Can i use credit card for moneygram

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Can i use credit card for moneygram

Yes, you can buy a money order with a credit card from places like Western Union and 7-11. Just keep in mind that credit card companies consider the purchase of a money order to be the equivalent of a cash advance, so the transaction will trigger an expensive fee and a high interest rate will take effect right away.

Where You Can Buy a Money Order With a Credit Card

CompanyAccepts Credit Cards?Accepts Debit Cards?
7-Eleven** YES YES
WesternUnion** YES YES
K-Mart (uses WesternUnion) YES YES
Kroger NO YES
USPS NO YES
Publix NO YES
Walmart NO YES
MoneyGram* NO NO
CVS (uses MoneyGram) NO NO
Moneytree NO NO

*Policies may vary at MoneyGram locations within stores like Walmart.
**Varies by location.

As you can see, a few money order providers accept credit cards, but credit card companies will treat the purchase like a cash advance wherever you buy a money order. As a result, you’ll trigger an expensive fee (3.75% on average), and a high interest rate (20.7% on average) will immediately apply to the amount of the cash advance. Fees and APRs differ by credit card issuer, but are almost always expensive, so we do not recommend funding a money order with a credit card if you can avoid it.

It’s also good to note that you will likely need to pay a fee to the company you buy the money order from, no matter how you pay for it. These fees range from less than a dollar to a few dollars, depending on the company and the size of the money order. With that in mind, you may be in the market for a way to send money without using a money order. Below, we’ll highlight some options for a handful of scenarios in which money orders are commonly used.

Credit-Card Friendly Money Order Alternatives

  1. Utility Bills

    Third-party services, such as Plastiq, allow you to pay utility bills with a credit card. However, you will likely need to pay a fee. Some utility companies accept online bill pay from a credit card account, too.

  2. Credit Card Bills

    You can use a third-party service like Plastiq to pay one credit card’s bill with another credit card. Watch out for fees, though.

    Opening a 0% balance transfer credit card would enable you to pay off your existing obligation and reduce your finance charges.

    You could also tap into your credit line with a cash advance and then use the cash to pay your other card’s bill. Credit card cash advances are very expensive, so avoid this option whenever possible.

  3. Rent Payments

    There are a number of third-party services that allow people to pay their rent with a credit card when their landlord does not accept credit directly. Some of the most popular are RentPayment, PlacePay, RentTrack and ClickPay. Be sure to familiarize yourself with any fees before using these services.

    If your landlord will go for it, you could also pay rent with a credit card through a money-transfer service like PayPal or Venmo, if you know their email address.

  4. Sending Cash to Friends & Family

    If both you and your intended recipient have Visa debit or prepaid cards, you can take advantage of Visa Direct to electronically deposit money into their account.

    Other money-transfer services like Google Wallet, Venmo and PayPal allow you to transfer money with a credit card using the recipient’s email address. Those transactions will likely be treated as cash advances, though.

  5. Shopping on eBay & Etsy

    Another common use of money orders is buying items in certain categories on eBay and Etsy. However, most of these sellers will also accept third-party payment services like PayPal, Venmo and Google Wallet.

    PayPal is the easiest way to pay for things on these online marketplaces, especially eBay, as the two used to be part of the same company, so the functionality is thoroughly integrated.

For more information about credit substitutes, check out our Credit Card Alternatives Guide.

Video: Can You Buy a Money Order With a Credit Card?

About the author

John S Kiernan

John Kiernan has covered the credit card industry for more than 10 years as a writer and editor for WalletHub. His work has been featured by major media outlets such as The Washington Post and The New York Times and has been cited by industry regulators such as the Consumer Financial Protection Bureau.

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Buying a Money Order With a Credit Card FAQ(4 questions)

What is a money order?

Ryan D Neely, Personal Finance Geek

A money order is exactly what it is named. It is money that is ordered and therefore printed onto a paper document to be given to the receiver. It is more guaranteed and respected when compared to a personal check but not as respected or guaranteed as a cashier's check. On this note, here are some reasons why:

Money Order vs Personal Check

In order to get a money order it has to be paid for with cash money. The amount of the money order is then digitally typed or printed onto a paper note as proof of its purchase letting the receiver know that real money was involved in its publishing. A personal check is handwritten and given to the receiver and the receiver. From that point on, the receiver is at the mercy of the account connected to the check trusting that there is enough money in the account for the check to be covered and not bounce upon being placed in the receiver's account.

Money Order vs Cashier's Check

A money order can only be issued at a height of $1,000. If you wanted to send somebody $2,500 through a money order payment method, you would have to get two $1,000 money orders and one $500 money order. Cashier's checks can be issued at heights way above $1,000. This is why they are a commonly requested form of payment when making a down payment on a home.

Where Money Orders Are More Convenient

Money orders can be purchased at banks, credit unions, post offices, cash advance or check cashing businesses, select gas stations and convenient stores, and even retail stores such as Walmart, Kroger, Kmart and more. Personal and cashier's checks can only be issued to consumers and their receivers by banks.

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Can I use my credit card for Western Union?

WU accepts Visa® and MasterCard® credit cards*. *Card issuer cash advance fee and associated interest charges may apply. Use a debit card to avoid these fees and charges. Note: American Express and Discover payment cards are not accepted for Telephone money transfer.