A money order works like prepaid cash on paper: you pay the full face value plus a small fee upfront at a post office, bank, credit union, or retail store, write in the name of the person or business you’re paying, and hand or mail them the completed slip. Because the funds are already collected by the issuer, the payee can cash or deposit it without the risk of a bounced check, and you get a receipt stub that ties you to the payment.
Money orders are useful when you don’t have a checking account, when the payee won’t accept a personal check, or when you need to send money by mail and don’t want to put cash in the envelope. Landlords, utilities, and other billers often accept them for exactly that reason.
Where to Buy One
You can buy a money order at U.S. post offices, banks, credit unions, and many grocery stores, pharmacies, and convenience stores. Retail locations usually sell them through a MoneyGram or Western Union agent operating inside the store. The provider you choose affects both the fee and the maximum face value, so it’s worth comparing a couple of nearby options before you go.
Payment is in cash, by debit card, or with a traveler’s check. Most sellers won’t take a credit card, and the ones that do typically trigger a cash-advance charge from your card issuer, with a higher interest rate and an immediate fee.
Bring a government-issued photo ID such as a driver’s license or passport. Sellers use it to verify your identity at the counter. If you buy $3,000 or more in money orders with cash in a single day, federal law requires the seller to record your ID details and keep them on file.1Office of the Law Revision Counsel. 31 USC 5325 – Identification Required to Purchase Certain Monetary Instruments
Filling One Out
Have the payee’s full legal name ready before you buy. That name goes on the “Pay to” or “Pay to the Order of” line, and you should fill it in right away. A blank payee line is a problem: anyone who finds the money order could potentially cash it.
Most money orders have a memo or “Payment for” line where you can add an account number, invoice number, or a short note about what the payment covers. On the purchaser line, write your own name and address. That creates a record linking you to the payment.
Once the form is complete, tear off the attached receipt stub and keep it somewhere safe. The stub carries the serial number, the post office number for USPS orders, and the dollar amount. You’ll need those details to track the payment, request a refund, or prove later that you paid.
Fees and Dollar Limits
A single USPS domestic money order can cover up to $1,000.2USPS. Money Orders If you need to send more than that, you have to buy multiple money orders. International USPS money orders cap at $700, or $500 for payments to El Salvador and Guyana.3USPS. Money Orders – The Basics Western Union and MoneyGram money orders sold at retail also cap at $1,000 in most stores, though the exact limit can vary by seller.
USPS fees as of January 2026:
- $0.01 to $500.00: $2.55
- $500.01 to $1,000.00: $3.60
- Military postal money orders: $0.84
Those rates come from the Postal Service’s published price list.4USPS. Notice 123 – Price List At retail locations selling Western Union or MoneyGram, fees generally run from about $1 to $5 depending on the store and the amount.
Getting It to the Payee
You can hand the completed money order directly to the person or business you’re paying, or drop it in the mail. For mailed payments, especially larger ones, a tracked or registered mail service is worth the extra cost. A regular first-class envelope works too, but if it disappears, you lose any way to prove delivery. Once the money order leaves your hands, that receipt stub is your only proof of payment.
Cashing or Depositing One You Received
If someone paid you with a money order, you have a few ways to convert it to spendable funds. You can deposit it into your bank account like a check: endorse the back by signing your name, then bring it to a teller or use mobile deposit if your bank supports it. Most banks will also cash a money order at the counter if you have an account there.
Without a bank account, you can cash a USPS domestic money order at any post office, subject to available funds at that branch. Sign it in front of the postal clerk and show an acceptable photo ID.3USPS. Money Orders – The Basics Check-cashing stores will cash money orders as well, but they typically charge a percentage of the face value. Wherever you go, don’t sign the back until you’re at the counter ready to complete the transaction.
Tracking, Replacing, or Canceling a Money Order
To check whether a USPS money order has been cashed, you need the serial number, post office number, and dollar amount from your receipt stub. Enter them into the USPS Money Orders tracking tool online to see the current status.5USPS. Money Orders – Check Money Order Status If it has been cashed and you want a copy showing the endorsement on the back, you can file an inquiry. USPS charges $21.00, which includes the copy.4USPS. Notice 123 – Price List
If a USPS money order is lost, stolen, or damaged before it’s cashed, you can request a replacement or refund. Bring the original receipt stub to any post office and fill out PS Form 6401 (Money Order Inquiry). The $21.00 processing fee applies per inquiry.2USPS. Money Orders The investigation takes time. USPS may need up to 30 days to confirm whether the money order was lost or stolen, and the full investigation can run up to 60 days. A replacement won’t be issued until at least 60 days after the original purchase date, and only if the money order hasn’t already been cashed.3USPS. Money Orders – The Basics If someone cashed it before your stop-payment request was processed, you generally can’t get a refund.
If you lost the receipt stub, you can still file PS Form 6401 with whatever information you have. The investigation just takes longer because the postal service has less to work with.3USPS. Money Orders – The Basics If you just need to fix a mistake like the wrong payee name and you still have the uncashed money order, bring both the money order and the receipt to a post office and a clerk can help you file for a replacement.
For Western Union or MoneyGram money orders, check the issuer’s website or call their customer service line. The process and fees are different from USPS.
Spotting Fake Money Orders and Scams
Counterfeit money orders show up often in online scams. If someone sends you a money order and asks you to deposit it and wire part of the funds back, treat it as a scam. The money order will eventually bounce, and you’ll be on the hook for the full amount.
Genuine USPS money orders carry security features you can check by holding the paper up to a light:
- A watermark of a Pony Express rider on the left side, and the words “United States Postal Service” in a rectangular box on the right. Watermarks that are easily visible without a light source are a warning sign.
- An embedded security thread running top to bottom that shows “USPS” alternating right-side up and upside down.
These features apply to USPS money orders issued from 2025 onward. Older versions used different designs.6Postal Inspection Service. How to Spot a Fake
Other red flags:
- The face value is over $1,000. Domestic USPS money orders can’t be issued for more than that, so any postal money order above the cap is fake.2USPS. Money Orders
- You’re asked to send back the difference. In the classic overpayment scam, the money order arrives for more than you’re owed and the sender asks you to wire the excess to a third party. Your bank may accept the deposit at first, but once the fraud is caught, the bank reverses the transaction and holds you responsible.
- The paper feels like ordinary printer stock, or the text looks blurry. Real money orders are printed on distinct security paper.
If you think you’ve received a counterfeit postal money order, don’t try to cash it. You can report suspected postal money order fraud to the U.S. Postal Inspection Service online or by calling 1-800-372-8347.7USPS. Mail Fraud