Can I Get a Money Order With a Credit Card? The Truth Revealed

You\'re wondering, "Can I get a money order with a credit card?" The short answer is: Yes, it is possible to get a money order with a credit card. However, it\'s not always straightforward, and there are crucial things to consider.

In most cases, however, you’ll need to use your credit card to withdraw cash from an ATM if you want to use it to obtain a money order. This is because Most retailers, banks and credit unions don’t let you purchase money orders with a credit card directly. They typically require cash, debit cards, or sometimes even traveler\'s checks.

Why Can\'t I Directly Buy a Money Order with a Credit Card?

The primary reason for this restriction is to prevent potential cash advance fees and high-interest charges that credit card companies levy on cash transactions. Money orders are often used like cash, and allowing direct credit card purchases would essentially be a way to get a near-instant cash advance.

How to Get a Money Order with a Credit Card (Indirectly)

As mentioned, the most common method involves withdrawing cash from an ATM using your credit card. Here\'s how it works:

1. Withdraw Cash: Use your credit card at an ATM to withdraw the required amount for the money order, plus any ATM fees.
2. Find a Money Order Provider: Popular places to get a money order include the U.S. Postal Service, Walmart, Western Union, MoneyGram, and various banks and credit unions.
3. Purchase the Money Order: Present your cash to the provider and purchase the money order for the desired amount.

Things to Consider Before Using a Credit Card for a Money Order

• Cash Advance Fees: Credit card companies treat ATM withdrawals as cash advances, which usually come with hefty fees (often a percentage of the withdrawn amount).
• High Interest Rates: Cash advances typically have higher interest rates than regular purchases. These rates apply immediately, meaning you start accruing interest from the moment you withdraw the cash.
• Lower Credit Limit: Cash advance limits are often lower than your overall credit limit.
• Impact on Credit Score: Repeated cash advances can negatively impact your credit score.

Alternatives to Using a Credit Card for a Money Order

Before resorting to using your credit card, consider these alternatives:

• Debit Card: Using a debit card is the easiest and most cost-effective method, as it directly draws funds from your bank account.
• Cash: Paying with cash is the simplest option if you have it available.
• Check: Some providers might accept personal checks, although this is less common.

In Conclusion

While technically possible, using a credit card to get a money order is generally not recommended due to the associated fees and potential negative impact on your credit score. Explore alternative payment methods first to avoid unnecessary expenses. Always compare the total cost, including fees and interest, before deciding on the best course of action.