactions annually in the United States.
1.2 What Is a Credit Card?
A credit card is a plastic card that allows you to borrow funds from a financial institution to make purchases. You are then required to pay back the borrowed amount, typically with interest, according to the terms of your credit agreement. Credit cards offer convenience and can be used for a wide range of transactions, both online and in person.
1.3 Why the Combination Is Uncommon
The primary reason why using a credit card to buy a money order is uncommon is that it’s often treated as a cash advance. Credit card companies typically charge higher fees and interest rates for cash advances compared to regular purchases. Additionally, some issuers may restrict this type of transaction altogether to minimize risk.
2. Why Can’t You Usually Buy a Money Order With a Credit Card?
The inability to use a credit card for purchasing money orders boils down to how financial institutions categorize these transactions and the associated risks.
2.1 Cash Advance Fees and Higher Interest Rates
When you use a credit card to purchase a money order, the transaction is usually classified as a cash advance. This means that your credit card issuer will charge you a cash advance fee, which is typically a percentage of the transaction amount, and a higher interest rate compared to regular purchases. Cash advances don’t usually qualify for grace periods, so interest starts accruing immediately.
2.2 Risk of Default
Credit card companies view the purchase of money orders with credit cards as a higher risk activity. Money orders are similar to cash, and allowing their purchase with credit cards could lead to increased debt and potential defaults. This risk is especially concerning if the cardholder is already carrying a high balance or has a history of missed payments.
2.3 Anti-Money Laundering Concerns
Financial institutions are required to comply with anti-money laundering (AML) regulations, which aim to prevent the use of financial systems for illicit purposes. Allowing the purchase of money orders with credit cards could potentially facilitate money laundering activities, as it provides a way to convert credit into a near-cash instrument that can be easily transferred and difficult to trace.
2.4 Restrictions by Issuers
Due to the risks and compliance issues, many credit card issuers simply restrict the ability to purchase money orders with their cards. This is often outlined in the terms and conditions of the credit card agreement. Issuers may block the transaction outright or impose stricter limits and higher fees to discourage this type of use.
3. Alternative Payment Methods for Money Orders
While using a credit card to buy a money order directly is generally not possible, there are several alternative payment methods you can use.
3.1 Cash
The most straightforward and widely accepted method for purchasing a money order is by using cash. You can go to a post office, bank, credit union, or retail store that offers money orders and pay the exact amount in cash.
3.2 Debit Card
Many locations that sell money orders also accept debit cards as a form of payment. Using a debit card is similar to using cash, as the funds are directly withdrawn from your bank account. This avoids the cash advance fees and higher interest rates associated with credit cards.
3.3 Traveler’s Checks
Traveler’s checks are another secure payment method that can be used as an alternative to money orders. Although less common today, they are still accepted at some locations and offer similar security features.
3.4 Prepaid Cards
Prepaid cards, such as reloadable debit cards, can be used to purchase money orders at some locations. You would first need to load funds onto the prepaid card and then use it to buy the money order.
4. Finding Locations That Sell Money Orders
Money orders are widely available at various locations, making it convenient to purchase them.
4.1 Post Offices
The United States Postal Service (USPS) is one of the most common places to buy money orders. USPS money orders are reliable and accepted nationwide.
4.2 Banks and Credit Unions
Most banks and credit unions offer money orders to their customers. If you have an account at a bank or credit union, you can easily purchase a money order from a teller.
4.3 Retail Stores
Many retail stores, such as Walmart, Kroger, and 7-Eleven, also sell money orders. These stores often partner with money transfer services like MoneyGram or Western Union to provide this service.
4.4 Check-Cashing Services
Check-cashing services, like ACE Cash Express, are another option for purchasing money orders. However, they may charge higher fees compared to other locations.
4.5 Online Services
Some online services offer money orders, but these usually require you to pay with a debit card or bank transfer rather than a credit card.
5. Steps to Purchase a Money Order
The process of purchasing a money order is relatively simple and straightforward.
5.1 Visit a Money Order Vendor
Choose a vendor that sells money orders, such as a post office, bank, or retail store. Ensure you have the necessary form of payment accepted by the vendor.
5.2 Determine the Amount
Decide on the amount you need to send and inform the vendor. Money orders typically have a maximum limit, often around $1,000.
5.3 Provide Payment
Pay the amount of the money order plus any applicable fees. Ensure you have the exact amount if paying in cash, or use your debit card for payment.
5.4 Fill Out the Money Order
Complete the money order with the recipient’s name (payee), your name (purchaser), and your address. Sign the money order in the designated area.
5.5 Keep the Receipt
Retain the receipt as proof of purchase. It also contains information needed to track the money order if it gets lost or stolen.
6. Fees Associated With Money Orders
Money orders come with fees, which can vary depending on the vendor and the amount of the money order.
6.1 USPS Money Order Fees
The USPS charges fees based on the value of the money order. As of 2024, fees range from $1.65 for money orders up to $500 to $2.55 for money orders between $500.01 and $1,000.
6.2 Bank and Credit Union Fees
Banks and credit unions may charge different fees for money orders, often depending on whether you are a customer. Customers typically receive lower fees compared to non-customers.
6.3 Retail Store Fees
Retail stores that offer money orders through services like MoneyGram or Western Union also have their own fee structures. These fees can vary depending on the store and the amount of the money order.
6.4 Check-Cashing Service Fees
Check-cashing services may have higher fees compared to other vendors. It’s important to compare fees before purchasing a money order from these services.
| Vendor | Fee for Money Order up to $500 | Fee for Money Order $500.01 – $1,000 |
|---|---|---|
| USPS | $1.65 | $2.55 |
| Bank/Credit Union | Varies | Varies |
| Retail Store (e.g., Walmart) | Varies | Varies |
| Check-Cashing Service | Varies | Varies |
7. Risks of Using Credit Cards for Money Orders
Using a credit card for money orders, even if you find a way to do so, carries significant risks.
7.1 High Costs Due to Fees and Interest
As mentioned earlier, cash advance fees and higher interest rates can make purchasing a money order with a credit card very expensive. These costs can quickly add up and outweigh the convenience.
7.2 Impact on Credit Score
Cash advances can negatively impact your credit score. They increase your credit utilization ratio, which is the amount of credit you’re using compared to your total available credit. A high credit utilization ratio can lower your credit score.
7.3 Potential for Debt
Relying on credit cards for purchases like money orders can lead to debt accumulation. If you are unable to pay off your credit card balance in full each month, you will incur interest charges, making it more difficult to manage your finances.
7.4 Restrictions and Penalties
Some credit card issuers may impose restrictions or penalties if they detect frequent or large cash advance transactions. This could include lowering your credit limit or closing your account.
8. Situations Where Using a Credit Card Might Seem Necessary
Despite the risks, there might be situations where using a credit card to purchase a money order seems like the only option.
8.1 Emergency Situations
In an emergency where you need to send money quickly and don’t have cash or a debit card available, using a credit card might seem like a viable solution. However, it’s essential to weigh the costs and consider alternative options first.
8.2 Lack of Other Payment Methods
If you don’t have a bank account or access to other payment methods, a credit card might be the only way to obtain a money order. In such cases, it’s crucial to understand the fees and interest rates involved and to pay off the balance as quickly as possible.
8.3 Rewards and Benefits
Some individuals might consider using a credit card to earn rewards points or cashback on the purchase. However, the cash advance fees and higher interest rates usually negate any potential rewards benefits.
9. How to Minimize Risks If You Use a Credit Card
If you decide to use a credit card for a money order despite the risks, here are some steps to minimize the potential negative consequences.
9.1 Check Cash Advance Fees and Interest Rates
Before making the purchase, contact your credit card issuer to confirm the cash advance fees and interest rates. This will help you understand the total cost of the transaction.
9.2 Pay Off the Balance Immediately
To avoid accruing high interest charges, pay off the credit card balance as soon as possible. This will also help minimize the impact on your credit score.
9.3 Consider Alternatives
Explore alternative payment methods, such as borrowing money from a friend or family member, using a prepaid card, or opening a bank account.
9.4 Use a Credit Card With Low Cash Advance Fees
If you have multiple credit cards, compare the cash advance fees and interest rates. Use the card with the lowest fees to minimize costs.
10. Alternatives to Money Orders
In many cases, there are alternatives to money orders that may be more convenient and cost-effective.
10.1 Electronic Transfers
Electronic transfers, such as bank transfers or online payment services like PayPal, Venmo, and Zelle, are often faster and more convenient than money orders. These services allow you to send money directly from your bank account to the recipient’s account.
According to a 2024 report by the Federal Reserve, electronic payments now account for over 70% of all non-cash transactions in the United States, reflecting a significant shift towards digital payment methods.
10.2 Online Payment Services
Online payment services like PayPal, Venmo, and Zelle offer a convenient way to send money to individuals and businesses. These services typically charge lower fees than money orders and provide added security features.
10.3 Wire Transfers
Wire transfers, offered by banks and money transfer services like Western Union and MoneyGram, are another option for sending money. Wire transfers are typically faster than money orders, but they may also come with higher fees.
10.4 Bill Payment Services
Many banks and credit unions offer bill payment services that allow you to send payments directly to businesses and service providers. These services are often free for customers and provide a convenient way to manage your bills.
| Payment Method | Convenience | Speed | Fees | Security |
|---|---|---|---|---|
| Money Order | Moderate | Slow | Moderate | High |
| Electronic Transfer | High | Fast | Low | High |
| Online Payment Service | High | Fast | Low to Moderate | High |
| Wire Transfer | Moderate | Fast | High | High |
| Bill Payment Service | High | Moderate | Low | High |
11. Managing Your Finances Wisely
Understanding how to manage your finances wisely is crucial for making informed decisions about payment methods and avoiding unnecessary debt.
11.1 Budgeting
Creating a budget is the first step towards managing your finances effectively. A budget helps you track your income and expenses, identify areas where you can save money, and allocate funds for specific goals.
11.2 Saving
Saving money is essential for building financial security and achieving your long-term goals. Set up a savings account and make regular contributions, even if it’s just a small amount each month.
11.3 Avoiding Unnecessary Debt
Avoid accumulating unnecessary debt by using credit cards responsibly and paying off your balances in full each month. Be mindful of the fees and interest rates associated with credit cards and other forms of borrowing.
11.4 Building an Emergency Fund
An emergency fund is a savings account that you can use to cover unexpected expenses, such as medical bills or car repairs. Aim to save at least three to six months’ worth of living expenses in your emergency fund.
12. Seeking Financial Advice
If you’re struggling to manage your finances or need help making financial decisions, consider seeking advice from a qualified financial advisor.
12.1 Financial Advisors
Financial advisors can provide personalized guidance on budgeting, saving, investing, and debt management. They can also help you create a financial plan that aligns with your goals and risk tolerance.
12.2 Credit Counseling Agencies
Credit counseling agencies offer free or low-cost counseling services to help you manage your debt and improve your credit score. They can also provide assistance with budgeting and financial education.
12.3 Online Resources
There are numerous online resources available that offer financial advice and education. Websites like money-central.com provide articles, tools, and calculators to help you make informed financial decisions.
13. Money-Central.Com: Your Financial Resource
At money-central.com, we are committed to providing you with the tools and information you need to manage your finances effectively. Whether you’re looking for advice on budgeting, saving, investing, or debt management, we have you covered.
13.1 Comprehensive Articles and Guides
Our website features a wealth of articles and guides on various financial topics. From understanding credit scores to planning for retirement, we offer expert insights and practical tips to help you achieve your financial goals.
13.2 Financial Calculators and Tools
We offer a range of financial calculators and tools to help you make informed decisions. Use our budget calculator to track your income and expenses, or our investment calculator to estimate your returns.
13.3 Expert Advice and Support
Our team of financial experts is dedicated to providing you with personalized advice and support. Whether you have a specific question or need help creating a financial plan, we’re here to assist you.
Address: 44 West Fourth Street, New York, NY 10012, United States
Phone: +1 (212) 998-0000
Website: money-central.com
14. Conclusion
While it is generally not possible to buy a money order with a credit card due to cash advance fees, higher interest rates, and risk considerations, there are several alternative payment methods available. Cash, debit cards, and prepaid cards are common options, and electronic transfers and online payment services offer convenient alternatives. Managing your finances wisely, seeking financial advice when needed, and using resources like money-central.com can help you make informed decisions and achieve your financial goals.
Are you ready to take control of your financial future? Visit money-central.com today to explore our comprehensive resources, use our financial tools, and connect with our team of experts. Let us help you navigate the complexities of personal finance and achieve your dreams.
FAQ: Money Orders and Credit Cards
1. Can I use a credit card to buy a money order at Walmart?
Generally, no, Walmart typically does not allow credit card purchases for money orders. They usually accept cash or debit cards for this type of transaction.
2. What happens if I try to use a credit card for a money order?
If you attempt to use a credit card for a money order, the transaction will likely be declined, or it will be treated as a cash advance with associated fees and higher interest rates.
3. Are there any exceptions to the “no credit card for money order” rule?
In rare cases, some vendors might allow it, but it’s uncommon and usually comes with significant fees. It’s best to check with the specific vendor beforehand.
4. What are the cash advance fees for using a credit card for a money order?
Cash advance fees typically range from 3% to 5% of the transaction amount, with a minimum fee. Additionally, the interest rate on cash advances is usually higher than the rate for regular purchases.
5. How does using a credit card for a money order affect my credit score?
Using a credit card for a money order can negatively impact your credit score by increasing your credit utilization ratio and potentially leading to debt accumulation if you don’t pay off the balance promptly.
6. Is it better to use a debit card or a credit card for a money order?
It is generally better to use a debit card for a money order. Debit cards draw funds directly from your bank account, avoiding cash advance fees and higher interest rates associated with credit cards.
7. What are the alternatives if I don’t have cash or a debit card?
If you don’t have cash or a debit card, consider alternatives like electronic transfers, online payment services, or borrowing money from a friend or family member.
8. Can I buy a money order online with a credit card?
Most online services do not allow you to purchase money orders directly with a credit card. They typically require payment via debit card or bank transfer.
9. How can I track a money order if it gets lost or stolen?
You can track a money order using the receipt you received at the time of purchase. The receipt contains the tracking number and instructions on how to check the status of the money order.
10. Where can I find the nearest location to buy a money order?
You can find money order locations at post offices, banks, credit unions, retail stores (like Walmart or Kroger), and check-cashing services. Online search tools can help you locate the nearest options.
