Money transfers are a secure way to send money by post or make payments to companies that have limited payment options. But if you only have a credit card, you’re probably wondering if you can use it to buy a money transfer. Can I purchase a money order with my credit card?
How money transfers work
Money transfers are similar to cash, only more secure because they designate a specific recipient.
Because they have to be prepaid, they cannot bounce like a personal check and are therefore a form of guaranteed payment. They also do not spray the check account number on the front, which makes them less susceptible to identity theft.
Money transfers are widely available at retail stores and post offices and usually cost less than $ 2. They are a good way to send money by post or pay to the owner – but only if you use cash or a debit card.
When you pay by credit card, it’s a completely different story. Some institutions accept credit card payments for money transfers, while others do not. It’s up to you whether it’s worth it. The easiest way to check if you can buy a money transfer with a credit card is by asking. But be careful – if you use your card to make a purchase, you may end up paying more than you expect.
This is due to the fact that many credit card companies consider remittances as cash advances, which usually have fees of up to 5% of the transaction amount, plus higher interest rates associated with them.
What is the cash charge on the credit card?
If you want to avoid these additional expenses, consider using a different payment method, such as cash, debit card or traveler’s checks, to buy a money transfer.
But before you decide what type of payment is best for you, let’s check how money transfers work and why you may need them.
Finding a seller who accepts credit cards for money transfers
Although credit card issuers allow the purchase of a money transfer, many money transfer vendors do not accept credit cards as a form of payment. This includes Walmart and US postal services. Western Union and 7-Eleven are currently two places where you can buy money transfer using a credit card.
Some sellers allow you to buy money orders using a debit card, but only with a PIN. In the blink of an eye, you can use a credit card to withdraw cash from an ATM and then buy a money transfer. You will pay the same fees and interest, but you will be free to buy a money transfer.
If you are buying a money order to pay bills, check with the invoice issuer to see if you can pay directly by credit card. You may need to pay a convenience fee, but it will probably be much cheaper than using a credit card to purchase a money transfer.
