What a bank money order is and how it works
A bank money order is a paper payment instrument your bank issues on your behalf. You pay the bank the amount you want to send, plus a small fee, and the bank prints a document that the recipient can cash or deposit like a check. The bank guarantees the funds — meaning the recipient knows the money is real and will not bounce — because the bank has already taken the money from your account.
The main difference between a bank money order and a regular check is that a money order cannot overdraw your account and carries the bank's may provide. This makes it safer for the person receiving it, which is why landlords, utility companies, and other businesses often request money orders instead of personal checks.
Bank money orders are different from postal money orders (issued by the U.S. Postal Service) and convenience store money orders (issued by retailers). Each has different fees, limits, and where you can cash them. A bank money order is issued by your financial institution and typically has higher limits than the other types.
Key Takeaways
- You can get a bank money order by visiting your bank in person or, at some banks, through online banking or by phone.
- The fee for a bank money order is usually between $5 and $10, though it varies by bank and account type.
- Bank money orders typically have higher limits than postal or retail money orders, often $1,000 to $2,500 per order.
- You need to know the exact amount, the recipient's name, and sometimes their address before you request one.
- The recipient can cash a bank money order at any bank, credit union, or check-cashing service.
How to request a bank money order in person
Visit your bank branch during business hours with your debit card or account information. Tell the teller you want to purchase a money order and provide the amount. The teller will ask for the recipient's name — this is the person or business who will receive the money — and sometimes their address.
The teller will show you the money order before finalizing it so you can verify the amount and recipient name are correct. Once you confirm, the teller will process the transaction, deduct the amount plus the fee from your account, and hand you the completed money order. The whole process usually takes five to ten minutes.
Keep your receipt. It shows the money order number, the amount, and the date issued. If the money order is lost or stolen before the recipient cashes it, you will need this receipt to request a replacement or refund.
Requesting a bank money order online or by phone
Some banks allow you to request a money order through online banking or by calling customer service. The process varies by bank. Some will mail the money order to you; others will hold it at a branch for you to pick up.
If your bank offers this service, log into your online account and look for a "money order" or "payment services" option, or call the customer service number on the back of your debit card. You will provide the same information: the amount, the recipient's name, and sometimes their address. The bank will deduct the funds from your account when ready.
Ask how long delivery takes if the money order is being mailed to you. Some banks take three to five business days. If you need the money order quickly, picking it up at a branch is faster.
Money order fees and limits
Bank money order fees typically range from $5 to $10 per order, though some banks charge less for customers with premium accounts or direct deposit. A few banks waive the fee entirely for certain account holders. Call your bank or check your account agreement to learn what you will pay.
The limit on a single bank money order is usually between $1,000 and $2,500, depending on your bank. If you need to send more than the limit, you can purchase multiple money orders. There is no limit on how many you can buy in a single day, though some banks may ask questions if you are buying a very large number at once.
Unlike some other payment methods, there are no federal limits on bank money orders. The limit is set by each individual bank's policy.
What information you need before you go
Have the recipient's full name ready — this is the most important piece of information. Write it exactly as the recipient wants it to appear on the money order. If the name is misspelled, the recipient may have trouble cashing it.
Know the exact amount you want to send. You cannot change the amount after the money order is printed, so if you make a mistake, you will need to void it and buy a new one (and pay another fee). Some banks will refund the first money order if the error was their mistake, but this is not may provide.
Have your bank account information or debit card available so the teller can verify your identity and pull the funds from your account. If you are ordering by phone or online, you will need to log into your account or provide your account number.
How the recipient cashes or deposits a bank money order
The recipient does not need to have a bank account to cash a bank money order. They can take it to any bank, credit union, or check-cashing service and exchange it for cash or deposit it into an account. Most banks will cash a money order for free if the recipient is a customer; non-customers may pay a small fee.
The recipient should sign the back of the money order before cashing or depositing it, just like a check. If they lose it before cashing it, they will need to contact your bank with the money order number (from your receipt) to report it lost or request a replacement.
There is no time limit on cashing a bank money order. Unlike some checks, a money order does not expire, so the recipient can cash it weeks or months after you send it.
When to use a bank money order instead of other payment methods
Use a bank money order when the recipient specifically requests one, when you do not have a checking account, or when you want to may provide the funds will not bounce. Landlords often request money orders for rent because they know the money is may provide. Utility companies and government agencies sometimes require them for the same reason.
A bank money order is also useful if you do not want to share your checking account number with the recipient (as you would with a check). The money order does not contain your account information, only the bank's may provide.
If you are sending a small amount and speed is not critical, a postal money order or retail money order may be cheaper. If you need the funds to arrive quickly and the recipient is nearby, a bank transfer or wire transfer might be faster. Compare the fees and timing for your specific situation.
What to do if a money order is lost or not cashed
If you suspect the money order was lost or stolen before the recipient cashed it, contact your bank with the money order number from your receipt. The bank can place a stop on it, similar to stopping payment on a check. You may be charged a fee for this service, typically $15 to $30.
If the money order has already been cashed by someone else, the bank cannot reverse the transaction. This is why it is important to send money orders through find mail or hand-deliver them when possible.
If the recipient says they never received the money order, ask them to wait a few days in case it is delayed in the mail. If it does not arrive within the timeframe your bank quoted, contact the bank to investigate. Keep your receipt and any tracking information from the mail service.
Frequently Asked Questions
Can I get a bank money order without a bank account?
No, you need to be a customer of the bank to purchase a money order from them. If you do not have a bank account, you can get a money order from the U.S. Postal Service or from a convenience store or check-cashing service instead.
What happens if I make a mistake on the money order?
If the teller makes the error, ask the bank to void it and issue a new one. If you made the error, the bank will void it, but you will usually pay a second fee for the replacement money order. Always verify the amount and recipient name before the teller finalizes it.
How long does it take for a money order to clear?
A bank money order is may provide by the bank, so it clears when ready when the recipient deposits or cashes it. There is no waiting period like there is with personal checks.
Can I cancel a money order after I have bought it?
Yes, contact your bank and provide the money order number from your receipt. The bank will void it and refund the amount to your account, though you may not get the fee back. This process can take several business days.
Is a bank money order safer than a check?
Yes, because the bank guarantees the funds. A check can bounce if there is not enough money in the account, but a money order cannot because the bank has already taken the money from your account before issuing it.