Where to Buy Money Orders and How They Work

What a money order is and where to get one

A money order is a piece of paper that works like a check, but the money is already paid for when you buy it. You walk into a store or bank, hand over cash (or sometimes a debit card), and they print a document with a specific amount on it. You then give that document to whoever you're paying — a landlord, a utility company, a person you owe money to — and they cash it or deposit it like a check.

You can buy money orders at most grocery stores, pharmacies, post offices, and banks. Walmart, Target, and convenience stores like 7-Eleven and Circle K sell them. Your own bank probably sells them too, even if you don't have an account there. Some check-cashing stores and payday loan shops sell them as well.

Money orders cost between $0.50 and $5 depending on where you buy them and how large the amount is. Post offices and banks are usually on the cheaper end. Grocery stores and convenience stores are usually in the middle. Check-cashing stores tend to be the most expensive.

Key Takeaways

• Money orders are sold at post offices, banks, grocery stores, pharmacies, and convenience stores, and you pay a small fee when you buy one.
• You can buy a money order with cash or a debit card, and the amount is limited — most places cap them at $500 to $1,000 per order.
• The person receiving the money order can cash it at a bank, check-cashing store, or sometimes at the place where it was issued.
• Money orders are safer than sending cash through the mail because they can be replaced if lost or stolen, but only if you kept your receipt.

How to buy a money order step by step

Walk into the store or bank where you want to buy the money order. Tell the cashier or teller you want to buy one. They will ask you how much money you want the order to be for — this is the amount the recipient will receive. They will also ask for the name of the person or business you're paying. Write this down or tell them clearly, because it has to be exact.

Hand over the cash (or your debit card). The cashier will print the money order and fill in the amount and the recipient's name. You will also see a receipt or stub — keep this. The receipt has a tracking number on it. If the money order gets lost or stolen, you will need this number to get your money back.

The cashier will hand you the money order itself. Check that the amount and the recipient's name are correct before you leave. Once you hand it to the recipient, you cannot change it.

Money order limits and what they mean for you

Most places will not sell you a single money order for more than $500 to $1,000. The exact limit depends on where you buy it. Post offices cap them at $1,000. Banks often cap them at $500 to $1,000. Grocery stores and convenience stores vary.

If you need to send more than the limit, you have to buy multiple money orders. If you need to send $2,500, you might buy five $500 orders. This costs more in fees — you pay the fee for each one — but it is the only way to do it with money orders. This is one reason some people use cashier's checks instead, which have higher limits and sometimes lower fees.

How the recipient cashes or deposits a money order

The person you send the money order to can take it to a bank and deposit it into their account, just like a check. They can also take it to a check-cashing store and get cash on the spot. Some places where you can buy money orders — like Walmart or the post office — will also cash them, though they may charge a small fee.

The recipient does not need to have a bank account. They can walk into almost any check-cashing store with the money order and walk out with cash. This is one reason money orders are popular for paying people who do not use banks.

The recipient will need to sign the back of the money order, just like a check. Some places ask for ID as well. The process usually takes a few minutes.

Money orders versus cashier's checks

Both money orders and cashier's checks are prepaid documents, but they work differently. A money order is smaller, costs less, and is easier to buy — you just walk into a store. A cashier's check is larger, costs more, but has higher limits and is considered more official. You have to go to a bank to get a cashier's check, and it usually takes at least a day.

Use a money order if you need to send a small amount (under $1,000) right away and do not want to go to a bank. Use a cashier's check if you need to send a larger amount, if the recipient specifically asks for one, or if you have time to wait a day.

Replacing a lost or stolen money order

If you lose a money order or it gets stolen before the recipient cashes it, you can get your money back — but only if you have the receipt. The receipt has the tracking number on it. Call or visit the place where you bought it and tell them the money order is lost. They will look it up using the tracking number and issue you a replacement or refund.

This process can take anywhere from a few days to a few weeks, depending on where you bought it. The post office usually takes longer than a bank or store. This is why keeping your receipt is critical. Without it, you have no proof you bought the money order, and the company will not replace it.

If the recipient has already cashed the money order, you cannot get your money back. The money order works like cash once it is cashed.

Sending a money order by mail safely

Money orders are safer to mail than cash because they can be replaced if lost. However, they are not completely risk-free. The recipient's name is printed on the money order, so someone who steals it from the mail cannot cash it without forging a signature — but some people will try.

If you are mailing a money order, keep your receipt and write down the tracking number. Tell the recipient you are sending it and give them a rough timeline for when it should arrive. If it does not arrive within a week or two, contact the place where you bought it with your receipt and tracking number.

Do not mail cash. Do not mail a blank money order. Do not mail a money order without keeping your receipt. These steps protect you if something goes wrong.

Frequently Asked Questions

Can I buy a money order with a credit card?

Most places do not accept credit cards for money orders. They accept cash and debit cards. Some banks may accept a check or a transfer from your account, but this is rare. Call ahead if you want to pay with a debit card, because some smaller stores only take cash.

What if I make a mistake on the money order?

Once the money order is printed and handed to you, you cannot change it. If you wrote down the wrong amount or the wrong recipient name, you have to go back to the store and buy a new one. Some places will refund the first one if you catch the mistake right away, but this is not may provide. Check everything before you leave the counter.

Do I need ID to buy a money order?

Most places do not ask for ID when you buy a money order. However, some banks and check-cashing stores do, especially if you are buying a large one. Call ahead or bring your ID to be safe. You will definitely need ID if you are cashing a money order that someone sent to you.

How long does it take for a money order to clear?

If the recipient deposits a money order into a bank account, it usually clears within one to three business days, just like a check. If they cash it at a check-cashing store or the place where it was issued, they get the cash right away. There is no waiting period for cashing.

Can I get a refund if I bought a money order and do not need it?

Yes, but only if you have not given it to the recipient yet. Take the money order and your receipt back to the place where you bought it and ask for a refund. They will charge you the fee you paid to buy it, so you will get back the amount minus the fee. Some places may not refund money orders, so ask first.