How to Purchase and Use a Money Order

Quick answer

• Money orders are a secure way to pay when cash or checks aren’t ideal.
• You can buy them at post offices, grocery stores, convenience stores, and some banks.
• You’ll need to know the payee’s name and the exact amount you want to send.
• Keep your receipt and the money order stub until it’s cashed.
• If lost or stolen, you may be able to get a refund or replacement, but it can take time.
• They are generally safer than sending cash through the mail.

Who this is for

• Individuals who need to send payments without using a personal check or cash.
• People who don’t have a bank account or prefer not to share banking details for certain transactions.
• Those who need a traceable payment method that’s more secure than sending cash.

What to check first (before you act)

Your Payment Goal

Before purchasing a money order, clearly define why you need it. Is it for rent, a bill, or a specific purchase? Knowing the exact amount needed is crucial for buying the correct money order. This will also help you determine if a money order is the most cost-effective or secure payment method for your situation.

Available Funds

Ensure you have enough cash or funds in your bank account to cover the money order’s face value plus any purchase fees. You’ll typically pay for a money order with cash or a debit card. Some places may accept credit cards, but this is less common and might incur extra fees.

Payee Information

You will need the full legal name of the person or business you are paying. Double-check the spelling and accuracy of this information, as errors can cause delays or prevent the money order from being cashed.

Where to Buy

Identify locations near you that sell money orders. Common places include the U.S. Postal Service, major grocery store chains, convenience stores, and some drugstores. Prices and the maximum amount for a single money order can vary by issuer.

Fees and Limits

Be aware that money orders come with a purchase fee, usually a small amount per money order. There are also limits on the maximum value of a single money order, often around \$1,000. If you need to send more, you’ll have to purchase multiple money orders.

Step-by-step (how to get a money order)

1. Determine the Exact Amount: Decide precisely how much you need to pay the recipient. This includes any associated fees if the sender is expected to cover them.

• What “good” looks like: You have a clear, exact dollar and cent amount for your payment.
• Common mistake and how to avoid it: Estimating the amount. Always confirm the exact amount needed to avoid purchasing the wrong value money order.

2. Gather Payee Information: Find out the full legal name of the person or business you are paying. Ensure you have the correct spelling.

• What “good” looks like: You have the payee’s name written down accurately.
• Common mistake and how to avoid it: Misspelling the payee’s name. This can lead to the money order being rejected or delayed. Confirm the spelling directly with the recipient if unsure.

3. Locate a Seller: Identify a nearby location that sells money orders. Common options include post offices, supermarkets, and convenience stores.

• What “good” looks like: You know where you are going to purchase the money order.
• Common mistake and how to avoid it: Going to a store that doesn’t sell them. Check the store’s website or call ahead to confirm they offer money orders.

4. Visit the Seller: Go to your chosen location during their business hours.

• What “good” looks like: You are at the seller’s location and ready to make your purchase.
• Common mistake and how to avoid it: Arriving just before closing time. Some cashiers may not have enough time to process the transaction.

5. Request the Money Order: Inform the cashier you wish to purchase a money order and state the exact amount you need.

• What “good” looks like: The cashier understands your request and the amount.
• Common mistake and how to avoid it: Not specifying the exact amount or asking for a generic “money order.” Be precise with the dollar and cent amount.

6. Pay for the Money Order: You will pay the face value of the money order plus a small purchase fee. Most sellers accept cash or debit cards.

• What “good” looks like: You have paid the full amount and the fee.
• Common mistake and how to avoid it: Not having the correct payment method. Confirm with the seller beforehand if they accept credit cards, as this is often not the case and may incur additional fees.

7. Fill Out the Money Order: Carefully fill in the payee’s name on the designated line. You may also have a line to fill in your own name as the purchaser.

• What “good” looks like: The payee’s name is clearly written in the correct field.
• Common mistake and how to avoid it: Leaving the payee line blank or writing it incorrectly. This can make the money order invalid or easily negotiable by someone else if lost.

8. Sign the Money Order (if applicable): Some money orders require the purchaser to sign them. Check the specific instructions on the money order itself.

• What “good” looks like: You have signed the money order if required.
• Common mistake and how to avoid it: Forgetting to sign if it’s a requirement. This can sometimes invalidate the order.

9. Keep Your Receipt and Stub: The cashier will give you a receipt and often a detachable stub from the money order. Keep both in a safe place.

• What “good” looks like: You have both the receipt and the money order stub.
• Common mistake and how to avoid it: Discarding the receipt or stub. These are essential for tracking the money order and for any potential claims if it’s lost or stolen.

10. Deliver the Money Order: Send the money order to the payee via mail or hand-delivery.

• What “good” looks like: The money order is in the payee’s possession.
• Common mistake and how to avoid it: Mailing it without tracking or to the wrong address. Ensure you use a secure delivery method and confirm the correct address.

11. Track if Necessary: If you’re concerned about delivery or want to confirm it’s been cashed, some money order issuers offer tracking services. This usually requires the serial number from your stub.

• What “good” looks like: You have the information to track your money order if needed.
• Common mistake and how to avoid it: Not noting the money order’s serial number. This number is crucial for tracking and for any claims.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Forgetting to fill in the payee’s name	The money order can be cashed by anyone who finds it; it’s essentially like cash.	Always fill in the payee’s name immediately after purchasing. If you make a mistake, you may need to void it and get a new one, or the issuer might have a process for correction.
Incorrect payee name	The payee may not be able to cash it, or it could be delayed significantly.	Double-check the spelling with the recipient before writing it. If a mistake is made, contact the money order issuer for their specific correction process. This may involve a fee or requiring the payee to endorse it.
Losing the receipt or stub	Inability to track the money order or file a claim if it’s lost or stolen.	Keep your receipt and stub in a safe, memorable place until you confirm the money order has been successfully cashed. Take a photo of the stub with your phone as a backup.
Not knowing the maximum money order limit	You may need to buy multiple money orders, increasing fees and complexity.	Check the maximum amount per money order with the issuer (e.g., \$1,000 for USPS). If your payment exceeds this, plan to purchase additional money orders and send them together.
Using a credit card for purchase	May incur cash advance fees from your credit card company, increasing costs.	Most money order issuers accept cash or debit cards. If you must use a credit card, understand that it might be treated as a cash advance, incurring high interest and fees from your card issuer.
Mailing without confirming the address	The money order could go to the wrong person and be lost or stolen.	Always verify the correct mailing address with the payee. Consider using certified mail or a courier service if the amount is significant and you need proof of delivery.
Forgetting to sign if required	The money order might be invalid or difficult for the payee to cash.	Read the money order carefully. If there’s a line for the purchaser’s signature, sign it. If you forget, contact the issuer about their policy for correction.
Assuming it’s instant like cash	Delays can occur if there are issues with the money order or its delivery.	Understand that while money orders are generally reliable, they are not as instantaneous as cash. Allow a few extra days for delivery and for the payee to process it.
Not checking for fees	The total cost will be higher than expected.	Always ask about or check the purchase fee and any other potential fees (like for tracing or replacement) before buying. Factor these into the total amount you need to pay.
Buying from an unreputable source	Risk of purchasing a fraudulent money order or being overcharged.	Stick to well-known and reputable sellers like the U.S. Postal Service, major retailers, or established financial institutions. Avoid buying from individuals or unknown online sources.

Decision rules (if/then)

• If you need to send a payment and don’t have a bank account, then use a money order because it’s a secure alternative to cash.
• If the payment amount is over \$1,000, then you will need to purchase multiple money orders because most issuers have a per-order limit.
• If you are paying a person and are unsure of their full legal name, then ask them for it before buying the money order because an incorrect name can cause it to be rejected.
• If you are paying a bill and the due date is very soon, then consider a money order only if you can purchase and mail it with ample time for delivery and processing, otherwise explore faster payment methods.
• If you prefer to pay with a debit card, then confirm that the money order seller accepts debit cards before you go, because not all do.
• If you are sending a large sum of money, then keep meticulous records of your money order serial numbers and receipts because this is crucial for tracking and potential claims.
• If you are mailing the money order, then consider using a tracking service or certified mail if available, because this provides proof of delivery.
• If you lose a money order before it’s cashed, then immediately contact the issuer with your receipt and stub to inquire about a refund or replacement, because acting quickly increases your chances.
• If you receive a money order, then endorse it immediately by signing the back in the designated space, because this helps protect you if it’s lost or stolen.
• If you are purchasing a money order for a specific purpose, then ensure the amount you buy is exact to avoid overpaying or needing to buy a second one.
• If you are buying a money order from a convenience store, then be aware that their purchase limits might be lower than at a post office.
• If you want to avoid potential fees, then use cash to purchase your money order if possible, as credit card purchases may incur cash advance fees.

FAQ

What is a money order?

A money order is a prepaid certificate that functions like a check. You pay the face value of the money order plus a small fee to purchase it, and it can then be mailed or given to a payee.

Where can I buy a money order?

You can typically buy money orders at U.S. Post Offices, major grocery stores (like Walmart, Kroger), convenience stores (like 7-Eleven), and some drugstores or financial institutions.

How much does a money order cost?

The purchase fee for a money order is usually quite low, often ranging from \$0.70 to \$2.00, depending on the issuer and the amount of the order.

What is the maximum amount for a money order?

Most money orders have a maximum value limit, commonly around \$1,000 per money order. If you need to send more, you’ll have to purchase multiple money orders.

What happens if I lose my money order?

If you lose a money order before it’s cashed, you can usually file a claim with the issuer for a refund or replacement. You will need your original receipt and the money order stub, and there may be a waiting period.

Can I get a refund for a money order?

Generally, yes, if the money order has not been cashed and you have the proper documentation (receipt and stub), you can request a refund or replacement from the issuer.

Is a money order traceable?

Yes, money orders are traceable. They have serial numbers, and the issuer can track them. This is one of the advantages over sending cash.

What should I do if I receive a money order with an error?

If the payee name is incorrect, contact the issuer for their specific process to correct it. This might involve a fee or requiring the payee to endorse it.

Are money orders safe to send through the mail?

Yes, money orders are considered safer than sending cash through the mail because they are traceable and can be replaced if lost or stolen, unlike cash.

Can I cash a money order at any bank?

While you can often cash money orders at banks other than the issuing institution, they may charge a fee, and it’s not always guaranteed. It’s often easiest to cash them at the place where they were purchased or at your own bank.

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

• Specific details on money order fraud and how to report it.
• International money transfers or money orders.
• The process for cashing a money order you’ve received.
• Advanced financial planning strategies that may make money orders unnecessary.
• How to use money orders for specific transactions like paying rent or utility bills.