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Money orders are a secure way to pay someone and are often preferred over checks. You might wonder if you can use a gift card to purchase a money order, considering they function like cash in some ways.
This guide will explain if gift cards can be used for money order purchases and provide helpful tips.
What’s a money order?
It functions similarly to a check, but with a key difference, making it a more reliable payment method.
Unlike checks, money orders are prepaid. This means the issuing institution guarantees the funds because you pay for the exact amount of the money order upfront before you receive it.
Like a check, a money order specifies a designated recipient and the amount to be paid.
Why get a money order?
Many situations call for the security and convenience of a money order. Here’s why you might choose a money order:
- It’s a safe way to pay someone if you don’t have a checking account: Lacking a checking account doesn’t limit your ability to make secure payments. Money orders provide a safe alternative to carrying large sums of cash, especially for larger purchases. They function like pre-paid cash, guaranteeing the recipient receives the exact amount.
- You get a receipt: Every money order purchase comes with a crucial receipt. This document serves as your official proof of payment detailing the transaction. It typically includes the money order number, date of purchase, amount paid, and payee information. Keep this receipt securely in your records. It can help track the money order or resolve any discrepancies.
- Money orders don’t bounce: One of the key advantages of money orders is their guaranteed nature. Unlike checks, which can be declined due to insufficient funds in the payer’s account, money orders are prepaid. This means the issuing institution guarantees the value of the money order because you pay for the exact amount upfront. When the recipient goes to cash it, they can be confident the funds are available, ensuring a smooth and reliable transaction.
- They offer more privacy than a personal check: Consider privacy when choosing your payment method. Money orders offer an advantage over personal checks in this regard. Since checks display your bank account information, they can expose some of your financial details. On the other hand, money orders only require the payee’s name and payment amount. This protects your sensitive banking information while ensuring a secure transaction.
- You’re protected from theft: Money orders protect your funds against theft. Unlike cash, which is vulnerable if lost or stolen, money orders act like insured cash. You significantly reduce the risk of unauthorized use by designating a specific payee on the money order. Only the named recipient can claim the funds even if the money order is misplaced. This makes them a secure option for mailing payments as well.
How much does a money order cost?
The cost of a money order depends on where you purchase it. Generally, expect to pay around $1.50 or less.
Pricing structures vary. Some retailers offer a flat fee, while others charge a percentage of the money order amount. Be aware that some places may have a higher fee for larger denominations. Certain banks might provide money orders for free to account holders, but this is less common. Always inquire about fees before finalizing your money order purchase.
Can you buy a money order with a gift card?
While money orders are widely accepted as payments, using gift cards to purchase them is generally not allowed. However, there are some exceptions and important details to consider.
Generally, store-specific gift cards (like those from CVS or Rite Aid) cannot be used to buy money orders. These cards are designed for purchases within that specific store.
Your best option lies with prepaid cards that function like debit cards and carry a Visa or Mastercard logo. Examples include Vanilla Visa, Green Dot, and Netspend. Money order issuers may accept these cards because the transaction can be processed similarly to a debit purchase.
To obtain a money order with a compatible prepaid card, visit a retailer that sells them. Specify the payee (recipient) and fill out the money order with their name.
Money orders typically have a purchase limit between $500 and $1,000. For larger amounts, consider alternative payment methods or purchasing multiple money orders. Some retailers may require ID verification during the purchase.
Finding locations that accept gift cards for money orders can be challenging. Most retailers will only accept debit or cash for this transaction. While a few exceptions exist, researching these specific sellers beforehand is crucial.
Walmart
With its vast network of stores nationwide, Walmart stands out as a convenient option for purchasing money orders. A significant portion of the population lives within close proximity to a Walmart.
Walmart facilitates money order purchases at its Supercenter and Neighborhood Market locations. To initiate the transaction, go to the Customer Service Desk or Money Services Center.
Here’s a quick rundown of what to expect at Walmart:
- Fees: The maximum fee is $0.88, but the exact cost can vary depending on the location.
- Limit: The maximum purchase amount per money order is $1,000.
- Provider: MoneyGram serves as the money order provider at Walmart.
USPS
The United States Postal Service (USPS) is another excellent location for acquiring money orders. With a vast network of over 31,000 Post Offices nationwide, you will likely find a convenient location nearby.
Here’s a breakdown of what to expect at the USPS:
- Fees: The cost depends on the amount of money order. Expect to pay $1.45 for money orders up to $500 and $1.95 for those exceeding $500 but not more than $1,000.
- Limit: The maximum purchase amount per money order is $1,000.
- Provider: Unlike some retailers that partner with external money order providers, the USPS uses its own brand of money orders.
Western Union
Western Union offers more than international money transfers. They also partner with various agent locations to sell money orders. This means you can walk into a participating store and purchase a money order, similar to a prepaid check, for your recipient to cash. Finding a nearby vendor is easy—just use the handy location finder on the Western Union website.
Head over to the Western Union website, and you’ll see a “Find Locations” section. Pop in your zip code and click search. Once you have your results, there’s a handy filter section. Look for “Money Order” and click it. Voila! The map will refresh to show only Western Union agent locations selling money orders in your area. Simple as that! Now, you can find the closest location and get your money order quickly.
It’s crucial to understand how gift cards function at Western Union. While Western Union is a great option for money transfers and other services, accepting gift cards for money order purchases isn’t universal. Only certain Western Union agent locations can process gift cards, and even then, they must be able to handle pin-based debit transactions. This means a standard gift card without a pin might not be accepted.
It’s important to remember that fees and limits can vary depending on the specific location you visit. To avoid any surprises, I recommend calling your chosen Western Union agent beforehand. Ask about their current fees for money orders, any sending limits in place, and, most importantly, whether they accept gift cards as a payment method. This quick call will save you time and ensure you have all the information you need for a successful money order purchase.
Places that don’t accept gift cards for money orders
While gift cards are a convenient way to make purchases, they cannot be used everywhere. This is especially true when buying money orders. Many stores have policies restricting the use of gift cards for this specific transaction.
Here are some common retailers that do not accept gift cards for money order purchases:
- 7-Eleven
- Albertsons
- CVS
- Family Fare
- Fred Meyer
- Kmart
- Kroger
- Meijer
- Publix
- Rite Aid
- Smith’s
- Vons
- Walgreens
- Winn-Dixie
The bottom line
While gift cards offer purchasing flexibility, their use for acquiring money orders is limited. Understanding these limitations is crucial for those seeking to convert gift card value into a more universally accepted form, like a money order.
The key lies in the type of gift card. Prepaid cards branded with Visa or Mastercard often function similarly to debit cards in the payment system. These cards might be accepted for money order purchases at certain locations. However, traditional store-specific gift cards are not suitable for this purpose.
Before attempting to use a gift card for a money order, it is highly recommended that you contact the retailer directly. This ensures you know their specific policy and avoids any potential inconvenience. Some common locations accepting prepaid cards with a PIN for money order purchases include Walmart, USPS offices, and select Western Union branches. Remember, individual store policies vary, so a quick call can save you time and ensure a smooth transaction.