Can You Pay for Money Order With Credit Card

Buying Coin Orders with a Credit Bill of fare: Here's All You Should Know

• Ownership a Money Order
• Price
• Refund
• Should You lot Purchase
• Alternatives

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Nigh people will rarely come beyond a situation where they need a coin order. However, if you do ever need to apply a money order, yous should know how it'south done.

Ane common question is: can you buy a money order with a credit card? The simple answer is: yeah. A detailed explanation will be discussed below.

Tin can Y'all Buy a Money Society with a Credit Card Anywhere?

While information technology's true that you can buy a money order with a credit carte, it's not possible everywhere. Y'all can only find this service at specific locations.

7-Eleven and Western Union do credit cards as a form of payment for a money order; yous'd only need to visit 1 of their branches, requite your credit card details and purchase a money order.

However, the procedure is trickier and longer now as it is seen equally a cash advance through a bank branch or an ATM on your credit card before buying a money social club. A cash advance is a pocket-sized cash loan you lot accept from the line of credit on your credit card.

You have to pay boosted fees when you exercise this, so carry that in listen when yous buy a coin order using a credit card.

How Much Does It Price?

Buying a money lodge using your credit carte du jour costs quite a bit since you become a cash advance first.

Money Order Fees:

• Cash Advance Fee: Your bank volition charge yous a 3% to five% cash advance fee on each transaction. The minimum fee ranges from $five to $10, depending on the amount you're taking equally an accelerate. If you lot're buying a money society worth $1000, the fee could be up to $50, depending on your credit bill of fare.
• Cash Accelerate APR: Banks and credit bill of fare unions charge a high annual percent rate on every greenbacks advance you take compared to a regular buy. Depending on your bank, the Apr could be anywhere between 25% and 30%.
• No Grace Menstruation: Typically, banks will give you a grace period in which if you pay the amount, you do non accept to pay any involvement. Still, at that place is no grace period with a cash advance, so the interest begins accumulating from the solar day of the transaction.
• Might Injure Credit: Moreover, taking a cash advance could hurt your credit score if it raises your credit utilization ratio too loftier. Thus, if you develop a habit of frequently buying coin orders with your credit carte du jour, y'all may have more significant problems downwardly the line.

Is It Possible to Get a Refund?

You can get a refund on your coin lodge if it has not been used. If you have non entered the recipient's information, you can simply make full in your data as the recipient and cash the money order.

However, if y'all have already written the recipient's information, you must contact the issuing agency. They may charge y'all a fee for canceling. For instance, Western Spousal relationship has a $xv fee for canceling your money order.

Additionally, Western Spousal relationship increases the fee up to $30 if you don't show a receipt. Be certain to save your receipt to avoid this additional fee in case of cancellation. At the time of cancellation, you can choose to get a refund or a replacement coin lodge.

Should You Buy a Money Gild with a Credit Menu?

Yous should only buy a coin order with a credit bill of fare if you have no other choice. Continue in mind that doing so should exist your final resort since purchasing a money gild with your credit card has many fees associated with it.

Drawbacks of Buying a Coin Order with Credit Menu

• Expensive: As discussed earlier, buying a money guild with your credit bill of fare comes with plenty of fees. On top of that, the fees differ based on your banking concern, and so y'all can never really be sure how much information technology will cost you.
• High APR: If you already have a high APR for regular purchases, an even higher Apr due to greenbacks advances will only arrive harder for you to pay back the amount.
• No Rewards: When you have a greenbacks accelerate on your credit card, it does not count towards whatever incentives or minimum spending. Moreover, you do not become any cash back rewards on this purchase.
• Difficult to Detect: It'south challenging to find a merchant that volition permit you buy a money order using your credit card. Fifty-fifty the U.S. Postal Service won't accept credit cards for purchasing money orders.
• More Difficult to Pay Off: In the long run, information technology is harder to pay off your cash advance considering card issuers allocate your payment to a residuum with a lower interest rate. The APR on your regular purchases is lower than that on a greenbacks advance. So, if you make a minimum payment, the card issuer will allocate it to paying off the regular purchases since they have a depression Apr. As a result, the cash advance takes longer to be paid off and keeps accruing involvement, and at a higher charge per unit.

Culling Options

Considering the many drawbacks and higher costs of ownership a money lodge with a credit menu, information technology'southward often better to opt for alternatives.

• Loans: The Federal Reserve's data from the first quarter of 2022 showed that the average interest on a personal loan is 9.46%, which is much lower than the APR on a cash advance. If you have a good credit score, consider getting a personal loan.
• 401(thou) Loan: If you have a 401(g) plan, you lot can accept a 401(k) loan and pay it back in time. The chief benefit of this loan is that no lender is involved, as you're taking a loan out of your retirement savings. Moreover, no credit check is required for this kind of loan.

Final Accept

Buying a money order using a credit carte du jour is an option, just it should be the last ane on your list. If you demand money immediately, endeavour one of the alternatives nosotros have discussed to a higher place.

If nothing else is available, you can purchase a money order using a greenbacks advance taken out on your credit card. Brand sure you correctly understand the costs associated with the procedure to avoid any surprises later on.

Scott Jeffries is a seasoned applied science professional based in Florida. He writes on the topics of business, engineering, digital marketing and personal finance. Later on earning his bachelor's in Direction Information Systems with a minor in Business, Scott spent 15 years working in technology. He's helped startups to Fortune 100 companies bring software products to life. When he'due south not writing or building software, Scott can exist plant reading or spending fourth dimension outside with his kids.

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Source: https://www.gobankingrates.com/banking/money-market-account/can-you-buy-a-money-order-with-a-credit-card/

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