Money transfers are a secure way to send money by post or make payments to companies that have limited payment options. But if you have a credit card, you’re probably wondering if can u buy a money order with credit card?
How do money transfers work?
Money transfers are similar to checks, as they are paper documents that the recipient can make in cash or deposit into their bank account. With a money transfer, you can pay rent and other bills, send money to family and friends, and even pay for online orders from some retailers.
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.
Can I buy a transfer using a credit card?
Because they are basically like cash, buying a money transfer with a credit card means that the purchase will be coded as a cash advance.
The answer is yes, some buyers may allow you to buy a cash advance with a credit card, but it can be expensive.
Cash advances are usually 5% or 10 USD – whichever is higher. So for a $ 100 money transfer, you’ll pay $ 10, and a $ 500 money transfer for $ 25.
However, this is not all. Here are some other things to keep in mind when purchasing a money transfer with a credit card:
You’ll pay a higher interest rate: Most credit cards have an “APR cash advance” which is higher than the normal APR purchase.
There is no grace period: Unlike most credit card purchases, interest begins to accrue interest immediately. This means that you will probably owe more money from fees each day after the day you withdraw cash, until you pay it back.
Repayment can be difficult: when you make a minimum payment by credit card, the card issuer decides where to allocate it – and it will probably be related to your debt at the lowest interest rate.
You can buy a money transfer with a credit card, but it’s worth checking to see if this is the best option, because companies that issue money transfers to credit cards usually charge additional fees and a higher interest rate.
