Can a Money Order Be Cancelled? What You Need to Do

Money orders are a reliable, secure payment method, offering an alternative to cash or personal checks. As prepaid financial instruments, funds are secured by the issuer at the time of purchase, providing a guarantee personal checks lack. They are commonly used for various transactions like paying bills, sending money, or making purchases where guaranteed payment is preferred. While generally a final form of payment, circumstances may require cancellation, and understanding this process is important for purchasers.

Key Information Needed for Cancellation

Before initiating a money order cancellation, gather specific information and documentation. The money order number, often called a serial or tracking number, is a unique identifier for the transaction. This number helps the issuer locate the record. The exact amount, date, and location of purchase are also necessary.

Proof of purchase, typically the original receipt or stub, is important. This receipt contains critical transaction details like the money order number, issue date, and amount, serving as concrete evidence. Without this receipt, cancellation can become more complex, potentially incurring higher fees or requiring additional verification.

Know the money order issuer, such as the United States Postal Service (USPS), Western Union, or MoneyGram, as each has specific procedures. Information about both the payee (recipient) and sender, including their names and addresses, will also be required.

Before attempting cancellation, determine if the money order has already been cashed. Many issuers provide online tracking tools or phone services to check its status. If cashed, a direct refund is typically not possible, shifting the process towards investigating potential fraud.

The Cancellation Process

Once all necessary information and documentation are gathered, submit a cancellation request to the money order issuer. This process typically begins by contacting the issuer via phone, online portals, mail, or in-person visits to an authorized location. Many issuers recommend returning to the original purchase location, though other authorized locations within the same network may also accept requests.

The cancellation request often involves completing a specific form, commonly known as a “Money Order Inquiry” or “Refund Request” form. For example, the USPS uses PS Form 6401 for money order inquiries. This form requires you to provide transaction details like the money order number, purchase date, amount, and issuer information. You will typically submit this completed form along with your proof of purchase, such as the original receipt.

Associated fees are common, varying by issuer and whether the original receipt is available. For instance, the USPS charges a fee for a money order inquiry. Western Union may charge around $15 with a receipt or up to $30 without one. MoneyGram might charge nothing if canceled within an hour, but generally, fees can range from a few dollars up to $20 or more. These fees are typically paid when submitting the request.

Understanding the Resolution and Next Steps

After submitting a cancellation request, the issuer investigates to verify the money order’s status. This involves tracing it to confirm if it has been cashed or remains outstanding. Investigation duration varies by issuer, often taking several weeks, sometimes up to 30 to 60 days.

If the investigation confirms the money order has not been cashed, the purchaser is generally eligible for a refund. Refund processes and timelines differ; for example, Western Union may process refunds within 30 to 45 days, while MoneyGram might complete them in 20 to 30 days for straightforward requests. Refunds are usually issued as a check or direct deposit, and the cancellation fee may be deducted.

If the money order has already been cashed, a direct refund from the issuer is typically not possible. If you suspect fraudulent or unauthorized cashing, you may need to file a claim for fraud. This often involves requesting a copy of the cashed money order from the issuer, which may incur an additional fee, to aid your investigation.

You would then typically report suspected fraud to law enforcement, such as the U.S. Postal Inspection Service for USPS money orders. The issuer will usually notify you of their investigation’s outcome and may provide instructions for further actions, such as pursuing legal avenues if fraud is confirmed.