Who Sells the Cheapest Money Orders?

Money orders offer a secure and reliable way to send or pay money, serving as a tangible alternative to cash or personal checks. These prepaid instruments ensure funds are available when the recipient presents them for cashing. They are particularly useful for individuals who may not have a traditional bank account or when a personal check is not an accepted form of payment. Money orders are utilized for various transactions, such as paying bills, making purchases, or sending funds to family members.

Where to Find Money Orders and Their Costs

Money orders are available at numerous retail and financial locations. The cost of a money order can vary significantly depending on where it is purchased and the amount being sent. Understanding these differences can help consumers find the most economical option.

The United States Postal Service (USPS) is a common location for purchasing money orders, offering a flat fee structure. For domestic money orders up to $500, the fee is $2.55, and for amounts between $500.01 and $1,000, the fee is $3.60. USPS money orders have a maximum value of $1,000 per order.

Large retail chains like Walmart often present a competitive option for lower fees. Walmart, partnering with MoneyGram, charges a maximum fee of $1 for money orders, with many locations charging less, such as $0.88 or $0.70. These money orders can be purchased for amounts up to $1,000.

Many grocery store chains, including Kroger and Safeway, sell money orders, often through services like Western Union. Fees at these locations are low, ranging from $0.59 to $1. Purchase limits vary by location, often capping at $500 or $1,000 per money order. Convenience stores, such as 7-Eleven, also offer money orders, with fees starting around $0.65. Some may charge a percentage of the amount, increasing the cost for higher values.

Traditional financial institutions like banks and credit unions issue money orders. While convenient for account holders, these typically have higher fees, often around $5 per money order. Some banks or credit unions may waive this fee for customers with premium accounts. Money orders from banks and credit unions generally have a maximum limit of $1,000. Most locations, including USPS, Walmart, and grocery stores, primarily accept cash or debit cards for money order purchases. Credit cards are usually not accepted or may incur additional cash advance fees.

Steps to Buying a Money Order

Once a vendor is chosen, purchasing a money order involves a few straightforward steps. The purchaser needs specific information ready for an accurate transaction. This includes the exact dollar amount, the recipient’s full legal name (payee), and sometimes their address.

Payment for the money order, including face value and fees, is usually required in cash or with a debit card. Using a credit card for a money order is not advisable, as many issuers treat such transactions as cash advances, which can result in immediate fees and higher interest rates. After payment, the money order form is provided, requiring the purchaser to fill in the recipient’s name in the “Pay to the order of” section.

The purchaser’s name and address must be entered in the designated “From” or “Purchaser” section. Some money orders include an optional memo line for a brief note, such as an account number or invoice reference. The purchaser must sign the front of the money order in the indicated area, leaving the back blank for the recipient’s endorsement. Accurate completion of these details is important, as errors can lead to delays or issues for the recipient.

After You Buy a Money Order

Upon completing the purchase, it is important to take certain precautions. Keep the receipt or the detachable stub that comes with the money order. This receipt contains crucial information, including the money order’s serial or tracking number, and serves as proof of purchase.

This tracking number is essential for verifying if the money order has been cashed or for initiating an inquiry if it is lost or stolen. Most issuers provide a way to track the money order’s status online or through a customer service line. While some basic tracking may be free, formal inquiries or requests for copies of cashed money orders might involve a fee, especially if the original receipt is misplaced.

For the recipient, cashing or depositing a money order is similar to handling a personal check. The recipient needs to endorse the back of the money order and can present it at a bank, credit union, or the issuing post office for cashing. Some retail locations that offer check-cashing services may also cash money orders, though they might charge a fee. Identification is usually required for cashing. While banks often cash money orders for their customers without a fee, non-customers may incur a charge.