Can You Get Money Order Credit Card

Can You Get Money Order Credit Card? The Costly Truth Explained

If you're looking to pay a bill, send money securely, or make a large purchase without writing a personal check, a money order is often the perfect solution. But what happens when you don't have cash or a debit card handy? You might naturally wonder: Can you get money order credit card?

The short answer is yes, this transaction is technically possible in some locations. However, before you swipe that plastic, you need to understand one crucial detail: your credit card company will almost certainly categorize this as a cash advance—and that comes with a heavy price tag.

We're here to walk you through exactly how this process works, the hidden fees you need to be aware of, and why using a credit card to buy a money order should almost always be your last resort.

The Short Answer: Yes, But It's a Cash Advance

When you purchase a money order using a credit card, you are essentially converting your available credit limit into liquid cash. Because money orders are considered cash equivalents—meaning they are as good as money itself—credit card companies treat this purchase differently than buying groceries or shoes.

This classification means the transaction bypasses the standard 'purchase' category and falls directly into the 'cash advance' category. This shift in classification is the root cause of the high fees and immediate interest accrual you will face.

Why Your Credit Card Issuer Treats It Differently

Credit card networks use Merchant Category Codes (MCCs) to identify what kind of business you are paying. If the merchant selling the money order has an MCC associated with financial services or cash equivalents, the transaction is automatically flagged as a cash advance.

The card issuers do this to prevent risky behavior. They don't want people using their credit to easily generate cash (like buying a money order and immediately depositing it) without paying hefty fees, as this practice could be used for money laundering or simply avoiding higher interest rates on traditional cash advances.

Navigating the Fees and Interest Rates

If you choose to proceed and get money order credit card, be prepared for a financial triple whammy. You will incur three separate costs for the convenience, making it one of the most expensive ways to purchase a money order.

The Cash Advance Fee

First and foremost, your credit card company will charge a steep fee just for allowing the cash advance. This fee is usually calculated as a percentage of the transaction amount, though sometimes it has a flat minimum.

For example, if the fee is 5% or $10, whichever is greater, a $200 money order would cost you $10 just in the cash advance fee. If you bought a $50 money order, the fee might jump to the $10 minimum, making the transaction 20% more expensive before interest even kicks in.

The Immediate Interest Charges

Here is where things get truly expensive. Standard credit card purchases come with a grace period, usually 21 to 25 days, allowing you to pay off the balance before interest is applied. Cash advances have no such grace period.

Interest starts accumulating the moment the transaction is posted to your account. This means you begin paying high-interest APR from Day 1 until the balance is completely cleared.

Understanding the APR Difference

Furthermore, the Annual Percentage Rate (APR) for cash advances is almost always significantly higher than your standard purchase APR. It's not uncommon for cash advance APRs to be several percentage points higher, sometimes exceeding 25% or even 30%.

If you are struggling to pay off your balance quickly, using a credit card to obtain a money order can create a debt spiral due to these compounding fees and elevated interest rates.

Where Can You Potentially Purchase Money Orders Using a Credit Card?

While most major retailers explicitly forbid the use of credit cards for money orders to prevent the cash advance scenario, some smaller or local businesses might allow it, either due to loose policies or cashier error.

However, even places known for selling money orders often have strict payment policies:

1. The Post Office (USPS): The United States Postal Service requires cash, debit cards, or traveler's checks for money order purchases. They do not accept credit cards.
2. Walmart: Walmart's policy generally prohibits the use of credit cards for money orders. They typically accept cash or debit only.
3. Grocery and Convenience Stores: Policies vary greatly. While some smaller chains might allow you to run the transaction through, they risk a fee chargeback from the credit card processor, which is why most national chains ban the practice.
4. Check Cashing Stores/Financial Centers: These locations are more likely to process the transaction but will have the highest associated fees, often layered on top of the credit card's cash advance charges.

Remember, even if a location accepts your credit card, you are still triggering a cash advance on the backend. Just because the point-of-sale machine accepts the card doesn't mean your bank won't hit you with fees later.

Smarter Ways to Fund Your Money Order

Given the high cost of the cash advance fees and immediate interest, you should prioritize alternatives before trying to get money order credit card access.

If you don't have cash, your debit card is the next best choice. Most money order sellers accept debit cards, and the transaction is treated as an electronic transfer from your checking account rather than a high-cost loan.

Here are the benefits of using a debit card instead:

• No Cash Advance Fees: You avoid the punitive 3% to 5% fee charged by your credit card issuer.
• Low or No Purchase Fee: You only pay the standard, low fee charged by the retailer (often less than $1 to $2).
• No Interest Accrual: Since the money comes directly from your bank account, you pay zero interest.
• Better Record Keeping: The transaction is immediately reflected in your bank statement, making reconciliation easier.

If you absolutely must rely on credit, consider using a mobile wallet service or peer-to-peer payment app (though these also often charge fees for credit card funding). However, for a money order specifically, debit or cash remains the financially sound approach.

Conclusion: Think Twice Before You Get Money Order Credit Card

While the answer to "Can you get money order credit card?" is technically yes, it is almost never a smart financial move. The process triggers a cash advance, immediately subjecting you to high fees (often 3-5% of the transaction) and an elevated interest rate that begins accruing instantly without a grace period.

For most consumers, the combined cost of the retailer's fee, the credit card company's cash advance fee, and the high daily interest rate far outweighs the convenience. Protect your credit standing and save money by utilizing cash or a debit card when purchasing any form of cash equivalent like a money order.

Frequently Asked Questions (FAQ)

Can I use a credit card at the Post Office to buy a money order?

No. The USPS specifically prohibits the use of credit cards for money orders. They require cash, debit cards, or traveler's checks.

Do I earn rewards points if I use my credit card for a money order?

Typically, no. Cash advances do not qualify for standard rewards points, cashback, or travel miles. Furthermore, if you did manage to earn rewards, the cost of the cash advance fees would significantly outweigh the value of the points earned.

Is a money order the same as a cash advance?

A money order is a financial instrument, a promise of payment. When you purchase it using a credit card, the credit card company classifies the transaction itself as a cash advance because you are exchanging your credit limit for a cash equivalent that can be easily liquidated or deposited.

How high are cash advance fees normally?

Cash advance fees usually range from 3% to 5% of the transaction amount, often with a minimum fee of $5 or $10. Additionally, the APR applied to that cash advance balance is often several points higher than your standard purchase APR.

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