How to Fix a Mistake on a Money Order

Money orders offer a secure way to send funds, serving as an alternative to personal checks or cash. While generally straightforward, errors can occur during their issuance or completion. Promptly addressing any mistake is important to ensure the intended recipient receives the correct funds and to prevent potential financial losses.

Understanding Your Mistake and Money Order Status

Identifying the specific error on a money order is the first step toward correction. Common mistakes include an incorrect payee name, an inaccurate amount, or errors in the sender’s information. The money order’s status—whether not yet sent, sent but not cashed, or already cashed—significantly determines the available options.

If the money order has not been sent or has been sent but not cashed, the sender typically retains more control over the correction process. In these instances, it may be possible to request a correction or a refund directly from the issuer.

If the money order has already been cashed by the recipient, the sender’s options become limited. In this scenario, the sender’s primary recourse involves communicating directly with the recipient to resolve any discrepancies.

Gathering Necessary Information and Documents

Before initiating any correction or refund, gather all pertinent information and documents. The original money order stub or receipt is a key document, containing identifiers like the serial number, amount, and details for both sender and payee. This stub serves as proof of purchase and is required for any inquiry or transaction. Valid government-issued identification, such as a driver’s license or state ID, is also required to verify the sender’s identity.

Money order issuers provide specific forms for refunds or tracing lost money orders. These forms ask for the money order number, purchase date, amount, and names and addresses of the sender and recipient. Forms are available from the issuer’s website or physical locations. Accurately completing all required fields using information from the original stub will streamline the resolution process.

Steps for Correction or Refund

Once all necessary information and completed forms are prepared, submit the request to the money order issuer. The method of submission depends on the issuer. For instance, the United States Postal Service (USPS) typically requires submitting forms in person at a post office or by mail. Private issuers like Western Union or MoneyGram may offer in-person submission at agent locations, mail-in options, or even online portals. It is advisable to retain copies of all submitted documents for personal records.

Upon submission, an inquiry or refund request typically enters a processing period. Processing times vary significantly by issuer. For instance, Western Union generally processes refund requests within 30 to 45 days, while MoneyGram may complete refunds in 20 to 30 days for straightforward requests. USPS indicates that investigating a lost or stolen money order can take up to 60 days.

Issuers may charge a processing fee for refund or inquiry services. For example, USPS charges a $5.20 inquiry fee, which includes a copy of a paid money order. Western Union charges a $5.00 fee for money orders under $50 and a $15.00 fee for those $50 or more. MoneyGram charges an $18 processing fee for refund requests. These fees are typically non-refundable, even if the money order cannot be traced or refunded.

After the processing period, the issuer will communicate the outcome. If a refund is approved, the funds may be returned via check, direct deposit, or through the original payment method. Some issuers, like MoneyGram, indicate that refunded funds may show up in a bank account within three to ten business days after processing. It is advisable to keep a record of any case numbers provided and to follow up if the expected processing time elapses without communication.