What's wrong with money order while paying off a pdl?

I had taken out a payday loan around 3 years ago and completely forgot about it as I went through some dire hardships! Recently a collection agency has reached out to me and asked me to pay the amount by credit card, otherwise they’d take me to court. I do not have a credit card and I want to pay them using a money order. Is their demand legal and justified? Can I really go to jail?
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