Where and How to Purchase a Money Order

Quick answer

• Money orders are a safe way to send money, especially when a personal check isn’t accepted or desired.
• You can buy them at post offices, major retail stores, grocery stores, and some convenience stores and check-cashing services.
• You’ll need cash or a debit card to purchase one; credit cards are typically not accepted.
• Know the recipient’s name and address, and the exact amount you need to send.
• Keep your receipt and the money order itself in a safe place until it’s cashed.
• Fees are usually modest, often a few dollars or less, but vary by issuer.

Who this is for

• Individuals who need to send money without using a personal check.
• People who want a secure, traceable alternative to cash for payments.
• Those who may not have a bank account or prefer not to use one for certain transactions.

What to check first (before you act)

Goal and timeline

Before you buy a money order, clarify why you need it and when the payment is due. Is it for rent, a bill, or a specific purchase? Knowing the deadline will help you determine if a money order is the fastest and most appropriate payment method.

Current cash flow

Ensure you have the funds readily available to cover the money order’s face value plus the purchase fee. Money orders are typically paid for with cash or a debit card, so confirm you have the necessary liquid assets.

Emergency fund or safety buffer

While not directly related to purchasing a money order, having an emergency fund is crucial for overall financial health. If unexpected expenses arise, you won’t need to dip into funds set aside for essential payments.

Debt and interest rates

If you’re considering using a money order to pay off debt, compare the cost of the money order and any associated fees against the interest you’ll save by paying the debt down. For most small, one-time payments, this is less of a concern.

Credit impact

Purchasing a money order does not directly impact your credit score, as it’s a cash-equivalent transaction. However, if you’re using it to pay a bill that would otherwise go to collections, it can indirectly prevent negative credit reporting.

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

1. Determine the exact amount needed.

• What to do: Calculate the precise sum you owe, including any potential fees the recipient might charge for late payments or specific payment methods.
• What “good” looks like: You have a clear, final number for the payment.
• Common mistake: Underestimating the total amount needed, leading to an insufficient payment. Avoid this by confirming the exact amount with the payee.

2. Identify a place to purchase.

• What to do: Locate a vendor that sells money orders. Common options include the U.S. Postal Service, major grocery stores (like Kroger, Walmart, Safeway), convenience stores, drug stores, and check-cashing services.
• What “good” looks like: You know a reliable place nearby where you can get a money order.
• Common mistake: Going to a store that doesn’t actually sell money orders. Avoid this by checking the store’s website or calling ahead.

3. Gather necessary identification (if required).

• What to do: Some vendors may ask for a valid government-issued photo ID, especially for larger amounts.
• What “good” looks like: You have your ID ready if needed.
• Common mistake: Not having ID when it’s required, delaying your purchase. Always bring a driver’s license or state ID.

4. Go to the chosen vendor.

• What to do: Visit the store or post office during their operating hours.
• What “good” looks like: You arrive at the vendor with enough time to complete the transaction.
• Common mistake: Arriving just before closing time. Avoid this by planning your trip during less busy hours if possible.

5. Request a money order.

• What to do: Approach the customer service desk or designated counter and ask to purchase a money order for the specific amount.
• What “good” looks like: The clerk understands your request and is ready to assist.
• Common mistake: Not clearly stating the amount. Be precise with the dollar and cent amount.

6. Pay for the money order.

• What to do: You will pay the face value of the money order plus a small purchase fee. Most vendors accept cash or debit cards.
• What “good” looks like: You have the correct payment method and amount ready.
• Common mistake: Assuming credit cards are accepted. Most places do not allow credit card purchases for money orders.

7. Fill out the payee’s information.

• What to do: Carefully write the full name of the person or company you are sending the money to in the designated “Pay to the Order of” section.
• What “good” looks like: The payee’s name is spelled correctly and clearly written.
• Common mistake: Misspelling the payee’s name. This can prevent them from cashing it. Double-check the spelling.

8. Fill out your information (sender’s address).

• What to do: Write your own name and address in the sender’s section. This is important for tracking and if the money order needs to be reissued.
• What “good” looks like: Your address is complete and accurate.
• Common mistake: Leaving this section blank. This makes it harder to resolve issues if the money order is lost or stolen.

9. Sign the money order.

• What to do: Sign your name in the designated spot. This validates the money order.
• What “good” looks like: Your signature is present and matches any other documentation you might have.
• Common mistake: Forgetting to sign it. An unsigned money order cannot be cashed.

10. Sign the receipt.

• What to do: Sign the receipt provided by the vendor.
• What “good” looks like: You have a signed receipt confirming your purchase.
• Common mistake: Not getting or signing the receipt. This is your proof of purchase.

11. Safeguard the receipt and money order.

• What to do: Keep the receipt in a secure place. If you are mailing the money order, keep a photocopy of it for your records.
• What “good” looks like: Both the receipt and the money order are stored safely until the transaction is complete.
• Common mistake: Losing the receipt or the money order. This can lead to significant hassle if you need to track it or get a refund.

12. Deliver the money order.

• What to do: Mail the money order to the payee or deliver it in person.
• What “good” looks like: The money order reaches the intended recipient.
• Common mistake: Not tracking certified mail if you use it. If the payment is critical, consider using a tracked mailing service.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not checking the payee’s name spelling	The recipient cannot cash the money order.	Double-check the spelling with the payee before writing it on the money order.
Forgetting to sign the money order	The money order is invalid and cannot be cashed by the recipient.	Always sign the money order in the designated spot before giving it to the payee.
Losing the money order	You lose the funds, and it can be difficult and time-consuming to track or get a refund.	Keep the money order in a safe place. If mailing, consider making a photocopy first.
Losing the receipt	You have no proof of purchase, making it nearly impossible to trace or request a refund if the money order is lost or stolen.	Always sign and keep your receipt in a secure location until you confirm the money order has been cashed.
Paying with a credit card	The transaction will likely be declined, or you may be charged a cash advance fee by your credit card company.	Use cash or a debit card to purchase money orders. Check with the vendor beforehand if you are unsure about accepted payment methods.
Not knowing the exact amount	You may pay too much or too little, leading to complications with the payee.	Confirm the exact amount required with the person or company you are paying before going to purchase the money order.
Not filling out the sender’s address	If the money order is lost or has an issue, it’s harder for the issuer to contact you or reissue the funds.	Always complete the sender’s address section on the money order for traceability and in case of any problems.
Buying from an unofficial source	Risk of counterfeit money orders or scams, leading to loss of funds.	Only purchase money orders from reputable and authorized vendors like post offices, major retailers, or established financial institutions.
Not understanding the purchase limits	You may be unable to purchase a money order for the amount you need in a single transaction.	Be aware that most money orders have a maximum limit per instrument (e.g., $1,000). For larger amounts, you may need to purchase multiple money orders. Check with the vendor for specific limits.
Not informing the payee of the money order details	The payee might not recognize the money order or know to expect it, delaying their ability to cash it.	If possible, let the recipient know you are sending a money order, the amount, and roughly when they should expect it.

Decision rules (simple if/then)

• If you need to send money to someone who doesn’t accept personal checks, then use a money order because it’s a secure, pre-paid instrument.
• If the payment amount is over $1,000, then you will likely need to purchase multiple money orders because most issuers have a per-instrument limit.
• If you are paying a landlord or utility company, then check if they have specific instructions for money order payments because some may have preferences or limits.
• If you are buying a money order for a large amount, then bring a valid government-issued photo ID because the vendor might require it for verification.
• If you are unsure about a vendor’s legitimacy, then do not purchase a money order there because it could be a scam.
• If you lose your money order, then immediately contact the issuer with your receipt because they may be able to track it or issue a refund.
• If you need the payment to arrive by a specific date, then factor in mailing time and purchase the money order a few days in advance because money orders themselves are not instant delivery.
• If you prefer to avoid writing checks, then a money order is a good alternative for sending payments securely.
• If you want a record of your payment, then keep a photocopy of the money order (especially if sending it via mail) because it serves as proof of purchase and details.
• If you need to send money internationally, then a money order may not be the best option because international money transfer services are typically more suitable.
• If you are purchasing a money order, then be prepared to pay with cash or a debit card because credit cards are rarely accepted.
• If you need to track the delivery of your money order, then consider using certified mail with a return receipt when you send it to the payee.

FAQ

What is a money order?

A money order is a prepaid certificate that guarantees payment to a specific person or entity. It functions like a check but is purchased with cash or a debit card, ensuring the funds are available.

Where can I buy a money order?

You can purchase money orders at U.S. Post Office locations, major retail stores (like Walmart, Target, Kroger), grocery stores, drug stores, convenience stores, and some check-cashing services.

How much does a money order cost?

The cost, or fee, for a money order is typically modest, often ranging from less than a dollar to a few dollars. The exact fee varies by the issuer and the amount of the money order.

Can I buy a money order with a credit card?

Generally, no. Most places that sell money orders do not accept credit cards for their purchase. You will typically need to use cash or a debit card.

What information do I need to buy a money order?

You need to know the exact amount you want the money order to be for. You will also need the payee’s full name and address to fill out the money order, and your own address as the purchaser.

What happens if I lose a money order?

If you lose a money order, you should contact the place where you purchased it immediately, providing your receipt. The issuer may be able to track it, stop payment, or issue a refund after a waiting period.

Can I get a refund for an unused money order?

In most cases, yes, if the money order has not been cashed. You will need your original receipt and may have to fill out a claim form. There might be a fee for this service.

Are money orders safe?

Yes, money orders are considered a safe way to send money, especially for those who don’t have a bank account or prefer not to use checks. They are traceable and guaranteed by the issuer.

What is the maximum amount for a single money order?

The maximum amount for a single money order varies by issuer, but it is often around $1,000. For larger payments, you will need to purchase multiple money orders.

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

• International money orders or wire transfers.
• Opening a bank account or setting up direct deposit.
• Detailed information on specific money order issuers or their fee structures.
• How to cash a money order if you are the payee.
• Alternatives to money orders like peer-to-peer payment apps or cashier’s checks.