A money order is a safe way to send money to friends and family. Credit cards can be used to buy money orders, however, it is difficult to find shops that accept credit cards. Because using a credit card implies financial risk and high interest rates, retailers typically prefer customers to use cash or a debit card to guarantee the value of the money order.
Can You Buy a Money Order With a Credit Card?
A money order, like a personal check, is a paper form of payment. When people want more protection and traceability, they usually use money orders instead of checks or cash. The purchase amount of a money order is guaranteed, which means the customer must pay for the money order in advance from a store or merchant. The order must be written out to a specific person or firm who will receive the paper and cash it at a different location—with proper identification.
If you need to make a payment or send money, a money order is a more secure option than a personal check or cash. You can usually purchase one with a debit card or cash, but you may ask, “Can I buy a money order with a credit card?” Yes, technically, but it may be more bother than it’s worth.
Although credit cards are great for ordinary purchases, purchasing a money order with one is certainly a viable alternative. Many businesses or merchants do not allow credit card purchases of money orders; thus, it is always preferable to use cash or a debit card first.
If a shop accepts money orders with a credit card, keep in mind that many credit card companies consider money order purchases to be cash advances. There are some drawbacks to this:
#1. Cash Advances Cost More Than Ordinary Purchases.
Annual percentage rates (APRs) for cash advances are often higher than those for normal purchases. They also have fees, which are usually 5% of the entire advance or $10, whichever is bigger. Unlike conventional purchases, which have an extended period, cash advances begin accruing interest on the day of purchase.
#2. Cash Advances Are Frequently Not Eligible for Incentives, Welcome Bonuses, or Other Points.
A cash advance will not help a cardholder meet their minimum spend requirement for a welcome bonus.
#3. Cardholders Risk Increasing Their Credit Use Rate.
Because cash advance interest accrues instantly, there is a significant chance that the cardholder will accrue interest before repaying the borrowed amount. Interest expenses are factored into a cardholder’s credit utilization rate, which should be kept below 30%. If a cash advance is not paid off as soon as feasible, a cardholder’s debt can swiftly spiral out of control.
Where Can You Buy a Money Order With a Credit Card?
At this time, we are not aware of any service providers that will take a credit card to pay for money orders. (7-Eleven and Western Union used to, but no longer do.) As a result, you’ll need to use your credit card to receive a cash advance at an ATM or bank branch. Nevertheless, you can also use a check linked to your account before you can get a money order.
Financial expert and Maggie Germano Financial Coaching founder Maggie Germano explains that a cash advance is like taking out a loan against your credit card’s available credit. “There are extra fees that come along with getting a cash advance,” according to her, “and there also may be higher interest rates.”
“Keep in mind that if you pay more than the minimum, your credit card company must charge the account with the highest interest rate first. In this way, you can save money by using your credit card to buy a money order and then pay off the balance before making any other purchases. However, it may impede your efforts to reduce your existing debt.”
Can You Buy a Money Order With a Credit Card at Walmart?
You can’t use a credit card to buy a money order at Walmart, Moneygram, or the USPS. While some of these companies may accept credit card payments made by alternative means, such as telephone transfers, your issuer will likely still see these transactions as cash advances.
Can You Buy a Money Order With a Credit Card at the Post Office?
You can send up to $1,000 in one order to any location in the United States. Go to any US post office. Bring cash, a debit card, or a traveler’s check with you. You cannot pay with a credit card.
Can You Get a Money Order With a Capital One Credit Card?
You can usually pay for money orders with cash or a debit card. Because issuers frequently require cash up front, they may refuse to accept a personal check or credit card. Even if you use a credit card, your card company may consider it a cash advance.
Does Western Union Accept Credit Cards?
If you need money quickly, you can send it online with your credit or debit card. Receivers can pick up cash at Western Union locations globally, depending on the location’s hours of operation.
Can I Buy a Cashier’s Check With a Credit Card?
Generally, you cannot buy a cashier’s check with a credit card. But imagine you don’t have enough money in your bank or savings account. Then you can consider using your credit card to obtain a cash advance, transferring the funds into your bank account, and acquiring a cashier’s check.
Does Moneygram Accept Credit Cards?
You can pay for online transfers with a bank account, a credit or debit card (Visa, MasterCard, Discover, Diners Club International, or Union Pay), or both. When you use a credit card, a cash advance fee and associated interest charges may apply.
How Can I Get Cash From My Credit Card?
Insert your credit card into an ATM. Enter the credit card PIN (call the number on the back of the card to find out or set up the credit card PIN). If given the choice, select “cash withdrawal” or “cash advance.” When asked to choose between “credit” and “debit,” choose “credit.”
Is Using a Credit Card for Western Union a Cash Advance?
Cash advances issued with credit cards may be subject to interest charges levied by the card issuer. Use a debit card or look into alternative payment methods to avoid or get reduced fees. There are no bank holidays for the receiver. When giving out your bank account details, please be careful.
Bottom Line
If a store accepts credit cards, it’s still preferable to pay with cash or a debit card instead of a credit card when buying a money order. The majority of retailers still won’t take your credit card when you pay with a money order. You can buy a money order with a credit card at Western Union if you need to, but that should be your very last option.
The majority of credit card companies count money order purchases as cash advances, which can lead to a debt spiral if the cardholder is unable to repay the cash advance promptly. On the day of purchase, interest starts to accumulate, typically at a greater rate than for typical transactions.
- ONLINE MONEY ORDER: How to Buy, Send and Cashout Online Order
- The Difference Between Debit Cards and Credit Cards
- BALANCE TRANSFER CREDIT CARD:11 Best Transfer Credit Cards in 2023
- HOW TO WRITE CHECK WITH CENTS: An Easy Guide
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