You want to make a purchase with your credit card, but the seller is only accepting money orders. Do you miss out on a good deal because you don’t have the cash or a debit card on hand? Or is it possible to use your credit card to purchase a money order?
Despite being low on funds, you may be in luck since you can obtain a cash advance from your credit card to buy a money order. Still, it may not be a smart financial move.
What is a Money Order?
A money order is a secure form of payment that you can use to buy goods and services. They’re available for purchase at banks, credit unions, select retailers and grocers, convenience stores, check-cashing locations, the post office and payday loan entities.
Money Order vs. Checks
Unlike checks, money orders are a guaranteed form of payment. You’re required to pay for it upfront plus a nominal issuing fee to ensure it won’t bounce when the recipient cashes it. But with a check, you can write it for whatever amount you want, although it could bounce when presented to the recipient’s bank if the funds aren’t available in your account.
Also, money orders are typically limited to $1,000, and some issuers also cap the number you can purchase per day. However, the same rules do not apply to checks.
The Benefits of Money Orders
Guaranteed Funds
Since you must pay for the money order upfront, it’s guaranteed to clear when cashed.
Universal Acceptance
Money orders are accepted nationwide and abroad and participating retailers and financial institutions.
No Bank Account Required
You can purchase a money order, even if you don’t have a checking or savings account at a financial institution. This makes paying bills and making purchases easier for unbanked consumers.
Your Information is Safe
Your routing and checking account number aren’t included in a money order. So, your banking information will be shielded from fraudsters.
You Can Use Foreign Currency
Money orders can also be purchased and cashed abroad if the sellers have branches in the countries where recipients are located.
Generally Secure Transaction
As mentioned above, routing and checking account numbers are listed on money orders, making them a secure form of payment. Furthermore, you can replace a lost or stolen money order by paying a fee to the issuer.
Can You Get a Money Order with a Credit Card?
Yes, you can use a money order to buy a credit card. However,
Should You Get a Money Order with a Credit Card?
When looking to buy a money order with a credit card, you’ll quickly learn that this payment option is no longer available. It used to be an option at Western Union and 7-Eleven, but credit cards are no longer an acceptable form of payment.
Alternatives to Money Orders
If you’re unable to take a cash advance from your credit card to buy a money order, here are some alternatives worth considering.
Money Transfers
Both PayPal and Venmo allow you to transfer funds from your credit card to relatives, friends or other parties you’re doing business with.
Prepaid Cards
Consider using a prepaid card to pay bills or purchase goods and services.
Personal Checks
If you have the funds available in your checking account, you can write a personal check to remit the payment.
Cashier’s Checks
Like money orders, cashier’s checks are another secure form of payment. They’re issued by banks and are available for higher limits than you’ll get with a money order. However, the fee is also usually higher.
Cash
Cash is almost always an option to pay for goods and services or pay bills.
Electronic Payments via an App
An innovative app, like Current (*) , is another alternative to making a money order purchase with a credit card. Current offers banking services through Choice Financial Group, Member FDIC, that enable you to effectively manage your hard-earned money and make it work better for you.
The platform boasts 4 million members to date, and for a valid reason – all of the enticing perks that come with opening a Current account, including:
- Savings Pods that you can deposit funds into and earn up to a 4.00% bonus (1)
- Overdraft protection through the Overdrive feature that lets you overdraw your Current account by up to $200 without incurring any overdraft fees (note: this feature is only available to Current members who enroll in direct deposit and receive at least $500 per month) (2)
- Earlier paydays as you can receive your paycheck two days sooner when you opt to have it deposited into your Current account (3)
- Generous points-for-cash-back rewards of up to 15 points per dollar spent at more than 14,000 retailers, restaurants, gas stations, grocers and other merchants throughout the U.S.
- Enhanced security features, like the ability to block transactions in real-time directly from the mobile app, Face ID locks and fingerprint locks
- FDIC deposit insurance coverage of up to $250,000 through Choice Financial Group, Member FDIC
Explore what Current has to offer by visiting the website or downloading the mobile app. If you decide to open an account, it’s free and won’t take more than two minutes of your time.
