Disclaimer: This website is monetized by ads, Amazon Associates, CreditCards.com, and other affiliates. As such, this article may contain affiliate links. If you decide to use them, you can sleep easier knowing you're helping me give my cats a better life. :) I really appreciate your support!
Often times a money order can be a great alternative to sending cash through the mail. The good news is there are several ways to purchase them. While it is possible to use a credit card, I’d like to explore other, possibly better, ways to purchase a money order.
You can buy a money order with cash, a debit card, a check, and via a bank transfer. You can also pay with a credit card at select locations, but as I’ll explain, it’s probably not your best choice.
You can purchase with a credit card, but you’ll pay high fees.
Select locations allow you to purchase a money order with a credit card, but there are a few things to be aware of, such as high fees. Before we discuss this in detail let’s first talk about what a money order is and when you should use it.
A money order is a form of prepaid payment that’s a safe alternative to cash or checks. Money orders are safer than cash when making payments by mail: they can be tracked and canceled, and they’re “made out” to a particular recipient – not just anybody can cash a money order.
Sellers (or whoever you’re paying) may also prefer money orders because – when they’re not fakes – they’re almost a form of “guaranteed” payment.
You specify who will receive the money order, and both you and that person must sign it for it to be valid. Unlike with a personal check, the money is guaranteed by a third party, such as the post office, Wal-Mart, or Western Union. The cost usually ranges from under a dollar to several bucks, which can be a bargain compared with some other ways to send money, especially internationally.
There are times when using cash or personal checks can put you at risk, or they aren’t accepted for payment. Examples:
Credit card companies treat money order purchases as cash advances. The reason for this is that issuers don’t want you to evade the cash advance interest by sending yourself a money order paid for by your credit card. As you may know, credit card cash advances come with a high interest rate and an additional fee. The interest charges kick in right away, so unless you repay it immediately, you’ll be spending extra money for the privilege of sending a money order.
So let’s assume that using a credit card is your only option. The average credit card charges a cash advance fee between $10 and $20, and an interest rate 1-7 percent higher than your standard purchase rate. Of course, if you planned to repay the cash advance right away, you’d probably use cash to buy the money order in the first place!
MoneyGram, Walmart, the USPS and Moneytree do not accept credit card payments for money orders. However, these two money order providers do:
You can also buy money orders at your local bank. Alternatively, your bank will prepare a certified check for you. In either case, payment is via your bank account or cash, but not credit cards unless you first take a cash advance.
There are several card-friendly alternatives to money orders:
Certain banks have been known to shut down accounts for depositing too many money orders and not all grocery stores will allow you to purchase money orders with these gift cards. The best way to find out your options is to experiment and research.
While you can pay for a money order with a credit card (and sometimes that may be your only option without the cash on hand), these options can help save you money by avoiding high fees and APRs. They can also keep you on top of your payments with the added benefit of automatic withdrawals. So, can you buy a money order with a credit card? Yes, but like I said above, proceed with caution.