Do Money Orders Have a Purchase Date on Them?
Understand the presence and significance of dates on money orders, including their purchase date, for tracking and validity.
A money order serves as a secure payment method, often utilized when a bank account is unavailable or when sending funds safely is a priority. It functions as a prepaid certificate, ensuring the recipient receives the specified amount because the funds are secured by the issuer at the time of purchase. This article will explore the presence of dates on money orders and their significance throughout the payment process.
Understanding Money Order Dates
Money orders typically feature an “issue date” or “purchase date” clearly printed on the document. This date signifies when the money order was acquired from the issuing institution, such as a post office, bank, or retail store. While the exact placement can vary, this date is usually found near the top, possibly adjacent to the amount or below the payee line.
Although “purchase date” is a common term, “issue date” is frequently used by official issuers. While money orders do not generally have a fixed expiration date like a personal check, some may include statements regarding potential service charges or dormancy periods. This distinction is important, as it impacts the money order’s long-term value, even if it does not technically expire.
Significance of Dates for Money Orders
The issue or purchase date on a money order is crucial for tracking and managing the funds. This date allows both the sender and receiver to monitor the money order’s status, which is particularly useful if it is lost or delayed. Keeping the purchase receipt, which contains the serial number and issue date, is essential for tracing the money order.
Many issuers may begin to deduct non-refundable service charges from the principal amount if the money order remains uncashed for an extended period, commonly ranging from one to three years after the purchase date. These fees can incrementally reduce the money order’s value over time, potentially depleting it entirely.
If a money order remains uncashed for a significant duration, typically between three to seven years, the funds may become subject to state escheatment laws. These laws dictate that unclaimed property must be turned over to the state as abandoned property if the owner cannot be located or has not shown interest in the funds for a specified dormancy period. Should this occur, the original owner or payee would then need to contact the state’s unclaimed property office to reclaim the funds. United States Postal Service (USPS) money orders are a notable exception, as they generally do not incur service fees or expire, maintaining their full value indefinitely.