How to Reverse a Money Order and Get Your Money Back
Get clear guidance on reversing a money order. Learn how to recover your funds and navigate the complete process effectively.
Money orders serve as a secure payment method, often utilized when personal checks are not accepted or when sending cash is not advisable. They function as a prepaid guarantee, as the sender purchases the money order for its face value, plus a small fee, ensuring the funds are available. Individuals might seek to reverse a money order for various reasons, such as the payment no longer being necessary, the money order getting lost in transit, or if it was stolen before reaching its intended recipient.
When Reversal is Possible
A money order can generally be reversed only if it has not yet been cashed or deposited by the recipient. Once funds are disbursed, the transaction is complete from the issuer’s perspective. Reversal attempts commonly occur if the money order is misplaced, or stolen before payment.
If an error was made during purchase, such as an incorrect amount or payee name, a reversal may be pursued if the money order is still in the sender’s possession and uncashed. However, once a money order is cashed, obtaining a reversal is difficult, as the issuer no longer holds the funds.
Information and Documents for Reversal
The original purchase receipt is important for a money order reversal, as it contains the serial number, amount, date, and location of purchase. This receipt serves as proof of ownership and is often a primary requirement.
The money order serial number, typically 10 or 11 digits, tracks payment status. Without it, tracing the money order is more challenging and may incur additional fees. The full name and address of both the sender and recipient are also required to verify transaction details. A valid form of identification, such as a driver’s license or state-issued ID, is frequently requested for verification, especially for in-person requests.
Initiating a Reversal Request
Submit a reversal request to the money order issuer. For U.S. Postal Service (USPS) money orders, visit a Post Office to complete PS Form 6401, the Money Order Inquiry form. This form is used for inquiries regarding lost, stolen, or uncashed money orders and is available at any Post Office.
For Western Union money orders, senders can initiate a refund request online or by contacting customer service. The form requires money order details and often a copy of the purchase receipt. MoneyGram typically requires completing a Money Order Claim Card, submitted by mail with a copy of the receipt and a processing fee.
Most issuers charge a processing or inquiry fee for a reversal request, ranging from $5 to $30, depending on the issuer and receipt availability. For example, USPS charges around $20.15 for a replacement inquiry, while Western Union fees vary from $5 to $15, with higher fees if no receipt is provided. MoneyGram typically charges an $18 processing fee. These fees are generally non-refundable, regardless of the outcome.
What Happens After a Reversal Request
After a reversal request is submitted, the money order issuer begins an inquiry to determine its status. This investigation verifies if the money order has been cashed and by whom. The timeline varies by issuer, generally ranging from 20 to 60 days.
During this period, the issuer usually provides updates. If the investigation confirms the money order has not been cashed, a refund or replacement money order will be issued to the sender. The refund is often provided as a check mailed to the address on the request form.
If Reversal Is Not Possible
If a money order has already been cashed by the recipient, a reversal is typically not possible through the issuer’s standard refund process. Once funds have been disbursed, the issuer’s obligation is generally fulfilled. In such cases, the issuer may provide a photocopy of the cashed money order, showing the endorsement and potentially assisting in identifying who cashed it.
If the money order was cashed fraudulently or by an unauthorized individual, further action is necessary. Report the incident to local law enforcement, as this is a criminal offense. Contacting the money order issuer’s fraud department is also recommended, as they may assist in recovering funds, though success is not guaranteed. Pursuing civil action against the individual who fraudulently cashed the money order may also be an option for financial recovery.