Sometimes you need to make payments or even accept one, but cash, online transfers, or a check won’t do. If you find this to be the case, a money order could be the best and most secure option.
Although many are familiar with money orders and how to fill one out, the very nature of a money order can bring up the question “can you get a money order with a credit card?”
The question makes a lot of sense since a money order involves a person paying in advance for a document, similar to a check, which you can then use as payment or accept as payment.
What differentiates a money order from a check is that you won’t owe an establishment like a bank for the payment because you have already paid for it. On the other hand, a check is paid with money that you will then owe the bank after it has been cashed out.
So is it possible to get a money order with a credit card? Is it possible to use a payment method that will have you borrowing funds from the bank?
Can You Get a Money Order with a Credit Card?
You can use a credit card to get a money order however, not many merchants allow this transaction.
Many establishments prefer cash, a debit card, or guaranteed methods of payment. Credit cards are a bit inconvenient as they carry high financial risks and they can also generate high interest rates.
There are merchants that allow people to purchase money orders with their credit card, but the bank or credit card issuers will view this as cash advances.
Here are some disadvantages of using credit cards to purchase a money order:
- Banks can charge more for cash advances than regular credit card purchases.
- Banks or credit card companies treat cash advances differently and don’t count them when it comes to rewards and bonuses.
- You need to pay the cash advance as soon as possible so as to not raise your credit utilization rate.
- Interest can accrue faster than cash advances so you have to make sure that you pay them off on time.
Below are two different ways that you can get a money order with a credit card:
- Use a credit card. You can also use a credit card to get a money order from most major retailers. Simply purchase a money order from the retailer and pay for it with your credit card.
- Use an online service. There are a number of online services that allow you to get a money order with a credit card. Simply select the service you want to use, enter your credit card information, and follow the instructions on how to get a money order.
Other payment methods for money orders:
- Use a prepaid debit card. You can use a prepaid debit card to get a money order from most major retailers, including Walmart, 7-11, and Western Union. Simply purchase a money order from the retailer and pay for it with your prepaid debit card.
- Use a check. You can also use a personal or business check to get a money order from most major retailers. Simply purchase a money order from the retailer and pay for it with your check.
- Use cash. You can also use cash to get a money order from most major retailers. Simply purchase a money order from the retailer and pay for it with cash.
How to Fill Out a Money Order
It’s a popular payment method, but money orders tend to be lost on some people. Many still don’t know how to fill out money orders. How do you place a money order?
Money orders can be purchased at many locations, including banks, post offices and convenience stores. Once you have your money order, follow the steps below.
1. Fill in the payee line with the name of the person or business you are paying.
2. Write the amount of the money order in numbers on the line labeled “Amount.” Include the dollar sign and cents. For example: $500.00
3. Sign your name on the line labeled “Purchaser’s Signature.”
4. Fill in the date on the line labeled “Date.”
5. Include a note if you like in the “Memo” section. This is optional but can help the recipient know what the money order is for.
Now you’re ready to mail your money order. Be sure to keep the receipt in case there is any problem with the money order.
Why Do People Use Money Order Instead of Cash?
Money orders can be used by anybody, even people who don’t have access to a standard checking bank account. People can use it to pay for various services, even as a payment method for their mortgage.
There are many instances when it might be a good idea to use a money order.
For one, money orders are a secure way to send money. Unlike personal checks, which can be altered or forged, money orders are much harder to tamper with. This makes them ideal for sending large sums of money, or for sending money to someone you don’t know well.
Another reason to use a money order is if you don’t have a checking account. Money orders can be purchased with cash, so you don’t need a bank account to get one. This makes them a good option for people who are unbanked or underbanked.
Finally, money orders are a good alternative to sending cash through the mail. If you’re sending money to someone far away, a money order can be a safer option than cash, which could be lost or stolen in transit.
Money orders can also be issued in one country and be cashed in another, which makes it a very convenient payment method.
The Disadvantages of Money Orders
Although money orders are safe and convenient, cons to using this payment method do exist. If tracking is important to you, then there could be some inconveniences as money orders can be difficult to track at times.
It could take time to find out whether the money has been cashed. You will need to fill up forms and could take weeks before you find out whether the other party has received their money.
Another problem that can occur is the money order being fraudulent. To make sure that you’re receiving a legitimate money order, always make sure that you know the people who are issuing the money.
Every payment method has its pros and cons, you just have to make sure that you avoid the possible disadvantages by doing your own research, being vigilant, and double-checking your transactions.
Purchase a Money Order Using Cash or Debit Card
If you can, purchase money orders with cash or a debit card. While credit cards are very convenient and useful, make them your last resort. This will enable you to avoid any debt from piling up and prevent interest rates from accruing.
Interest rates on cash advances can be higher than normal purchases, so make sure to not increase your credit utilization and damage your credit score.