Can You Use a Credit Card to Buy a MoneyPak?

You have to use cash to buy a MoneyPak. You can't buy it with a credit card. The MoneyPak is designed for people who don't have, or don't want to use, credit cards. If you want to use a credit card, you have alternatives, which may be more convenient and less expensive.

Buying a MoneyPak

You buy MoneyPaks in a store. Most U.S. chain drugstores and discount department stores sell them. The Green Dot MoneyPak website provides a store locater that indcates stores in your area that offer MoneyPak. The MoneyPak usually is on display in the section that sells prepaid debit and phone cards. You pay for it at the cash register. The cost is the amount of money you are loading on the card plus a $4.95 service fee. You can load $20 to $500 at most stores and up to $1,100 at Walmart.

Using MoneyPak Instead of a Credit Card

You can use a MoneyPak for a variety of payments. You can use it to buy items on eBay or pay some phone, satellite and credit card bills over the phone or on the Internet. You can also use it to add funds to a PayPal account -- even if you don't have a bank account. You also can use MoneyPak to add money to prepaid cards, which can be used most places credit cards are accepted.

Advantages of MoneyPak Versus Credit Cards

MoneyPaks put limits on your spending. With a credit card, it's possible to spend more than you can afford at the moment, requiring you to make expensive interest payments later. You can accumulate overwhelming amounts of debt. With a MoneyPak, you are limited to the amount of cash you have on hand. MoneyPaks are also convenient for people who are unable to obtain credit cards.

Disadvantages of MoneyPak Versus Credit Cards

A disadvantage of using a MoneyPak is that you must go to a store each time to buy one. Also, you have to pay a fee each time you purchase a MoneyPak. If you are putting $500 on the MoneyPak, the fee may seem reasonable at 1 percent. However, if you are putting the minimum of $20 on a card, the $4.95 fee is 24.75 percent of the value of the MoneyPak. If you lose a MoneyPak card, you will lose all remaining money on the card. If you lose a credit card, your loss will be limited to $50 if you contact the card issuer in a timely fashion. In that regard, carrying a MoneyPak card is riskier than carrying a credit card.