How Much Does It Cost to Get a Money Order?

Quick answer

• Money order fees typically range from $0.50 to $3.00, but can vary by issuer and location.
• Some retailers offer fee-free money orders with qualifying purchases or specific loyalty programs.
• The cost is a flat fee, not a percentage of the money order amount.
• Additional fees might apply for lost or stolen money orders, or for cashing them at certain locations.
• Always check the specific fee schedule of the issuer before purchasing.
• Consider alternatives like prepaid debit cards or cashier’s checks if money order fees are a concern.

Who this is for

• Individuals who need to send payments without a bank account or personal check.
• People who want a secure and trackable payment method for specific transactions.
• Consumers looking for a cost-effective way to pay bills or send money to individuals, compared to some other payment methods.

What to check first (before you act)

Goal and timeline

Before you even think about the cost, clarify why you need a money order and when the payment is due. Are you paying a landlord, sending money to a family member, or making a one-time bill payment? Knowing your deadline will help you determine if a money order is the most efficient and cost-effective solution. If the deadline is immediate, you’ll need to find a convenient location that offers money orders.

Current cash flow

Understand your current financial situation. Do you have enough readily available cash to cover both the amount of the money order and the purchase fee? Overspending or purchasing a money order that strains your immediate cash flow can lead to other financial problems. Ensure you have a clear picture of your income and expenses before committing to this payment method.

Emergency fund or safety buffer

Having an emergency fund is crucial. If purchasing a money order for a non-essential purpose would deplete your emergency savings, it’s a sign you might need to reconsider your spending priorities or find a less costly payment method. A healthy emergency fund protects you from unexpected expenses and prevents you from making rushed financial decisions.

Debt and interest rates

While money orders themselves don’t accrue interest, the decision to purchase one might be influenced by your debt situation. If you’re considering a money order to pay off a debt, compare the money order fee to any late fees or interest you might incur by delaying the payment. If you’re using funds that were earmarked for debt repayment, ensure the fee doesn’t significantly impact your debt reduction progress.

Credit impact

Purchasing a money order generally has no direct impact on your credit score. However, if you are considering using a credit card to purchase a money order (which is often not allowed or incurs significant fees), this could indirectly affect your credit utilization ratio. It’s best to pay for money orders with cash or a debit card.

Step-by-step (simple workflow)

1. Determine the exact amount needed:

• What to do: Calculate the total amount you need to pay, including any fees.
• What “good” looks like: You have a precise figure for the money order and the total cost of purchase.
• Common mistake: Underestimating the total cost by forgetting the purchase fee.
• How to avoid it: Always add an estimated fee to your payment amount before heading out.

2. Locate an issuer:

• What to do: Find a place that sells money orders, such as post offices, convenience stores, grocery stores, or financial institutions.
• What “good” looks like: You’ve identified a convenient and accessible location.
• Common mistake: Assuming all locations have the same fees or availability.
• How to avoid it: Check online or call ahead to confirm the issuer and their typical fee range.

3. Check specific fees:

• What to do: Inquire about the exact cost to purchase a money order at your chosen location.
• What “good” looks like: You know the precise fee before you buy.
• Common mistake: Not asking for the fee upfront and being surprised at the register.
• How to avoid it: Ask the cashier or look for posted fee schedules.

4. Verify purchase limits:

• What to do: Understand the maximum amount you can purchase in a single money order and potentially per day.
• What “good” looks like: You know if you need multiple money orders for your payment.
• Common mistake: Reaching the purchase limit and needing to make multiple trips or find another solution.
• How to avoid it: Be aware of limits, especially for large payments.

5. Gather payment method:

• What to do: Have the required payment method ready (usually cash or debit card).
• What “good” looks like: You have the correct funds readily available.
• Common mistake: Arriving with a credit card, only to find it’s not accepted.
• How to avoid it: Confirm accepted payment methods beforehand.

6. Purchase the money order:

• What to do: Pay for the money order and the fee.
• What “good” looks like: You receive the money order and a receipt.
• Common mistake: Losing the receipt immediately after purchase.
• How to avoid it: Keep the receipt in a safe place with the money order.

7. Complete the money order:

• What to do: Fill in the payee’s name and your address accurately.
• What “good” looks like: The money order is filled out legibly and correctly.
• Common mistake: Leaving the payee line blank or making errors that could invalidate it.
• How to avoid it: Write clearly and double-check spelling.

8. Send the money order:

• What to do: Mail or deliver the money order to the intended recipient.
• What “good” looks like: The payment is sent promptly.
• Common mistake: Delaying sending the money order, causing the payment to be late.
• How to avoid it: Send it out as soon as possible after purchase.

9. Keep records:

• What to do: Store the receipt and a copy of the money order (if possible) for your records.
• What “good” looks like: You have documentation in case of issues.
• Common mistake: Discarding the receipt, making it impossible to track or replace a lost money order.
• How to avoid it: File receipts in a designated place.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not checking fees upfront	Overpaying, unexpected costs, potential need to find a cheaper alternative.	Always ask for the exact fee before purchasing or check the issuer’s posted rates.
Using a credit card to buy a money order	High cash advance fees, interest charges, potential denial of transaction.	Use cash or a debit card. Check issuer policies, as many do not allow credit card purchases.
Forgetting the purchase fee	Insufficient funds at the register, delayed transaction, potential embarrassment.	Calculate the total cost (payment amount + fee) before going to the store.
Leaving the payee line blank	Risk of theft or misuse, potential invalidation of the money order.	Fill in the payee’s name accurately and legibly. If unsure, use “Cash” only if permitted and immediately endorse it to someone else.
Making errors when filling out the money order	Delayed payment, returned money order, potential need to repurchase.	Write clearly and double-check all information, especially names and addresses.
Losing the money order or receipt	Difficulty in tracking, potential loss of funds, inability to get a refund.	Keep the receipt in a safe place and consider taking a photo of the completed money order.
Not being aware of purchase limits	Needing multiple money orders, inconvenience, potential inability to complete a large payment.	Check the issuer’s maximum purchase limits per money order and per day.
Waiting too long to send the money order	Late payment, potential late fees, damage to relationships with the payee.	Mail or deliver the money order promptly after purchase.
Assuming all issuers are the same	Unexpected fees, inconvenient locations, different policies.	Research different issuers (e.g., USPS, Walmart, Western Union) for their specific costs and locations.
Not understanding how to cash a money order	Difficulty in accessing funds, potential fees for cashing.	Check the issuer’s policy for cashing. Some may only cash them at specific locations or charge a fee.

Decision rules (simple if/then)

• If you need to send a payment and don’t have a bank account, then a money order is a viable option because it’s a prepaid instrument.
• If the payment amount is over $1,000, then you will likely need multiple money orders because most issuers have a maximum limit per order.
• If you are paying a landlord or a business that requires a traceable payment, then a money order is a good choice because it provides a record of payment.
• If you find a money order with a $0 fee, then verify it’s not tied to a specific purchase or loyalty program that you don’t qualify for, because the fee might be waived under certain conditions.
• If you are considering buying a money order with a credit card, then don’t because it usually incurs high cash advance fees and interest.
• If you lose your money order receipt, then contact the issuer immediately to inquire about tracking or replacement options because it’s your only proof of purchase.
• If the cost of the money order fee is a significant concern for your budget, then explore alternative payment methods like prepaid debit cards or a cashier’s check because their fee structures might be more favorable.
• If the payee is unsure about accepting a money order, then consider a cashier’s check or a wire transfer because these are often perceived as more secure.
• If you are sending money internationally, then a money order is generally not the best option because they are typically for domestic use, and international money transfer services are more suitable.
• If you need to send a small, urgent payment, then a money order might be faster than waiting for a personal check to clear, but slower than an instant digital payment if available.
• If you are buying a money order for a large sum, then be prepared to show identification because issuers often require it for security reasons.

FAQ

What is the typical cost of a money order?

The fee for a money order usually falls between $0.50 and $3.00. However, this can vary significantly depending on where you purchase it, such as a post office, grocery store, or convenience store.

Are there any ways to get a money order for free?

Some retailers, like certain grocery stores or supermarkets, may offer fee-free money orders if you make a qualifying purchase or are a member of their loyalty program. It’s worth checking local store promotions.

Can I buy a money order with a credit card?

Generally, no. Most places that sell money orders will only accept cash or a debit card. Attempting to use a credit card may result in high cash advance fees from your credit card company.

What happens if I lose my money order receipt?

Losing your receipt can make it difficult to track the money order or get a refund if it’s lost or stolen. Contact the issuer immediately to see if they have a process for replacement, which often involves a fee and waiting period.

How much money can I get on a single money order?

Most money orders have a maximum value limit, typically around $500 or $1,000 per order. If your payment is larger, you’ll need to purchase multiple money orders.

Is it safe to send a money order?

Yes, money orders are considered a safe payment method, especially compared to personal checks, because they are prepaid. However, it’s crucial to fill them out correctly and keep the receipt.

Can I cash a money order at any bank?

Not necessarily. While some banks will cash money orders for non-customers, they often charge a fee. It’s usually easiest to cash them at the location where you purchased them or at the issuing institution.

What information do I need to buy a money order?

Typically, you only need the cash or debit card to pay for the money order and its fee. For larger amounts, some issuers may require a valid photo ID for security purposes.

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

• Specific issuer policies and fee schedules: For exact costs and limitations, check the official website or inquire directly with the money order provider (e.g., USPS, Western Union, MoneyGram, or retailers).
• International money transfers: Money orders are generally for domestic use. If you need to send money abroad, research dedicated international money transfer services.
• Alternatives to money orders: Explore other payment methods like cashier’s checks, prepaid debit cards, or digital payment apps, and compare their costs and benefits for your specific needs.
• Dispute resolution for money orders: If you encounter issues with a money order (e.g., lost, stolen, or fraudulent), understand the specific claim process of the issuer.