Do Money Orders Have Dates on Them?
Understand the core elements of money orders, from their essential characteristics to factors affecting their validity.
Money orders generally include an issue date, indicating when the financial instrument was created. While they typically do not have a hard expiration date, the passage of time can lead to a reduction in their value due to service fees or the funds eventually being turned over to the state.
Dates on Money Orders
A money order prominently displays an issue date, which marks the day it was purchased and activated. This date is usually located on the front of the money order, often near the amount or the issuer’s details. Unlike personal checks, which may become stale-dated, most money orders do not have a strict expiration date printed on them, meaning they technically remain valid indefinitely. However, this does not imply that their full value is guaranteed indefinitely.
While a money order may not expire, many issuers begin to deduct non-refundable service charges if the money order remains uncashed or undeposited for an extended period, typically ranging from one to three years after the issue date. For instance, an issuer might impose a monthly service fee of around $2 after one to three years of inactivity, which directly reduces the money order’s principal value. United States Postal Service (USPS) money orders are an exception, as they do not expire or accrue such fees over time, preserving their full value regardless of when they are cashed.
Why Dates Matter
The issue date on a money order is used for tracking and verification. It serves as a starting point for any dormancy periods that may apply, which can lead to the assessment of service fees. If a money order remains uncashed for a specified period, typically ranging from one to seven years depending on the issuer and state regulations, it can be deemed dormant. Once considered dormant, the issuer may begin deducting service fees from the money order’s value, which can significantly reduce the amount the recipient receives. This reduction directly impacts the final amount received by the payee.
Beyond service fees, dormancy can also lead to escheatment, where unclaimed funds are turned over to the state as abandoned property. Each state has specific unclaimed property laws that dictate the dormancy period after which funds, including those from uncashed money orders, must be remitted to the state treasury. This process ensures that owners can still claim their funds, but they would do so directly from the state’s unclaimed property division rather than the original issuer.
Other Essential Money Order Information
Beyond dates, other pieces of information on a money order contribute to its proper use and security. The payee’s name, identifying the individual or entity authorized to receive the funds, must be accurately entered. The remitter’s (purchaser’s) name and address are recorded for identification and record-keeping purposes. The exact monetary amount of the payment is clearly stated, and domestic money orders often have a maximum limit, typically around $1,000.
Each money order is assigned a unique serial number for tracking its status and for any inquiries or replacement requests. The name of the issuing entity, such as a bank, post office, or retail chain, is also displayed, as they guarantee the funds. The purchaser should retain the receipt or stub provided at the time of purchase, as it contains this serial number and other details necessary for tracing the money order or requesting a refund if it is lost or stolen.