How to Make a Money Order

Quick answer

• Identify a location that sells money orders (post offices, grocery stores, convenience stores, banks).
• Bring a valid photo ID and sufficient cash or a debit card to cover the order amount plus fees.
• Fill out the money order carefully, including the payee’s name and your own.
• Keep your receipt for your records and for tracking if needed.
• Understand the purchase limits; you generally cannot buy a single money order for a very large sum.
• Be aware of potential fees, which vary by issuer and location.

Who this is for

• Individuals who need to send payments without a personal check or bank account.
• People who want a secure and traceable payment method for specific transactions.
• Those who prefer to pay with cash or a debit card rather than a credit card for a payment.

What to check first (before you act)

Your Payment Goal and Timeline

Before you can make a money order, you need to know exactly why you are sending money and when it needs to arrive. Is this for rent, a bill, a gift, or a specific purchase? Knowing the recipient and the urgency will help you choose the right type of money order and ensure it reaches its destination on time.

Current Cash Flow

Money orders are typically purchased with cash or a debit card. You’ll need to ensure you have the funds readily available to cover both the amount of the money order and any associated fees. Review your current bank balance or available cash to avoid overspending or needing to make a trip back.

Emergency Fund or Safety Buffer

While not directly related to making a money order, it’s always wise to ensure your essential financial needs are met. If purchasing a money order will significantly deplete your emergency fund or leave you short for immediate expenses, it might be prudent to explore alternative payment methods or delay the payment if possible.

Debt and Interest Rates

If the payment you’re making is to service debt, understand the interest rates associated with that debt. Money order fees are generally a one-time charge. If you’re paying off high-interest debt, prioritizing that repayment might be more financially beneficial than using a money order for a non-essential purchase. Check the terms of your existing debts to ensure you’re making the most financially sound decision.

Credit Impact

Purchasing a money order generally has no direct impact on your credit score. However, if you are using a money order to pay a bill that would otherwise go to collections or negatively affect your credit, then using a money order can indirectly help protect your credit score. Conversely, if you’re using a credit card to purchase a money order (which some retailers allow, though it may incur extra fees), that transaction might appear on your credit card statement.

Step-by-step (simple workflow)

1. Determine the amount needed.

• What to do: Decide the exact amount you need to send to the recipient.
• What “good” looks like: You have a precise dollar figure for the payment.
• Common mistake and how to avoid it: Underestimating the total cost. Always confirm the final amount needed with the payee, including any fees they might expect you to cover.

2. Locate a seller.

• What to do: Find a place that sells money orders. Common locations include U.S. Post Offices, many grocery stores, convenience stores, and some banks.
• What “good” looks like: You know where you can purchase a money order conveniently.
• Common mistake and how to avoid it: Assuming all stores sell them. Call ahead or check online if you’re unsure, especially if you have a specific issuer in mind.

3. Gather your payment method and ID.

• What to do: Bring enough cash or a debit card to cover the money order amount plus fees. You will also need a valid, government-issued photo ID (like a driver’s license or passport).
• What “good” looks like: You have the necessary funds and your ID ready.
• Common mistake and how to avoid it: Forgetting your ID or not having enough cash. Sellers are required to verify your identity for security.

4. Complete the application/purchase at the counter.

• What to do: Inform the cashier the amount of the money order you wish to purchase.
• What “good” looks like: The cashier understands your request and begins the transaction.
• Common mistake and how to avoid it: Not being clear about the amount. This can lead to delays or incorrect purchases.

5. Fill out the money order.

• What to do: Carefully write the payee’s full name in the designated “Pay to the Order of” section. Write your own name and address in the “Purchaser” or “From” section.
• What “good” looks like: All fields are legible, accurate, and complete.
• Common mistake and how to avoid it: Making errors or using abbreviations the payee won’t recognize. Double-check spellings and ensure the payee’s name is exactly as they provide it. Leave the “Memo” line blank unless instructed otherwise by the payee.

6. Pay for the money order and fees.

• What to do: Hand over your cash or debit card for the total amount (money order value + seller’s fee).
• What “good” looks like: The transaction is completed successfully.
• Common mistake and how to avoid it: Not accounting for the fee. Fees are separate from the money order amount and vary by seller.

7. Receive and secure your receipt.

• What to do: The seller will give you the money order and a receipt.
• What “good” looks like: You have both the money order and the receipt.
• Common mistake and how to avoid it: Losing the receipt. This is crucial for tracking or if the money order is lost or stolen.

8. Send the money order.

• What to do: Mail the money order to the payee. For added security, consider using certified mail with a return receipt requested.
• What “good” looks like: The money order is sent via a reliable method.
• Common mistake and how to avoid it: Mailing it without any tracking. This leaves you with no recourse if it goes missing in the mail.

9. Keep your receipt until the transaction is confirmed.

• What to do: Store the receipt in a safe place until you have confirmation from the payee that they have received and cashed the money order.
• What “good” looks like: You have peace of mind knowing you can track or replace the order if necessary.
• Common mistake and how to avoid it: Discarding the receipt too soon. It’s your proof of purchase and your key to any dispute resolution.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not checking payee’s name spelling	Money order may be rejected or delayed if the name is incorrect.	Double-check the spelling with the payee before writing it on the money order.
Forgetting to sign the “Purchaser” section	May cause issues if you need to track or inquire about the money order later.	Always fill out all required fields, including your name and address as the purchaser.
Using abbreviations or unclear handwriting	The payee may have trouble cashing it, or it could be deemed invalid.	Write legibly and use full names and addresses. Avoid slang or shorthand.
Losing the receipt	You have no proof of purchase, making it difficult or impossible to track, cancel, or get a refund if lost.	Keep your receipt in a safe, designated place until you confirm the money order has been cashed. Consider taking a photo of it.
Not accounting for seller fees	You may not have enough cash or funds to complete the purchase, leading to embarrassment or delay.	Always ask about the total cost, including fees, before filling out the money order.
Buying a money order for an amount exceeding limits	The transaction may be refused, or you might need to purchase multiple money orders.	Check the purchase limit for money orders at your chosen seller. If your amount exceeds it, you may need an alternative payment method or multiple orders.
Not verifying the payee’s identity (if applicable)	While less common for standard payments, for high-value transactions, ensuring the payee is legitimate is key.	For significant amounts, consider if a more secure method like a cashier’s check or wire transfer is more appropriate, or if you need additional verification from the payee.
Mailing the money order without tracking	If it gets lost in the mail, you have no way to prove it was sent or to recover the funds.	Use certified mail with return receipt requested for important payments, especially rent or official fees.
Not understanding expiration or dormancy rules	Some money orders may have fees or become void after a certain period of inactivity.	Check the terms and conditions of the money order issuer. Send the money order promptly to avoid these issues.

Decision rules (simple if/then)

• If you need to send money to someone without a bank account, then use a money order because it’s a widely accepted form of payment.
• If the amount you need to send is over $1,000 (or the seller’s limit), then you will likely need to buy multiple money orders because individual money orders have purchase limits.
• If you are paying rent and want proof of delivery, then send the money order via certified mail with return receipt requested because this provides tracking and confirmation of receipt.
• If you are paying a bill and want to avoid potential late fees, then make sure to purchase and mail the money order well in advance of the due date because mail delivery takes time.
• If you only have a credit card and need to make a payment, then a money order might not be the best option because many sellers do not accept credit cards for money order purchases and those that do may charge an additional fee.
• If you are unsure of the payee’s exact name, then ask them to spell it out for you before filling out the money order because an incorrect name can cause problems.
• If you are making a payment to a government agency, then check their specific payment instructions because some agencies have preferred methods or limitations on money orders.
• If you are sending money to a friend or family member as a gift, then a money order is a good option because it’s more personal than a wire transfer and safer than sending cash.
• If you are concerned about the security of sending cash through the mail, then use a money order because it’s a more secure alternative.
• If you lose your money order before it’s cashed, then your receipt is crucial because it may allow you to track it or potentially get a refund or replacement, depending on the issuer’s policy.
• If you have a large amount to send and need it to be immediate, then a money order might not be the fastest method; consider a wire transfer or cashier’s check instead because they are typically processed more quickly.

FAQ

What is a money order?

A money order is a prepaid certificate that guarantees payment. You pay the exact amount of the order plus a small fee upfront, and the issuer guarantees that the recipient will receive the funds.

Where can I buy a money order?

You can typically purchase money orders at U.S. Post Offices, many grocery stores, convenience stores, drugstores, and some banks.

How much does a money order cost?

The cost of a money order is usually a small fee, typically ranging from $1 to $3, plus the amount of the money order itself. Fees vary by issuer and location.

Can I buy a money order with a credit card?

Some retailers allow you to purchase money orders with a debit card, but it’s less common to be able to use a credit card. If a credit card is accepted, it may incur additional fees.

What if I make a mistake on the money order?

If you make a significant error, you may need to get a refund and purchase a new one. For minor mistakes, contact the issuer; however, it’s best to write legibly and accurately the first time.

How do I track a money order?

You can usually track a money order through the issuer’s website or by contacting their customer service, provided you have your receipt with the tracking number.

What happens if a money order is lost or stolen?

If you have the receipt, you can typically report it to the issuer. They may be able to track it or issue a refund or replacement, though this process can take time and may involve fees.

Are money orders safe?

Yes, money orders are generally considered safe because they are prepaid, meaning the funds are guaranteed. They are also more secure than sending cash through the mail.

What is the maximum amount for a money order?

The purchase limit for a single money order varies by issuer, but it’s often around $500 or $1,000. For larger amounts, you would need to purchase multiple money orders.

What this page does NOT cover (and where to go next)

• International money orders: This guide focuses on domestic U.S. money orders. For international payments, you’ll need to research specific services that handle international money transfers.
• Specific issuer policies: While general procedures are covered, each money order issuer (e.g., USPS, Western Union, MoneyGram) may have unique terms, conditions, and fee structures.
• Alternative payment methods: This article is specifically about money orders. For information on checks, cashier’s checks, wire transfers, or digital payment apps, you’ll need to consult resources on those topics.
• Dispute resolution for fraudulent activity: While receipts help, complex disputes or suspected fraud may require contacting law enforcement or consumer protection agencies.