Why can't you use a credit card to buy a money order?
Answer:
Because in part when you use a credit card the company that is accepting them gets charged a fee by the credit card company.
Sometimes a flat fee AND a percentage of the total amount.
Assuming that on the average money order being $100 the could be charged as much as $5-$7 per money order. Much more than they charge you for purchasing the money order.
They will tell you that it is the law. But truthfully it's about economics.
Because you can cash the money order. If you are to get cash from credit the credit card companies want you to pay that 5% fee for cash advance.
Because the credit card company charges a fee for processing the purchase. The seller of the money order would be loosing a couple percent on every transaction.
You cannot use a credit card to purchase them at the post office. You can use an ATM or debit card, however:
http://pe.usps.gov/text/dmm300/503.htm#w.
A bank will allow you to get a cash advance then purchase a cashiers check, but the fees and interest changes start right away.
Kinda defeats the purpose doesn't it?
You can purchase money orders with a credit card at your bank.
Cause a Credit Card is Credit and you could in effect cancel the charges and still use the Money order.
actually you can.. go to www.westernunion.com
there's an option for money orders where you can use your credit card.
it's pretty fast.
Much like a Cashiers (or certified) check, a money order is supposed to be "guaranteed funds." This means that its already been paid for in full. The problem with credit cards is. they have no way of guaranteeing that you haven't already maxed out your card. Or you could buy the money order, turn around and max out your card. and then by the time the purchase for the money order goes through. you no longer have the funds. This is standard. Hope that helps!
like an Official or Cashiers check (sometimes called a certified check), a money order is a negotiable item and the bank guarantees this item. For a bank or Financial institution to guarantee an item they must receive guaranteed funds.
Meaning, they are basically turning your "cash" into a more easily transmitted form.
With credit cards, there is no real "cash", at least it is not guaranteed. It is one of those things that doesn't mix in banking.
Now, there are some sites out there that will let you use a Debit card to purchase a money order, and that's because those funds are "CASH" liquid, negotiable and real.
Some may argue that one an approval code has been given by a credit card, the bank has nothing to loose and that, to them, funds are guaranteed. While that may be true, the banking industry is conservative and takes change rather slowly.
It is possible that this may change in the future, but not anytime soon.
You can not purchase money orders with credit cards because a money order is same as cash and they can be used almost anywhere. If you could buy them with credit cards It would be like buying cash with your credit card. This would be a major issue in terms of identity theft and credit card fraud. The receiver of all fraudulently purchased money orders would be liable for their own losses. Because the money orders are not attached to any account and they are not successively numbered as they are issued, it would be difficult to track. This would be a costly messy matter.
In addition, bills, from utilities to insurance payments, can be paid with money orders. Allowing money orders to be purchased with credit cards would encourage an increase in the accumulation of debt. People could essentially use a credit card to pay a credit card bill if purchasing money orders with credit cards was an option.
It's just a bad deal all around.
Because you can put a stop payment on a credit card. So its not guaranteed. If you get a money order for 300 dollars and it cost you 25 dolars to stop payment. Well you do the math. Same with a check.
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