Can You Buy a Money Order With a Credit Card?

Quick answer

• Generally, you cannot directly purchase a money order with a credit card at most retailers.
• Some third-party services or specific locations might offer this, often with significant fees.
• Using a credit card for a money order is usually treated as a cash advance, incurring high interest and fees.
• It’s often more cost-effective to use cash, a debit card, or a prepaid card.
• Consider the fees and interest rates carefully before attempting to use a credit card.
• Explore alternative payment methods if you don’t have cash on hand.

Who this is for

• Individuals who need to pay someone but lack immediate cash or a debit card.
• People looking for a secure way to send funds when checks or personal payments are not an option.
• Those who might be considering using a credit card for convenience and need to understand the implications.

What to check first (before you act)

Goal and timeline

• What you need to do: Clearly define why you need the money order and when it needs to arrive. Is this for a one-time payment, a recurring bill, or a specific deadline?
• What “good” looks like: You have a clear understanding of the recipient’s requirements and the urgency of the payment.
• Common mistake and how to avoid it: Assuming the payment method is straightforward without confirming the recipient’s acceptable payment types. Always verify if a money order is the correct and preferred method.

Current cash flow

• What you need to do: Review your recent bank statements and budget to understand your available cash. How much readily accessible money do you have?
• What “good” looks like: You have a realistic picture of your liquid assets, allowing you to determine if cash is a viable option.
• Common mistake and how to avoid it: Overestimating your available cash or neglecting to account for upcoming expenses. Track your spending diligently to avoid surprises.

Emergency fund or safety buffer

• What you need to do: Assess if you have an emergency fund. This is money set aside for unexpected expenses, not for routine purchases.
• What “good” looks like: You have a dedicated savings buffer, meaning you don’t need to tap into your emergency fund for this transaction.
• Common mistake and how to avoid it: Using money designated for emergencies for non-essential purchases. Your emergency fund should remain untouched for true emergencies.

Debt and interest rates

• What you need to do: If considering a credit card, understand its current interest rate and any fees associated with cash advances.
• What “good” looks like: You know the precise APR for cash advances on your card, which is often higher than the purchase APR.
• Common mistake and how to avoid it: Not realizing that a money order purchase via credit card is almost always a cash advance. This can trigger immediate interest accrual and higher fees.

Credit impact

• What you need to do: Consider how a cash advance might affect your credit utilization ratio and overall credit score.
• What “good” looks like: You understand that cash advances can increase your credit utilization and potentially lower your score if not managed carefully.
• Common mistake and how to avoid it: Treating a credit card transaction for a money order like a regular purchase. Cash advances are viewed differently by credit bureaus and lenders.

Step-by-step (simple workflow)

1. Determine the Need for a Money Order

• What to do: Confirm that a money order is the required or most appropriate payment method for your situation.
• What “good” looks like: You’ve verified with the recipient that they accept money orders and that it meets their needs.
• Common mistake and how to avoid it: Assuming a money order is the only or best option without confirming. Always ask the recipient about their preferred payment methods.

2. Locate a Money Order Issuer

• What to do: Identify places that sell money orders, such as post offices, major grocery stores, convenience stores, and some financial institutions.
• What “good” looks like: You know of at least one convenient location that offers money orders.
• Common mistake and how to avoid it: Going to a store that doesn’t actually sell money orders. Check the store’s website or call ahead to confirm their services.

3. Check Payment Options at the Issuer

• What to do: Before going, find out what payment methods the specific issuer accepts for money orders.
• What “good” looks like: You know for sure they accept cash and/or debit cards, and if there’s any rare exception for credit cards.
• Common mistake and how to avoid it: Assuming all retailers accept the same payment types. Policies vary widely by store and even by individual branch.

4. Gather Required Information

• What to do: Have the exact amount for the money order and any necessary recipient information (like their name and address, depending on the issuer’s policy).
• What “good” looks like: You have all the details ready to fill out the money order accurately.
• Common mistake and how to avoid it: Making errors on the money order, which can invalidate it or cause delays. Double-check all spellings and amounts.

5. Assess Your Payment Resources

• What to do: Determine if you have sufficient cash or a debit card with enough funds to cover the money order amount and any associated fees.
• What “good” looks like: You have the exact funds readily available through your preferred payment method.
• Common mistake and how to avoid it: Underestimating the total cost, including fees. Always factor in the issuer’s fee for the money order itself.

6. Consider a Prepaid Card (If Available)

• What to do: If cash is limited but you have a prepaid debit card, check if the issuer accepts it.
• What “good” looks like: The prepaid card has sufficient funds and is accepted by the money order vendor.
• Common mistake and how to avoid it: Assuming all prepaid cards work everywhere. Some issuers may have restrictions.

7. Avoid Using a Credit Card for Direct Purchase

• What to do: Understand that directly using a credit card to buy a money order is highly discouraged due to fees and interest.
• What “good” looks like: You’ve opted for a more cost-effective payment method like cash or debit.
• Common mistake and how to avoid it: Proceeding with a credit card purchase without fully understanding the cash advance implications.

8. If a Third-Party Option is Explored (Use Extreme Caution)

• What to do: If you find a rare service that allows credit card purchases, thoroughly research their fees, legitimacy, and risks.
• What “good” looks like: You’ve weighed the exorbitant costs against the perceived convenience and decided against it, or you’ve fully understood and accepted the high risk and cost.
• Common mistake and how to avoid it: Falling for scams or paying excessive fees that negate any benefit. Only use reputable, well-established services, and even then, be wary.

9. Complete the Purchase

• What to do: Pay for the money order with your chosen, cost-effective method (cash, debit, or accepted prepaid card).
• What “good” looks like: You have the money order in hand and a receipt for the transaction.
• Common mistake and how to avoid it: Losing your receipt. This is your proof of purchase and essential if there are any issues with the money order.

10. Secure and Deliver the Money Order

• What to do: Keep the money order in a safe place and send it to the recipient promptly.
• What “good” looks like: The money order reaches the recipient without issues.
• Common mistake and how to avoid it: Mismatched payee information. Ensure the recipient’s name is spelled correctly on the money order.

Common mistakes (and what happens if you ignore them)

| Mistake | What it causes