By Rick
Even though you can use a credit card for almost any purchase these days, there may still be times where you need to send a Money Order to someone. The question ”Can you get a Money Order with a credit card?” is a common one and actually has several parts to the answer. In many cases you can actually use a credit card in place of a Money Order for paying a bill or settling a debt but if you really need to purchase a Money Order using a credit card there are a few things you’ll need to know.
Money Order = Cash Advance
Many credit card companies allow you to use a credit card to purchase a Money Order but treat the purchase as a cash advance. This is important because it usually involves a much higher interest rate than a normal purchase. Most cards actually carry two different interest rates, one for purchases and one for a cash advance when you use the card at a bank or an ATM. This cash advance rate is usually much higher than your normal rate and can really add a lot of cost when using the card this way. You’ll also need to understand how your monthly payments are applied to the different balances you carry. Some cards will pay the higher rate balances first and others divide the payment between these different charges. In either case, it’s always a good idea to limit your use of a credit card to purchase Money Orders whenever possible.
Some cards forbid It
Even though most lenders don’t object to you using their card for purchasing a Money Order, some specifically forbid it in their user agreement. A quick call to your credit card’s customer service line should help you avoid any confusion. They will typically be able to answer the question “can you get a money order with a credit card”. You’ll need to be aware of this to avoid embarrassment later on. In most cases these cards will simply decline the charge when you attempt to purchase the Money Order. Others will approve the charge and may later reduce your credit limit or close the card completely for violation of the agreement. This can have some serious consequences for your credit rating and should be avoided at all costs.
Rules can vary with money order vendors
Answering the question “can you get a Money Order with a credit card” has a second element. The other thing you need to find is a merchant that is willing to let you pay for the Money Order with a credit card. The fact that the credit card company is fine with you using the card is only the first part of the equation; you also need a willing merchant. Some stores that sell Money Orders only allow you to pay for them with cash or a check.
The reason they avoid the credit card payment is that they are only making a slight profit on issuing the Money Order that may easily be wiped out by the charges they pay to the credit card company for accepting the card as payment. In extreme cases where you need to make the Money Order purchase, you can always go the safer (and more expensive) route of doing a traditional cash advance at an ATM and using that cash to buy the Money Order. This will be the more expensive option but is sure to work every time.
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