How to use Amex Gift Cards to buy money orders

I get lots of emails (and search traffic) from people wanting to know how to use Amex gift cards to buy money orders. The simple answer is you can’t do it, at least not directly.

You can’t buy money orders with a credit card, which is how Amex gift cards are processed. You need a PIN-enabled gift card or debit card for money order purchases. The good news is that there is a slightly tedious workaround if you really want to cash out your amex gift cards. It can be costly but it is possible if you really need the cash.

Here’s a look at some ways you can use Amex gift cards to buy money orders:

Why bother with Amex gift cards?

If using Amex gift cards to buy money orders is so tedious, why do people bother? Back in the day, shopping portals offered significant cash back on Amex gift cards. These promotions offered around 2% cash back on Amex gift cards, making them lucrative to purchase. For example, a $5,000 order would generate $100 cash back.

So a lot of folks would buy them and then find ways to liquidate them for a profit.

Shopping portals are no longer offering cash back on Amex gift cards, so fewer people order them online. However, sometimes retailers like Staples or Safeway will run Amex gift card sales that waive the fee or make them profitable to purchase.

Other people end up receiving Amex gift cards as gifts but would prefer to cash them out. Regardless of how you ended up with one, here are some ways you can cash out amex gift cards via money orders or other methods:

How to buy money orders with Amex gift cards

You can only buy a money order with a PIN-enabled gift card and Amex gift cards don’t have PINs. So if you want to use Amex gift cards to buy money orders, you’ll have to use a workaround.

It’s a bit tedious, but possible. Here are the steps for using Amex gift cards to buy money orders:

1. Use your Amex gift card to purchase a PIN-enabled Visa gift card
2. Next, use the Visa gift card to buy a money order. Many Visa gift cards (especially those issued by Metabank) are treated like debit cards, so they should work for money order purchases.
3. Write the money order out to yourself and deposit it into your bank account.
4. Use the funds to pay your credit card bill.

Purchases made with American Express gift cards are processed like credit card transactions. So the challenge in this scheme is finding a store that will accept credit cards for Visa gift card purchases. The more challenging part is finding a place that will accept debit cards for money orders purchases.

Where I live, I no longer have access to a money order source, so this entire scheme is out of the question for me. But I know plenty of people who manage to make it work.

If you can get over these two obstacles, you can use Amex gift cards to buy money orders indirectly and effectively cash out your balance.

If you got a little overzealous ordering Amex gift cards during a sale and have a large amount left to liquidate, then this drawn-out method can make sense. Just be weary of the fees involved.

The cost of using Amex gift cards to buy money orders

When cashing out your Amex gift cards, it’s important to be aware of the costs you might incur. If you’re deciding whether to cash out your Amex gift cards via money orders, then you should consider these fees before going this route:

• Amex gift card fee: $3.95 fee per $2,000.
• Amex gift card shipping fee: $5.95 – $8.95 per order.
• Visa gift card fee: $3.95 fee per $500.
• Money order fee: $0.20 – $0.89 (limits vary depending on where you buy money orders).

Other ways to cash out Amex gift cards

Using Amex gift cards to buy money orders is a tedious process and costly. Luckily, there are other ways you can cash out Amex gift cards. These methods are simpler, more accessible and might work out cheaper. Here’s a look at your options:

Sell your Amex gift card

You can sell your Amex gift cards for cash on marketplaces like Raise and Prestmit. You won’t get the full value of your gift card, but it’s a decent option if you need the cash quickly. Raise

Use your Amex gift card for retail arbitrage

If you want to cash out your Amex gift card without losing its value, consider using it for retail arbitrage. You can use the card to pay for products and then resell them on Poshmark, eBay, or Craigslist. Depending on the product, you might even turn a profit this way.

Retail arbitrage can be rewarding, but just be aware of the risks: The item(s) you purchase may not sell, or you might deal with annoying customer returns and damaged products. Be sure to evaluate this option carefully.

Order merchandise for buying groups

A great way to cash out your Amex gift card at minimal lose is to order merchandise for buying groups. Most people use buying groups to earn credit points from the comfort of their laptops.

Buying groups recruit people to purchase popular merchandise for them when it goes on sale (iPads, Macbooks, Kindles, etc.). They usually pay out the retail price or slightly below, depending on the item and time of year. Sometimes they even pay out above retail, which is a great opportunity for you to cash out your Amex gift cards at minimal cost.

Use your Amex gift card to pay bills

Using your Amex gift card to pay bills is an excellent way to unload the balance. You can use an Amex gift card to pay bills much like you’d use any credit card. In some cases, you might have to register you gift card through Amex and add a billing address before it will work for bill payments.

Once you’ve set up, you can use it to pay your cell phone bills, utilities and virtually anything else. This is probably the most practical and easiest way to cash out an Amex gift card without using losing its value.

Request a refund

If your Amex gift card has a low balance, you might be able to request a cash refund. Depending on the state you live in, you can request cash for gift card balances between $0.99 and $9.99.

In some states, refunds will be automatically initiated if your gift card has been inactive for a while.

Cash out Amex gift cards via PayPal

PayPal accepts Amex gift cards for payments. So you can cash out your Amex gift card by sending money to a trusted friend or family member. You’ll pay a 3% fee to do this, but it can be worth it if you have no other way to cash out Amex gift cards.

How to use Amex gift card online

You can use Amex gift cards online to purchase a Visa gift card or merchandise, as long as you register the card first. American Express allows you to register gift cards online an include a billing address, name and phone number.

Once your Amex gift card is registered, you can start using it online like any credit card. When you make a purchase with your Amex gift card, simply enter the billing address you provided during registration. Your transaction will get processed like any credit card would.

If you try to use amex gift cards online without registering them first, your transaction will likely get declined. That’s because most merchants will ask you for a billing number and match that against the registered card’s address. If your card doesn’t have a billing address, your transaction won’t go through.

So just remember to register your Amex card and provide the correct billing information at check-out when shopping online.

Frequently Asked Questions

This story was originally published on April 22, 2015. It has been updated with current information.