Sending a Money Order: A Step-by-Step Guide

Quick answer

• Money orders are a secure way to send funds when you don’t want to use cash or a personal check.
• You can purchase them at post offices, grocery stores, pharmacies, and convenience stores.
• You’ll need to know the recipient’s name and address, and the amount you wish to send.
• Keep your receipt and the money order stub for your records.
• The recipient will cash or deposit the money order at their bank or a designated cashing location.
• Fees are typically low, but vary by issuer.

Who this is for

• Individuals who need to send money to someone without a bank account.
• People who prefer a more secure alternative to mailing cash or personal checks.
• Those who want a traceable payment method for specific transactions.

What to check first (before you act)

Goal and timeline

Before sending a money order, clarify your objective. Are you paying a bill, sending a gift, or reimbursing someone? Knowing your purpose helps determine the urgency and the best issuer for your needs. If the recipient needs the funds by a specific date, factor in the time it takes for the money order to arrive and be cashed.

Current cash flow

Ensure you have enough readily available cash to cover both the money order amount and the purchase fee. While money orders are generally affordable, the combined cost can add up. Review your current budget and available funds to avoid overspending.

Emergency fund or safety buffer

While not directly related to sending a money order, maintaining an emergency fund is crucial for overall financial health. If an unexpected expense arises that requires immediate cash, having a buffer ensures you can still meet your financial obligations, including paying for a money order, without derailing your budget.

Debt and interest rates

If you are considering using a money order to pay off debt, compare the cost of the money order and any associated fees against the interest you would continue to accrue on that debt. For small debts, the convenience and security of a money order might outweigh minor fees. For larger debts, consider if other payment methods might be more cost-effective if they offer lower transaction costs or allow for partial payments.

Credit impact

Sending a money order does not directly impact your credit score. However, if you are using a money order to pay a debt, failing to do so on time could indirectly affect your credit if the original creditor reports late payments. Always ensure payments are made promptly, regardless of the method.

Step-by-step (how to send money order to someone)

1. Determine the amount needed.

• What to do: Decide the exact amount of money you need to send to the recipient.
• What “good” looks like: You have a clear, confirmed dollar amount for the transaction.
• Common mistake and how to avoid it: Sending an incorrect amount. Avoid this by double-checking the invoice, agreement, or your own records before proceeding.

2. Locate a seller.

• What to do: Find a place that sells money orders. Common locations include the U.S. Postal Service, major grocery stores, convenience stores, and pharmacies.
• What “good” looks like: You know where you can easily purchase a money order.
• Common mistake and how to avoid it: Going to a store that doesn’t sell them. Avoid this by checking the store’s website or calling ahead to confirm they offer money orders.

3. Gather necessary information.

• What to do: You’ll typically need the recipient’s full name and address. Some issuers may require additional identification from you.
• What “good” looks like: You have all the required recipient details readily available.
• Common mistake and how to avoid it: Incorrect recipient information. Avoid this by carefully writing down or confirming the recipient’s name and address to prevent delivery issues.

4. Purchase the money order.

• What to do: Go to the seller and request a money order for the desired amount. You will pay the face value of the money order plus a purchase fee.
• What “good” looks like: You have paid for the money order and received it.
• Common mistake and how to avoid it: Not understanding the fees. Avoid this by asking about the total cost, including the purchase fee, before you pay.

5. Fill out the recipient’s information.

• What to do: On the money order itself, clearly write the recipient’s full name and address in the designated spaces.
• What “good” looks like: The recipient’s details are legible and accurately written.
• Common mistake and how to avoid it: Illegible handwriting or spelling errors. Avoid this by using a dark pen and writing slowly and clearly.

6. Fill out the “purchaser” section (sender’s information).

• What to do: Sign your name in the purchaser’s section and, if there’s a space, write your own address or identification number as required. This helps if the money order is lost or stolen.
• What “good” looks like: Your information is accurately recorded on the money order.
• Common mistake and how to avoid it: Forgetting to sign or fill out your details. Avoid this by completing all sections of the money order as instructed.

7. Keep your receipt and stub.

• What to do: You will receive a receipt and often a stub from the money order. Store these in a safe place.
• What “good” looks like: You have proof of purchase and the tracking information.
• Common mistake and how to avoid it: Losing the receipt or stub. Avoid this by keeping them with important documents or taking a photo of them.

8. Send the money order.

• What to do: Mail the completed money order to the recipient using the U.S. Postal Service or another reliable mail carrier.
• What “good” looks like: The money order is securely sent to the correct address.
• Common mistake and how to avoid it: Mailing it without adequate postage or to the wrong address. Avoid this by using the correct postage and verifying the mailing address.

9. Recipient cashes or deposits the money order.

• What to do: The recipient takes the money order to their bank, a grocery store, or another authorized location to cash it or deposit it into an account.
• What “good” looks like: The recipient successfully receives and uses the funds.
• Common mistake and how to avoid it: The recipient not having proper identification or the money order being for an amount that exceeds the cashing limit. Avoid this by advising the recipient to check with the cashing location about their requirements beforehand.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Incorrect recipient name/address	Delivery failure, delays, or the money order being returned or uncashed.	Double-check all details before filling out the money order. If mailed to the wrong address, attempt to retrieve it or contact the issuer if possible.
Forgetting to sign as purchaser	The money order may not be considered valid, or it could be harder to trace.	Always sign the designated purchaser section.
Losing the receipt or stub	Inability to track the money order or get a refund if it’s lost or stolen.	Keep your receipt and stub in a safe place. Take a photo of them for digital backup.
Not understanding purchase fees	Paying more than expected, potentially making it a less cost-effective option.	Always ask about the total cost, including the purchase fee, before completing the transaction.
Sending an amount that exceeds limits	The money order may be rejected or split into multiple smaller orders.	Check the maximum amount allowed for a single money order with the issuer. You may need to send multiple money orders for larger sums.
Using a non-reputable seller	Risk of purchasing a fraudulent money order or paying inflated fees.	Purchase money orders only from authorized and reputable sources like the U.S. Postal Service or well-known retail chains.
Poorly filled-out money order	Difficulty in cashing or depositing, potential disputes.	Write clearly and legibly with a dark pen. Ensure all required fields are completed accurately.
Not advising the recipient of limits/ID	Recipient may be unable to cash or deposit the money order.	Inform the recipient about potential ID requirements or cashing limits at their chosen location.
Mailing without proper postage	Delay in delivery, or the money order being returned to sender.	Ensure you use the correct amount of postage for the weight and destination of the mail.
Not keeping a record of serial numbers	Difficult to track or prove ownership if the money order is lost or stolen.	Some issuers allow you to record the serial number on your stub or receipt. If not, consider taking a photo of the completed money order (without revealing sensitive personal info).

Decision rules (simple if/then)

• If the amount is over a few hundred dollars, then consider a different payment method or multiple money orders because most issuers have limits on a single money order.
• If you need to send money immediately, then a money order might not be the fastest option due to purchase and mailing times.
• If the recipient has a bank account, then a direct bank transfer or a cashier’s check might be more convenient for them.
• If you are sending money to someone you don’t know well, then a money order offers more security than sending cash.
• If you are concerned about your payment being lost in the mail, then consider using a registered mail service for the money order.
• If you need a refund for a lost or stolen money order, then you will need your original receipt and stub.
• If the recipient needs to cash the money order quickly, then advise them to check with their bank or a local retailer about their cashing policies and required identification.
• If you are sending a small gift to a child or someone without easy access to a bank, then a money order is a practical and safe choice.
• If you are paying for a service where proof of payment is critical, then the traceability of a money order (with your receipt) is beneficial.
• If the recipient is in another country, then a money order is generally not suitable; look for international money transfer services.
• If you are worried about fraud, then only purchase money orders from trusted, authorized sellers.
• If the money order is for a large sum, then consider if the fees make it a more expensive option than other payment methods.

FAQ

What is a money order?

A money order is a prepaid certificate, similar to a check, that guarantees payment. You pay the face value of the money order plus a small fee to purchase it.

Where can I buy a money order?

You can typically buy money orders at U.S. Post Offices, major grocery stores, convenience stores, pharmacies (like CVS or Walgreens), and at some check-cashing businesses.

How much does a money order cost?

The cost, or fee, for a money order varies by issuer but is usually around $1 to $5. The U.S. Postal Service generally has competitive rates.

Are money orders safe?

Yes, money orders are generally considered safe because they are prepaid. This means the funds are guaranteed, unlike a personal check which could bounce.

What if I lose my money order?

If you lose your money order, you may be able to get a refund or a replacement, but you will need your original receipt and stub. Contact the issuer as soon as possible.

Can I send a money order internationally?

Most money orders sold in the U.S. are intended for domestic use. For international payments, you’ll need to use a specific international money transfer service.

What happens if the recipient’s name is misspelled?

If the misspelling is minor, the recipient may still be able to cash it, especially if they have identification matching the intended name. However, for significant errors, it could cause problems, and the recipient might need to contact the issuer.

Can I get a refund for a money order I purchased?

If the money order has not been cashed, you can typically request a refund or replacement from the issuer, provided you have the original receipt and stub. There may be a fee for this service.

What is the maximum amount for a money order?

The maximum amount for a single money order varies by issuer. For example, the U.S. Postal Service has a limit per money order, and for larger amounts, you would need to purchase multiple money orders.

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

• International money transfers: This guide focuses on domestic money orders. For sending funds abroad, explore services specializing in international remittances.
• Specific issuer fees and limits: While we discussed fees, exact amounts and maximums vary. Check directly with the issuer (e.g., U.S. Postal Service, Western Union, MoneyGram) for current details.
• Dispute resolution for cashed money orders: This guide covers purchasing and sending. If a dispute arises after a money order has been cashed, it may involve legal or financial advisory services.
• Using money orders for specific bill payments: While a money order can be used for bills, understanding the biller’s acceptance policies is a separate step.