You can buy a money order with a credit card, but most sellers treat it as a cash advance
Most places that sell money orders—post offices, grocery stores, check-cashing shops, and Walmart—will accept a credit card. However, your credit card company will likely classify the purchase as a cash advance, not a regular purchase. This matters because cash advances carry higher fees and interest rates than normal charges.
A cash advance fee typically runs 3% to 5% of the amount you're borrowing, charged when ready. Interest starts accruing right away—there's no grace period like you get with regular purchases. If you're buying a $500 money order with a credit card, you might pay $15 to $25 just in fees, plus daily interest until you pay the balance.
Some credit card companies block cash advances entirely, or set a lower limit on how much you can take as a cash advance than your overall credit limit. Check your card's terms or call the number on the back before you go to the store.
Key Takeaways
- Money order purchases with a credit card are treated as cash advances, which charge higher fees and interest than regular purchases.
- Cash advance fees range from 3% to 5% of the amount and start charging interest when ready with no grace period.
- Your credit card may have a separate, lower cash advance limit than your spending limit.
- Debit cards, bank transfers, and cash are cheaper ways to pay for a money order if you have access to them.
Where you can and cannot use a credit card for a money order
The U.S. Postal Service accepts credit cards at post office windows and through their website (usps.com). Western Union and MoneyGram, which sell money orders at thousands of retail locations, also take credit cards in person and online. Walmart, grocery store chains, and check-cashing outlets vary—some accept credit cards for money orders, others do not.
Call ahead or ask at the counter before you go. If the location does accept credit cards, confirm whether they treat it as a cash advance. Some smaller retailers may not process it that way, though your credit card company still might.
Online money order services like PayPal and Square Cash let you send money directly without a physical money order, and they may not charge cash advance fees for those transfers. If you need a paper money order specifically, the post office website is the most straightforward option.
Why cash advances cost more than regular credit card purchases
A regular purchase on your credit card has a grace period—usually 21 to 25 days—where you pay no interest if you pay the full balance by the due date. Cash advances skip this entirely. Interest starts the day you take the money, at a rate that's often 5% to 10% higher than your purchase APR.
The fee itself is separate from interest. A $500 money order with a 5% cash advance fee costs you $25 when ready. If you carry that balance for a month at a 25% cash advance APR, you'll owe another $10 in interest. Over three months, interest alone could reach $30.
Because of these costs, using a credit card for a money order only makes sense if you have no other way to pay and you can pay off the balance within days.
Cheaper ways to send or receive money
If you have a debit card, use that instead. Debit card purchases don't trigger cash advance fees because you're spending money you already have. Most places that sell money orders accept debit cards the same way they accept credit cards.
Bank transfers and wire transfers through your own bank are often free or cost $15 to $30, with no interest. They're faster than money orders and don't require you to go anywhere. If the person receiving the money has a bank account, a transfer is usually the cheapest option.
Peer-to-peer payment apps like Venmo, PayPal, and Cash App let you send money when ready for free (or a small fee if you want it in your bank account when ready). These work best for smaller amounts and when both people have the app.
If you need a physical money order and have no debit card, paying cash at a post office or grocery store costs only the money order fee itself—usually $1 to $3—with no interest or cash advance charges.
How to minimize fees if you must use a credit card
Pay the balance when ready. The moment the money order clears or you know you won't need to dispute it, pay off the cash advance in full. Every day you carry the balance costs you interest on top of the upfront fee.
Use a card with the lowest cash advance APR you have access to. If you have multiple credit cards, check which one charges the lowest rate for cash advances. The difference between a 20% APR and a 25% APR saves you real money over even a short period.
Buy the smallest money order amount you actually need. The fee is a percentage, so a $200 money order costs less in fees than a $500 one. If you're sending $250, don't buy a $500 money order to have extra on hand.
Ask whether the seller will accept a different payment method. Some locations that normally don't take credit cards for money orders will make exceptions if you ask. It never hurts to inquire.
What happens to your credit score when you take a cash advance
Taking a cash advance doesn't directly hurt your credit score, but it can indirectly. Your credit utilization—the percentage of your available credit you're using—goes up when ready. If you have a $5,000 credit limit and take a $500 cash advance, your utilization jumps to 10%. High utilization can lower your score slightly.
The bigger risk is carrying the balance. If you don't pay it off quickly, the interest charges add up and you may miss a payment, which damages your score much more than the cash advance itself.
The cash advance shows up on your credit report as a separate transaction type, which lenders can see. It signals that you needed cash urgently, which some lenders view as a sign of financial stress. This won't block you from borrowing, but it's another reason to avoid cash advances when you have other options.
Frequently Asked Questions
Will my credit card company let me take a cash advance for a money order?
Most will, but not all. Some cards have cash advance limits lower than your spending limit, and a few block cash advances entirely. Call the number on your card or log into your account online to check your cash advance limit before you try to buy a money order.
Can I use a credit card to buy a money order online?
Yes, the U.S. Postal Service and Western Union both let you order money orders online with a credit card. You'll still be charged a cash advance fee and interest, so the same cost applies whether you buy in person or online.
Is there a limit to how much I can spend on a money order with a credit card?
Your credit card's cash advance limit applies, which is often lower than your regular spending limit. Individual money orders also have limits—the post office caps them at $1,000, and most retailers cap them at $500 to $1,000. You may need to buy multiple money orders if you're sending a large amount.
What if I can't pay off the cash advance right away?
The interest will keep accruing daily until you pay it off. If a $500 cash advance sits for three months at a 25% APR, you'll owe roughly $30 in interest on top of the original fee. Pay as much as you can as soon as you can to minimize the total cost.
Is a money order safer than sending cash through the mail?
Yes. A money order is traceable and can be replaced if it's lost or stolen, while cash cannot. However, the safety benefit doesn't change the fact that using a credit card to buy one is expensive. If safety is your concern, a bank transfer or wire is both safer and cheaper.