Money transfers are a secure way to send money by post or make payments to companies that have limited payment options. Can buy money order with credit card?
What is money transfer?
Money transfers are a guaranteed payment for a specific dollar amount that can be used to pay bills or send money to specific people. You can use money transfers just like cash. But unlike cash, you’ll receive a receipt that allows you to track funds or report the loss or theft of a money transfer.
Buying a money transfer with a credit card
You can buy a money transfer with a credit card, but this is not the smartest or cheapest option. Although credit card issuers allow the purchase of money orders, there are some disadvantages to consider.
Advantages of money transfers
Money transfers have some advantages over cash and checks, which helped them stay on stage. First, they are traceable. When you buy a money transfer, you get an invoice with the date of purchase, amount in dollars, and a bank code that you can use to track it. This makes remittance transfers safer than most other forms of payment, and, unlike cash, you may be able to replace it if it is lost or stolen.
Money transfers are different from cash, checks or both in four other important ways:
- Almost universal acceptance. Money orders are paid at the time of purchase and, unlike personal checks, funds are guaranteed.
- No worries about overdraft. There is no transfer account for money orders.
- Cash at a distance. Money transfers can be paid in one place and issued in another. This makes it a very convenient way to send money to someone in a short time – for example, to your son or daughter who travels or goes to school and urgently needs cash.
4 alternatives to remittances
Most people buy money transfers when they don’t have a bank account, want to keep their private account numbers, and don’t want to send money by post. However, in each of these situations, money transfer is not the only option.
Here are some alternatives:
- Pay bills or rent with a credit card: Try the Plastiq service, which allows you to pay bills with a credit card for a 2.5% fee.
- Send money in the country: use online platforms such as Venmo or PayPal, which allow you to finance a transfer with a credit card at around 3%. Or, if you have money in your checking account, use the bank bill payment service.
- Send money abroad: if the recipient does not have access to US platforms, you can use Revolut or TransferWise (fees depend on the type of currency, but are generally lower than remittances).
- Pay a stranger for a large purchase: Let’s say you bought a new car on Craigslist. If you are afraid to give the seller a check or cashier’s check with the information on it, you can pay via one of the online platforms above. You can also buy a money transfer with a debit card. (If you don’t have money in your bank account, maybe think about whether you really need this thing!)