How to buy a money order in five steps

You buy a money order at a physical location — a bank, post office, grocery store, or check-cashing business — by paying the amount you want to send plus a small fee. You fill in who receives the money (the payee), who is sending it (you), and sign it. The seller gives you the money order and a receipt. You then mail it or hand it to the payee, who takes it to their bank or a check-cashing place to deposit or cash it.

The process takes about five minutes. You do not need a bank account. The fee ranges from about 70 cents to $2.50 depending on where you buy it and how much money you are sending — the Post Office charges less for smaller amounts, while check-cashing stores often charge more.

The payee cannot cash a money order that is not filled out correctly, so accuracy matters. Once you hand over the money order, you cannot get it back or change it, so double-check the payee's name and the amount before you leave the location where you bought it.

Key Takeaways

  • You can buy a money order at the Post Office, your bank, grocery stores, or check-cashing businesses by paying the amount plus a fee in cash or debit card.
  • You must write the payee's name, your name, and sign the money order before you leave the seller — you cannot change it later.
  • Fees vary by location and amount, ranging from under $1 at the Post Office for small amounts to $2 or more at check-cashing stores.
  • The payee deposits or cashes the money order at a bank or check-cashing business, just like a check.
  • Keep your receipt until the payee confirms they received and cashed the money order.

Where to buy a money order

The Post Office is usually the cheapest option. A money order up to $500 costs 70 cents, and one from $500.01 to $1,000 costs $1.45. You can buy one at any Post Office location during business hours.

Banks often sell money orders to customers for $5 to $10, though some waive the fee if you have an account with them. Call your bank first to ask the fee and whether you need an account.

Grocery stores and pharmacies (Walmart, Target, Kroger, CVS, Walgreens) sell money orders for $1 to $3, depending on the amount and location. Check-cashing businesses charge $2 to $5 or sometimes more. You do not need an account anywhere — just cash or a debit card.

What information you need to fill in

Payee name: Write the full name of the person or business that will cash the money order. If you write the name wrong or leave it blank, the payee cannot cash it. Ask the payee to spell their name if you are unsure.

Your name: Write your full name in the "From" or "Purchaser" field. This is so the payee knows who sent it, and so you can track it if something goes wrong.

Amount: Write the dollar amount in both numbers and words (for example, "$50" and "Fifty Dollars"). The seller will usually print the amount, but check that it matches what you asked for.

Memo line: This is optional. You can write what the money is for — "Rent," "Invoice #123," or "Birthday gift" — but it is not required. The payee will see it but does not need it to cash the money order.

Your signature: Sign the money order in the signature line. Do not sign it before you fill in the payee's name — if you do, someone else could fill in their own name and cash it.

How the payee cashes or deposits a money order

The payee takes the money order to a bank, credit union, or check-cashing business and hands it over like a check. If they have a bank account, they can deposit it directly. If they do not have an account, they can cash it at a check-cashing business or at some banks and retailers.

Most banks and credit unions deposit money orders the same day or next business day. Check-cashing businesses usually give cash when ready, but charge a fee (usually $2 to $5). Some grocery stores and pharmacies will cash money orders for free if the payee shops there, though policies vary.

The payee should keep the receipt until the money order clears, in case there is a problem. Once it clears, the money is theirs and cannot be reversed.

How to track a money order if it goes missing

Keep your receipt. It has a tracking number on it that matches the money order. If the payee says they never received it, or if you think it was lost in the mail, you can contact the seller (Post Office, bank, or store) with your receipt and ask them to trace it.

The Post Office can search for a money order using the tracking number. This takes about 30 days. If they find it and it has not been cashed, they can issue you a replacement. If it has been cashed, they will tell you who cashed it and when.

Banks and check-cashing businesses have their own tracing processes, which are usually faster than the Post Office. Call the location where you bought it with your receipt number and ask what information they need from you.

Do not send a second money order until you have confirmed the first one was lost. If both arrive, the payee could cash both by mistake, and you would have to dispute the duplicate with the seller.

Money order limits and when to use something else

Most money orders have a maximum of $1,000. If you need to send more than that, you can buy multiple money orders, but this gets expensive because you pay a fee for each one. For amounts over $1,000, a cashier's check from your bank is usually cheaper and faster.

Money orders are useful when the payee does not have a bank account, when you do not have a bank account, or when you want a record of payment without using a personal check. They are also safer than cash because they can be traced and replaced if lost.

If you are paying a bill to a company that accepts online payments, paying online is faster and free. If you are sending money to someone you know, a bank transfer or payment app (Venmo, PayPal, Cash App) is usually faster and has no fee. Money orders work best for formal payments like rent, court fees, or payments to businesses that do not accept digital payments.

Common mistakes to avoid

Signing before filling in the payee: Once you sign, anyone can write in a name and cash it. Fill in the payee's name first, then sign.

Writing the payee's name wrong: The payee cannot cash it if the name does not match their ID. Ask them to spell it and write it exactly as it appears on their identification.

Leaving the payee line blank: Some sellers will let you leave it blank and fill it in later, but this is risky. Fill it in before you leave the location.

Not keeping the receipt: You need it to trace the money order if something goes wrong. Keep it until the payee confirms they cashed it.

Mailing it without tracking: Money orders can get lost in the mail. If you are mailing it, use certified mail with a tracking number so you know when it arrives.

Frequently Asked Questions

Can I buy a money order with a credit card?

Most places do not accept credit cards for money orders. The Post Office, banks, and check-cashing businesses usually require cash or a debit card. Some grocery stores may accept credit cards, but policies vary by location. Call ahead to ask.

What if I made a mistake on the money order?

You cannot fix a money order once it is filled out and you have left the seller. If you made a mistake, ask the seller if they will cancel it and issue a new one. Some will do this if you have the receipt and the money order has not been cashed. If the payee has already cashed it, you cannot reverse it.

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

Most banks and credit unions clear money orders the same day or next business day, just like checks. Check-cashing businesses usually give cash when ready. If you are mailing it, add time for delivery — typically three to five business days.

Can someone else cash my money order if I lose it?

Only if you have not signed it yet. If you signed it but left the payee line blank, someone could fill in their own name and cash it. If you filled in the payee's name and signed it, only that person can cash it — they will need to show an ID that matches the name you wrote.

Is a money order safer than sending cash in the mail?

Yes. Cash cannot be traced or replaced if it is lost or stolen. A money order has a tracking number, so you can learn about it was cashed and by whom. If it is lost before it is cashed, the seller can issue a replacement.