Money orders are official documents representing a specific monetary value, similarly to written checks. However, money orders are different from other forms of payment in a few different ways, which you can read about below. What's important to know up front is that money orders are prepaid, so you must be able to pay for the full amount you want to include in your money order when you go to purchase it. For example, if you want to send a $100 money order to a family member, you need to be able to pay $100 up front in order to create the money order. Money orders aren't a form of credit and don't require a credit score, and you don't even need a bank account to pay for one. This makes money orders an accessible form of payment for people in a wide variety of financial situations. Show
In addition to paying up front, you'll need to list a payee. The payee is the person or organization where you want to send the money. Once the money order is created, you can mail or physically hand it to the payee. The money order must bear the signature of the payer (you, if you're the one sending it) and the payee in order to be valid. You'll want to hang on to any documentation relating to the money order, such as a pay stub and/or receipt, until you're sure the payee has signed and cashed the money order. When should I use a money order?Money orders are great to use in situations where other forms of payment are either unavailable or unsafe. The nature of a money order essentially makes it as good as cash, which might make it reassuring if you're skeptical of whether someone who's paying you with a money order is able to settle a debt. You can use money orders to pay off personal debts to other individuals, pay bills to companies, or send gifts. There are no formal legal restrictions on what you can use money orders for in the US. However, money orders may not be valid internationally. If your payee is located outside of the US, make sure to check on whether they'll be able to cash it in their country. Find this out up front before you purchase. You may be able to cash your own money order if you can't actually use it for its intended purpose, but you may not want to take this risk or deal with the hassle. Why should I use a money order instead of another form of payment?There are some distinct advantages to using money orders, but there are also some drawbacks. Consider these other forms of payment as options in addition to money orders before purchasing. Though money orders protect against some types of fraud, they aren't fraud proof. Money order scams are relatively common, so consider your payment method carefully, particularly if you don't know the payee. A lost money order can be a financial headache. Learn what to do if your money order is lost or stolen.
By Rebecca Lake Our articles, research studies, tools, and reviews maintain strict editorial integrity; however, we may be compensated when you click on or are approved for offers from our partners.  Money orders can be a convenient way to pay bills or make payments to individuals. For example, if you plan to buy a car, you could pay the seller using a money order. Or if someone owes money to you, they might use a money order to pay. A lost or stolen money order, however, can be a source of financial stress if you’re worried about how to get the money back. While a lost money order may be an inconvenience, there are some things you can do to try to recover your cash. Here’s more on how to track a money order and what your options are when one is lost or stolen. Compare checking account offers What Is a Money Order?IN THIS ARTICLE
A money order is an alternative form of payment you can use in place of checks or cash. You can purchase money orders at a variety of places, including the postal service, Walmart and money order issuers such as Western Union. It’s also possible to get a money order at your bank or credit union. The maximum dollar amounts allowed for money orders and the fees you pay to purchase them can vary based on where you buy them. Can You Cancel a Money Order?The short answer is yes, you can cancel a lost money order. The issuer should have a cancellation process that outlines what steps you need to take to recover your cash when a money order goes missing. But there’s a catch. Typically, you can only cancel a money order if it hasn’t been cashed yet. This is similar to how a stop payment works with a checking account. If the money order has been cashed already, then it could be more difficult to get your money back or get a replacement money order. The only way you might be able to get your money back then is if you can prove that someone cashed the money order fraudulently. You need to try and get a copy of the cashed money order and report it to law enforcement. If the money order was stolen and the authorities are able to track the person down, that might give you a better shot at getting the cash back. >>Why Do I Need to Open a Checking Account? How to Cancel a Money OrderIf you need to cancel a money order because it’s lost or stolen, there are certain steps to follow. The cancellation process can vary based on where it was purchased. But generally speaking, here’s what you need to do: 1. Contact the issuer of the money orderThe first thing to do if you’re sure that your money order is lost is to contact the issuer. The issuer will be able to tell you how to cancel a money order and what to do next. Again, this can vary based on where the money order was issued. For example, if you purchased a USPS money order, you’d need to visit your nearest post office location to request a cancellation. If you purchased a MoneyGram money order at Walmart, you can’t place a Walmart cancel order directly. Instead, you have to request a cancellation or replacement money order through MoneyGram. If you need to cancel a Western Union money order, the way you can do it depends on how the money was sent. You can cancel your money order:
When you contact the issuer, explain that you need to cancel a money order and why. It helps to give as much detail as possible explaining how the money order was lost or stolen. 2. Fill out the cancellation request formUnless you have the option to cancel a lost or stolen money order over the phone, you typically need to complete a cancellation request form with the money order issuer. Depending on the issuer of the money order, you may need your original receipt to submit a cancellation request. The cancellation request form will ask you for specific details, including:
All of this should be included on your receipt. If you don’t have the original receipt, you can still submit a cancellation request form using the information you can remember. The money order issuer may also ask for the name of the person or business that you intended to send the money order to. 3. Pay the money order cancellation feeIf you need to cancel a money order, the issuer of the money order may charge a cancellation fee to do so. This fee can vary based on from where you purchased the money order. Here’s a quick breakdown of what you can expect to pay for money order cancellation fees at some of the top money order issuers:
Different fees may apply if you purchased a money order at your bank or credit union. If you want to get a money order refund from your bank, first contact customer service to find out whether that is possible. Then, ask what you might pay for a cancellation fee and how to submit a cancellation request form. 4. Allow your cancellation request time to processIf you have to cancel a money order, you may not be able to get the money back right away. A money order refund could take several days or even several weeks to process. Western Union, for example, can take up to 30 days to give you your money back if you canceled a money order and had your original receipt. Without your receipt, on the other hand, processing could take up to six to eight weeks. Once your request is approved, you can receive a replacement money order. Depending on the issuer, you may receive an online money order or be mailed a paper one. Or you could ask for a money order refund if you just want the cash back. There may be a separate fee you have to pay to get a lost or stolen money order refunded. The processing times may be about the same, depending on the issuer’s refund policies. >>The Cost of Sloppy Banking Habits How to Track a Money OrderIf you’re worried about a money order that you’ve sent to someone being lost or stolen, or you’re due to receive a money order, you should be able to track it through the issuer.
The options for tracking money orders purchased elsewhere can depend on where they were purchased. Money Order FAQsCan you buy a money order with a credit card? Yes, you can use a credit card to purchase a money order at certain issuers. Walmart and the post office, for example, do not allow you to purchase money orders with a credit card – but Western Union does. Does CVS do money orders? Yes, they do. Like Walmart, CVS offers money orders through MoneyGram. This means if a money order purchased from CVS is lost or stolen, you’d need to contact MoneyGram to cancel it or have it replaced. Is sending or getting paid by money order safe? Money orders can be a safe and secure way to send money. For example, if someone is sending you a money order instead of a check, you don’t have to worry about its bouncing because it’s already been funded. But if you’re sending or receiving a money order, it’s important to make sure you’re tracking it to minimize the risk of its being lost or stolen. What other options are there for sending money? If you’re worried about a money order being lost or stolen, there are other ways to send money. Opening a checking account, for example, can make it easier to write checks, schedule ACH payments or make person-to-person payments online. When comparing checking accounts, be sure to research the fees, features and benefits, as well as the other products and services a bank or credit union offers. This can help you find the right checking account for your needs and budget. About Author Rebecca Lake Rebecca Lake joins MoneyRates as a contributor writing about banking, credit and debt, home-buying, investing, small business, and other personal finance topics. Rebecca brings her expertise as a personal-finance journalist to MoneyRates.com, having written about money for over five years. Her work has appeared online at U.S. News and World Report and many other publications. Can you get your money back on a money order?If you have your original money order or your purchaser's receipt and your money order has not been cashed, you'll need to do the following for a refund: Open the Money Order Refund Request form. Enter the details and attach your receipt. Accept the terms and conditions and select Submit.
Can you void a money order and get your money back?When you submit your cancellation form, you can either request a replacement money order or a refund of the purchase price. The replacement process can take up to 60 days, so if you're using the money order to make an urgent payment, you should probably consider sending another.
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Can i get a money order refund
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