Money orders last forever and don’t expire, but some issuers may charge service fees if they remain uncashed for an extended period. Whether you received a money order as payment or purchased one instead of using personal checks, it’s a good idea to cash or deposit it as soon as possible to avoid any complications.
Key Takeaways
- How long does a money order last? Money orders generally don’t have expiration dates; however, certain issuers may impose non-refundable service charges on money orders that remain uncashed for extended periods, typically ranging from one to three years.
- The United States Postal Service (USPS) issues money orders that neither expire nor accrue fees over time, ensuring their full value remains intact regardless of when they are cashed.
- To avoid potential fees or complications, it’s advisable to cash or deposit money orders promptly and review the specific terms and conditions provided by the issuing institution.
Many people turn to money orders when they don’t have a bank account, prefer not to share banking information, or need a secure alternative to cash. You might have received a money order months ago and just found it tucked away in a drawer, or perhaps you’re wondering whether it can still be deposited into your savings account at a bank or credit union. If so, you’re not alone.
Learn how money orders work, whether they lose value over time, and what steps you can take if you have an old money order that hasn’t been cashed yet.
What Is a Money Order?
A money order is a secured paper check that requires money up front. Many individuals and organizations request money orders because they don’t bounce and are secure. In a 2022 report from the Board of Governors of the Federal Reserve System, 13% of adults used non-bank check cashing or money orders.1 To buy a money order, you need to use a guaranteed form of payment, such as cash or a debit card.
Suppose you intend to send someone a $200 money order. In that case, you will need to provide that exact amount of money in addition to the service fee. You can obtain a money order at the post office, bank, and certain retail stores. You may also get a money order at check-cashing stores or payday loan stores.
You will receive a money order receipt once you pay. The money order receipt allows you to track the money and recover funds if you lose the money order or if someone steals it. A money order is better than a bank check because it provides more security. A bank check has your account number, but a money order has no personal bank information.
Many people confuse a money order with a cashier’s check. These two payment options are similar, but a cashier’s check requires an active checking account. A money order is better than a cashier’s check simply because a bank account is not necessary to send money.
How Long is a Money Order Good For?
You may worry about a potential expiration date if you received a money order and forgot to cash it. Do money orders expire? The good news is that money orders retain their face value indefinitely.
If you do not cash an old money order within a few years of the purchase date, you may have to pay a fee in certain states. For example, Western Union will deduct a non-refundable service charge from the principal amount of the money order.
Where Can I Get A Money Order?
You can get a money order at a bank, credit union, post office, or some retailers. Here are the steps you can take to send a money order:
- Decide on the money order amount and who you’ll send it to. Be prepared to pay with cash or a debit card.
- Fill out the money order. You will typically do this at the counter with a retail associate by filling out your name, the payee’s name, and then signing the bottom.
- Keep your receipt. The receipt is a copy of the money order. You can use it to track the money order to ensure the recipient receives it, or to contact the location where you got it from if there are any issues.
- The recipient receives the money order. Once they receive it, they must sign the back to cash or deposit it. Additionally, they usually need their government-issued photo ID and cash to pay for any fees that may be charged, depending on the location.
How Much Are Service Fees for a Postal Money Order?
There will be a non-refundable service charge for sending a money order. However, the cost of service fees varies per location. You may get a service fee as low as $1 and as high as $5. The United States Postal Service charges $1.45 for money orders less than $500 and $1.95 for money orders between $500.01 and $1,000. If you buy a postal military money order from a military facility, you will have to pay a small fee of $0.50.
Is There a Limit on United States Postal Service Money Orders?
There are purchase limits for USPS money orders. A domestic money order within the United States has a maximum of $1,000. The purchase maximum for international postal money orders varies by country, but the amount cannot exceed $700.
Want to buy more than one USPS money order? There is no daily limit on money order purchases, so you can buy multiple. But you must fill out a special form and provide a valid government-issued photo ID if you purchase more than $3,000 in money orders. You can provide a driver’s license, state identification card, or military ID as proof of identity.
Can I Replace a Postal Money Order?
If a money order from the post office becomes damaged, can you get a replacement? Yes! The United States Postal Service issues replacement postal money orders for the following reasons:
| Situation | Description |
| A money order becomes damaged | When a money order is physically harmed, making it difficult to read or process. |
| A money order is defective | When a money order has an issue with its printing or encoding, which affects its usability. |
| A money order is spoiled during imprinting or customer completion | When a money order is rendered unusable or spoiled due to errors during the imprinting process or customer completion, such as incorrect information or mistakes made by the customer. |
Suppose you bought a money order for a friend who needed some financial assistance. Can you submit a refund request if that friend has already acquired the money after you bought the money order? You can get your money back by replacing the spoiled money order.
To replace a money order, you must provide the original postal money order and the original purchase receipt. You will also have to fill out the PS Form 6401, referred to as the money order inquiry document. There is no fee for a replacement.
What if A Money Order is Lost or Stolen?
If you have lost a postal money order or had it stolen, rest easy knowing that the post office can replace it! The post office charges a $6.95 processing fee for stolen or lost money orders. Speak to a retail associate at any post office location about a money order inquiry. You can then check the status of your inquiry online by visiting the application webpage.
The post office will issue a replacement once the money order is confirmed to be stolen or lost. It takes about 30 days for a money order loss or theft to be confirmed. However, investigating a lost or stolen money order can take as long as 60 days.
Are There Any Downsides of Money Orders?
Money orders are useful financial tools, but there are some cons to consider before buying or sending one.
Inconvenience
To pay with a money order, the purchaser must buy it in person and mail it or physically hand it to the recipient. There are also purchase limits for money orders, so you may not be able to obtain or send as much money as you need.
If you need to borrow funds from someone through a loan, applying for a private loan on your own may be more convenient than requesting a money order. You can inquire about online quick cash loans and get money in as little as one business day without leaving home!
Some Places Charge Fees
Paying a small fee to send a money order may not be a big deal, but the cost can quickly add up if you constantly pay with money orders. Having a checking account can be more affordable than money orders. If you do not have a bank account, you can quickly sign up for free to take advantage of various payment methods. There are plenty of checking account options without a monthly service charge.
Potential Scams
Scammers often use money orders. An advance-fee scam is a common fraud tactic to be wary of. A scam artist may promise a significant loan in exchange for a small upfront fee through a money order. If you receive a money order, look out for signs of tampering or misspellings. You should also be cautious of a money order if the sender is desperate for you to cash it.
FAQS About Money Orders
What’s the difference between domestic money orders and international money orders?
Domestic money orders are used for transactions within the same country, while international ones are designed for sending money overseas. The fees may vary, and there could be different maximum amount limits for international money orders compared to domestic ones.
How can I cash a money order?
To cash a money order, you typically need to go to a bank or a place that cashes personal checks and money orders, like grocery stores, check-cashing stores like Western Union, or convenience stores. Bring a valid photo ID with you. Some places may charge a fee.
Can I buy a money order with a debit card?
Yes, you can purchase a money order using a debit card at many locations, including banks, post offices, and retail stores. However, it’s advisable to check the accepted payment methods at the location where you intend to buy the money order.
What are the alternatives to cash orders when it comes to sending money?
Other options for sending money include bank transfers, electronic payments like PayPal or Venmo, cashier’s checks, personal check options, or wire transfers. Each of these methods has its own set of advantages and drawbacks, so the right one for you depends on your particular needs.
Do retail stores and the Post Office sell money orders?
Yes, many retail stores, as well as the Post Office, sell money orders, often at a customer service desk. Some of the retail stores can also cash money orders. It’s a good idea to call ahead to your local stores to see if they provide these services and what the associated fees are.
What is the processing time for a money order?
The time it takes to process a money order depends on the mailing method. It’s usually immediate if handed over in person, or 2 to 5 business days if sent by standard mail. Some retail stores offer instant delivery with a fee. Once deposited into your bank account, your funds become available in 1 to 3 business days.
Conclusion About Money Orders With CreditNinja
A money order is a valuable and secure financial tool for sending and receiving money. A bank account is not necessary to buy a money order, so just about anyone can get one. There are also no expiration dates for money orders. You can hold onto a money order for years and still claim the payment, although some states may charge a service fee.
To learn more about checks, banking, loans like unsecured loans vs. secured loans, and more, check out the CreditNinja Dojo.
References:
- Banking and Credit | Federal Reserve
- What Is a Money Order? How a Money Order Works and Where to Buy One | Nerd Wallet
- Money Orders – The Basics | USPS
- Sending Money Orders | USPS
