Most money order sellers won't take credit cards directly, but you have workarounds
You cannot walk into a Western Union, MoneyGram, or post office and hand over a credit card to buy a money order. These sellers treat money orders as cash equivalents and require actual cash, debit cards, or bank transfers. The restriction exists because money orders are final — once issued, they cannot be reversed — and credit card companies won't let merchants treat them as regular purchases.
That said, you can still use a credit card to fund a money order. The path just requires an extra step: you get cash from your credit card first, then use that cash to buy the money order. The catch is that cash advances on credit cards come with their own costs and rules.
Key Takeaways
- Western Union, MoneyGram, and the U.S. Postal Service do not accept credit cards for money order purchases — they require cash or a debit card.
- A cash advance from your credit card lets you withdraw cash that you can then use to buy a money order, but the advance charges a fee (usually 3 to 5 percent) plus interest starting immediately.
- Using a debit card to buy the money order directly is cheaper than taking a cash advance, if you have one.
- Some credit card issuers let you transfer funds to a linked bank account, which you can then withdraw as cash or use to buy a money order without a cash advance fee.
How cash advances work and what they cost
A cash advance is a short-term loan against your credit line. You go to an ATM, a bank branch, or a check-cashing service and withdraw cash using your credit card. The issuer charges you a fee upfront — typically 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10 — and then charges interest on the balance from the day you withdraw it, with no grace period.
If you withdraw $500 to buy a money order, you might pay $15 to $25 in fees alone, plus interest accruing daily until you pay the balance back. That interest rate is often higher than your regular purchase APR. For example, if your card charges 24 percent APR on cash advances and you carry the balance for 30 days, you would owe roughly $30 in interest on top of the fee.
The total cost makes a cash advance an expensive way to fund a money order unless you need the cash for other reasons anyway. If you only need the money order, a debit card is almost always cheaper.
Using a debit card instead
If you have a debit card linked to a bank account, that is the simplest and cheapest way to buy a money order. Western Union, MoneyGram, and the post office all accept debit cards. You pay no fee for using the debit card itself, and you only pay the money order fee (which ranges from about $0.50 to $5 depending on the amount and seller).
The only reason to use a credit card at all is if you do not have a debit card or if you want to earn rewards on the transaction. But most credit card issuers classify money order purchases as cash advances anyway, which means they do not earn rewards and trigger the cash advance fee.
Balance transfers and account funding as alternatives
Some credit card issuers offer balance transfer checks or allow you to transfer your credit line balance directly to a linked bank account. If your card offers account funding, you can transfer money to your checking account and then withdraw it as cash or use a debit card to buy the money order.
Check your card's terms or call the issuer to ask whether account funding is available. If it is, the fee structure may be different from a cash advance — some issuers charge a flat fee or a lower percentage. Even so, you will still pay a fee and interest, so this option is only worth it if you are already planning to move money between accounts.
Balance transfer checks work the same way: you receive a check, deposit it into your bank account, and then use the funds. The fee is usually similar to a cash advance fee, and interest accrues from the date you cash the check.
Why money order sellers block credit cards
Money orders are designed to be irreversible. Once a money order is issued and cashed, the transaction is final. Credit card networks (Visa, Mastercard, American Express) prohibit merchants from accepting credit cards for transactions that cannot be reversed, because chargebacks would be impossible if something went wrong.
A chargeback is a dispute process that lets you recover money if a merchant fails to deliver or if fraud occurs. Money orders cannot be disputed this way once they leave the seller's hands. To protect cardholders and themselves, credit card networks simply do not allow money order sales as regular credit card purchases.
This is the same reason you cannot buy gift cards, lottery tickets, or cryptocurrency with most credit cards — the transaction is final and non-reversible.
Comparing your options side by side
| Method | Upfront Cost | Interest | Total for $500 Money Order (30 days) |
|---|---|---|---|
| Debit card | $0–$5 (money order fee only) | None | $0–$5 |
| Credit card cash advance | $15–$25 (3–5% fee) | ~$30 at 24% APR | $45–$55 |
| Balance transfer check | $15–$25 (3–5% fee) | ~$30 at typical BT rate | $45–$55 |
| Account funding (if available) | Varies by issuer | Varies by issuer | Varies by issuer |
When a credit card route might make sense
Using a credit card to fund a money order is rarely the cheapest option, but it can make sense in specific situations. If you have a rewards credit card with a high cash back rate on cash advances (uncommon but possible), the rewards might offset some of the fees. If you are in a situation where you need cash anyway and a money order is just one use of it, the cash advance fee is spread across multiple purposes.
If you are trying to meet a spending minimum to earn a sign-up bonus, some issuers do count cash advances toward the minimum, though this varies. Check your card's terms before assuming this will work.
In almost all other cases, using a debit card or finding another payment method is cheaper and simpler.
Frequently Asked Questions
Can I buy a money order with a credit card at Walmart or other retailers?
Walmart, grocery stores, and other retailers that sell money orders through MoneyGram or their own services have the same restriction: they do not accept credit cards. You will need a debit card, cash, or a check. Some Walmart locations accept prepaid cards, so if you have one loaded with funds, that may work.
Does a cash advance count toward my credit utilization?
Yes. A cash advance is a loan against your credit line, so it increases your utilization ratio immediately. This can lower your credit score temporarily, even though you pay it back quickly. Using a debit card avoids this problem entirely.
What if my credit card issuer won't let me take a cash advance?
Some issuers restrict cash advances based on your account status or credit score. If your card blocks cash advances, you can ask the issuer to enable them, but they may decline. In that case, a debit card or bank transfer is your only option.
Can I use a credit card to buy a prepaid card, then use that to buy a money order?
Most credit card issuers classify prepaid card purchases as cash advances, so you would pay the same fees and interest. Some retailers do accept credit cards for prepaid cards, but the issuer will still treat it as a cash advance. Check your card's terms before trying this.