Can you buy a money order with a credit card? The answer is yes — but there are a few things you need to know first.
For starters, 7-Eleven stores and Western Union are the only vendors that allow you to purchase a money order using a credit card. Furthermore, your credit card company recognizes these money orders as cash advances.
So if you’re thinking of using your credit card to buy a money order, it’s crucial to weigh the pros and cons first.
What Is a Money Order?
A money order is a form of payment for goods or services. They are often used when cash or checks are not accepted, or the person receiving the payment needs a payment guarantee.
How Do You Buy a Money Order?
To purchase a money order, you need to provide the teller with the amount of money you want to send, as well as the recipient’s name and address. You will also need to pay a small fee — typically between $0.50 and $1.95.
Credit Cards
Now that you no longer have to wonder, “Can I buy a money order with a credit card?” the next question is whether it’s a good idea just because it’s possible.
First of all, your credit card company will treat it as a cash advance, which has several drawbacks. For example, you’ll pay more interest for a cash advance than you would for an ordinary purchase.
Secondly, your credit card provider might charge you a cash advance fee of $20.00 or more. And lastly, taking out a cash advance might also harm your credit score if your credit utilization ratio rises above 30%.
Debit Cards
Can you purchase a money order with a debit card? Yes, you can! However, unlike with a credit card, this is often the cheapest way to get one.
When you buy a money order with your debit card, the funds are transferred immediately from your account to the recipient’s account. This means there’s no risk of the money order being lost or stolen.
Also, many more money order providers accept debit cards than credit cards, such as 7-Eleven, Western Union, Kroger, USPS, Publix, and Walmart.
Gift Cards
The next order of business is answering the question: “Can you buy a money order with a gift card?” While most establishments do not allow customers to use gift cards to purchase money orders, a few locations do, with certain limits.
For example, you can’t buy a money order with a store gift card like CVS or Rite Aid, but you can use Mastercard or Visa pin-based prepaid cards to do so, such as Vanilla Visa, Netspend, and Green Dot.
These transactions can be processed as debit transactions by the money order issuer.
PayPal
PayPal is one of the most popular payment methods among Americans. It has more than 300 million active users, so you might wonder, “Can you buy a money order online with PayPal?”
Unfortunately, no. PayPal doesn’t allow you to buy money orders online. You can, however, use a PayPal Cash Card to purchase money orders at banks and credit unions, any USPS location, and some MoneyGram and Western Union locations.
A PayPal Cash Card is a debit card linked to your PayPal account. To obtain one, you must first have an active PayPal Cash Plus account.
Where Can I Buy a Money Order?
There are a few different places where you can buy a money order:
- post offices
- banks
- grocery stores
- convenience stores
That’s all well and good for other payment methods, but your question is probably: “Where can I buy a money order with a credit card?” In short, only 7-Eleven convenience stores and Western Union accept credit cards for money order purchases.
However, as mentioned before, if you buy a money order with your credit card, the transaction will be considered a cash advance. As a result, you’ll incur an expensive charge and a high interest rate.
7-Eleven
As we’ve seen, the answer to: “Can you buy a money order with a credit card at 7-Eleven?” is yes. However, you can only do it with a MoneyGram or Western Union money order because those can be cashed with a credit card. Money orders from 7-Eleven will cost you $1.50 (taxes included), on top of the other cash-advance-related fees.
Keep in mind that the maximum limit for a money order is $500.
Western Union
Finally, you can buy a Western Union money order with a credit card. At Western Union, the standard fee for a money order up to $100 is $1.25, but any amount between $100.01 and $1,000 will cost you $1.50.
You can purchase a money order at any Western Union Agent location. However, make sure to select ‘Money Order’ in the filters.
Post Office
If your question was, “Can you get a money order with a credit card at the post office?” the answer is no. The US Postal Service only accepts cash, debit cards, or traveler’s checks for money orders.
To purchase a money order with a debit card at the post office, simply fill out a form and hand it to the postal worker behind the counter along with your debit card. The postal worker will then process the transaction and give you your money order. You can send up to $1,000 per day.
Walmart
Another query with an unfortunate answer is, “Can you get a money order with a credit card at Walmart?” as Walmart does not accept credit cards in lieu of a money order. If you want to buy a money order at a Walmart Money Center, Walmart Supercenter, or Neighborhood Market, you’ll need a debit card or cash.
Conclusion
To conclude, while you can buy a money order with a credit card at specific locations, it’s rarely a good idea. For one, your credit card issuer may treat the purchase as a cash advance, which incurs fees and high interest rates.
If possible, stick to using cash or a debit card instead.
FAQs
Can you buy a money order online with a credit card?
You can’t buy a money order online with a credit card. You can only purchase them in person at 7-Eleven and Western Union.
Can you buy money orders at the post office with a credit card?
You can’t buy money orders at the post office with a credit card. Again, the USPS accepts only cash and debit cards for money orders.
Can you get a cashier‘s check or money order with a credit card?
Yes, but only if you take out a cash advance on your credit card. This way, you can use cash to buy the money order or cashier’s check. However, we wouldn’t recommend it because cash advances come with high fees and interest rates.
How much does it cost to buy a money order with a credit card?
The typical cash advance fee is 3% to 5% of the transaction amount. However, the cost will vary depending on the provider. For example, at 7-Eleven, the standard fee is $1.50 for a $500 money order, while at Western Union, amounts between $100.01 and $1,000 will cost you $1.50, and those worth $100 or less will incur a $1.25 fee.
Can I buy a money order with a credit card at Walmart?
You can’t use your credit card to buy a money order at Walmart. You can only use cash or your debit card.
Should you buy a money order using a credit card?
No, you should not buy a money order with a credit card. Why? For one, they are usually more trouble than they’re worth. Plus, you’ll be charged a higher interest rate if you take out cash using your credit card, and there’s no grace period.
So, can you buy a money order with a credit card? Yes, you can. Is it cost-effective? Not so much.
