What to Do With an Unused Money Order?

Money orders offer a secure method of payment, functioning similarly to a pre-paid check. If a money order remains unused, perhaps due to a change in plans, the recipient no longer needing payment, or an incorrect amount, understanding the options for cashing, refunding, or addressing loss is important.

Cashing or Depositing an Unused Money Order

If you have a valid, unused money order, you can cash or deposit it. This typically requires presenting the physical money order along with valid identification. It is advisable to ensure the money order is not damaged. While money orders generally do not expire, particularly those issued by the U.S. Postal Service (USPS), this is still a good practice.

You can cash a USPS money order at any Post Office location for no fee. Most banks and some retail stores also offer cashing or depositing services, though third-party services might charge a small fee, often around 1-3% of the money order’s value. For deposits, endorse the back of the money order, similar to a personal check, before submitting it to your bank. Funds from a money order deposit usually become available within one to two business days, although some banks might hold funds for a longer period depending on their policies.

Requesting a Refund for an Unused Money Order

You can request a refund for an unused money order directly from the issuer. This option is suitable if cashing or depositing is not convenient. You will need the original money order and, ideally, the purchase receipt.

To initiate a refund, contact the issuer, such as USPS, Western Union, or MoneyGram. They will require you to complete a specific form, asking for details like the money order’s serial number, amount, and purchase date. The original money order may need to be surrendered or sent back to the issuer as part of the refund process.

Refund Fees and Processing Times:

Western Union: Charges $5 for money orders under $50 and $15 for those $50 or more. Refunds can take up to 30 days.
MoneyGram: Charges an $18 processing fee. Refunds are typically processed within 15 days.
USPS: Charges a $6.25 inquiry fee for domestic money orders when requesting a refund or replacement.

Handling Lost or Stolen Money Orders

If a money order is lost or stolen, the recovery process becomes more involved. The purchase receipt is crucial, as it contains vital information like the serial number, amount, and purchase date necessary for tracing the money order. If the money order was stolen, filing a police report is advisable, as some issuers may require it for their investigation.

Contact the issuer as soon as possible to report the loss or theft. Issuers will generally initiate a tracing process to determine if the money order has been cashed. You will need to complete a form, such as an “Affidavit of Lost or Stolen Money Order,” often signed under penalty of perjury, confirming the loss. It is important to retain copies of all submitted documents for your records.

Lost/Stolen Money Order Fees and Processing Times:

USPS: Charges a $21 processing fee to replace a lost or stolen money order. The investigation can take up to 60 days.
Western Union: May charge $15 with a receipt or $30 without one. The process can take up to eight weeks.
MoneyGram: Charges an $18 processing fee for replacement requests. These are usually processed within 7-10 business days.