How Long Is a Money Order Good For and What Happens If It Expires?
Understand the lifespan of money orders, potential fees, and steps to take if yours expires or becomes outdated.
Money orders serve as a secure way to send money without the need for a personal check or electronic transfer. However, understanding their validity period is crucial, as it can financially impact both the sender and recipient.
Issuer-Specific Expiration Periods
The validity of a money order depends on its issuer, making it essential to review the terms of each provider. For instance, United States Postal Service (USPS) money orders do not expire, offering flexibility for senders and recipients. However, it’s still wise to cash them promptly to avoid risks like loss or theft.
Western Union money orders also do not technically expire but may incur a non-refundable service fee after one to three years, depending on state regulations. These fees can gradually reduce the money order’s value. Similarly, MoneyGram money orders remain valid indefinitely but may impose a monthly fee after one year, further diminishing their worth over time. Recipients should familiarize themselves with these policies to avoid unexpected losses.
Fee Implications Over Time
Delaying the cashing of a money order can lead to financial drawbacks, particularly when service fees are involved. Issuers like Western Union and MoneyGram charge these fees, which can erode the money order’s value. For example, a $2 monthly fee could result in a $24 reduction over a year. Cashing money orders promptly is key to preserving their full value.
In some states, consumer protection laws limit or prohibit such fees. Recipients should check their state regulations to ensure they are not subject to unwarranted charges. Understanding these rules can help recipients make informed decisions about when and where to cash a money order.
Redeeming or Cashing a Stale-Dated Money Order
Redeeming a stale-dated money order can be challenging, but knowing the process is important. Start by verifying the money order’s status to determine if it has been cashed or remains outstanding. Many issuers provide tracking services for this purpose.
Next, identify where the money order can be cashed. Banks and financial institutions may have differing policies for stale-dated money orders—some might refuse to cash them if they are too old, while others may require additional verification. Contacting the bank or institution beforehand to confirm their requirements, including necessary documentation like identification or proof of purchase, can help streamline the process.
Reissuing or Replacing an Outdated Money Order
If a money order is outdated, reissuing or replacing it may be an option. This typically involves contacting the issuer and submitting a formal request along with the original receipt or proof of purchase. These documents serve as evidence of the transaction.
For lost or damaged money orders, issuers may require additional paperwork, such as an affidavit or indemnity bond, to protect against fraud or double cashing. Processing fees may apply, varying by issuer and the money order’s value. Since these fees are non-refundable, they should be factored into the decision to pursue reissuance.