Does western union accept credit cards for money orders

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Money orders provide a method of secure money transfer to friends and family members. Credit cards can be used to purchase money orders, but finding merchants who allow customers to use credit cards is difficult. Typically merchants prefer customers to use cash or a debit card to guarantee the value of the money order because using a credit card carries financial risk and high interest rates.

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What Is a Money Order?

A money order is a paper form of payment similar to a personal check. People generally use money orders as a check or cash alternative when they’re seeking extra security and traceability. A money order’s purchased amount is guaranteed, meaning the purchaser must pay for the money order upfront from a retailer or merchant. The order must be made out to a specific person or business who receives the paper and can cash it at a different location—with ID in hand.

Pros and Cons of Money Orders

Money orders have advantages such as traceability—with a receipt that usually has the date of purchase, dollar amount and banking code. Stolen or lost money orders are sometimes replaced by the merchant or bank. Money orders are useful for sending quick funds to a friend or family member either locally or even internationally. People who don’t have a checking account can still buy a money order to send cash to someone else.

Keep in mind that money orders usually have a limit as to how much the purchaser can buy. For example, if a retailer has a value limit of $1,000 for one money order, and the purchaser wants to send $3,000 to a family member, they will likely have to purchase three separate money orders. Most retailers or merchants charge a small fee for every money order purchased.

Should I Use a Credit Card To Buy a Money Order?

Although credit cards are useful for making everyday purchases, using one to buy a money order is not likely to be a realistic option. Most retailers or merchants don’t allow money order purchases with a credit card so it’s always better to consider using cash or a debit card first.

If a retailer will allow money order purchases with a credit card, keep in mind that many credit card issuers treat money order purchases as cash advances. There are some downsides to this:

• Cash advances are more expensive than regular purchases. Cash advances typically have higher annual percentage rates (APRs) than regular purchases. They also incur fees (often 5% of the total advance or $10, whichever is greater). Unlike regular purchases which have a grace period, interest for cash advances begins to accrue immediately the day of purchase.
• Cash advances often don’t count toward rewards, welcome bonuses or other points. If a cardholder is hoping to make a dent in their minimum spend for a welcome bonus, using a cash advance won’t help.
• Cardholders are in danger of raising their credit utilization rate. Because interest for cash advances accrues immediately, there’s a serious risk the cardholder will rack up interest before what is borrowed can be paid off. Interest fees count toward a cardholder’s credit utilization rate, which is best to keep below 30%. A cardholder’s debt can quickly spiral if the cash advance is not paid off as soon as possible.
• Paying the minimum balance every month may not count toward a cash advance. Card issuers apply a cardholder’s minimum payment as they see fit. They may apply monthly payments toward purchases that have a lower interest rate. This makes it harder to pay off a cash advance (and the rest of the card’s balance) in the long run as interest accrues quickly.

Find The Best Credit Cards For 2022

No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.

Bottom Line

Purchasing a money order with cash or a debit card is usually a better option than buying one with a credit card, even if a retailer accepts credit cards for money order purchases. Most merchants don’t accept credit cards for money order purchases anyway. If necessary, it is possible to use a credit card at Western Union to purchase a money order but you should only consider this as a last resort.

Most credit card issuers treat money order purchases as cash advances, which could send the cardholder into spiraling debt if he or she is unable to pay off the cash advance as soon as possible. Interest begins to accrue on the day the purchase is made and usually at a higher rate than for regular purchases. Take care not to increase credit utilization rates as this could hurt your credit score over time.

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