When you need a secure way to send a payment but don‘t have a checking account, a money order from the United States Postal Service (USPS) can be an excellent solution. USPS money orders are widely accepted, easy to purchase, and cost less than most other options.
In this comprehensive guide, we‘ll cover everything you need to know about USPS money orders – where to get them, how much they cost, payment methods accepted, maximum amounts, how to cash them, and more helpful tips. Let‘s dive in!
USPS Money Orders: A Popular Payment Method
The United States Postal Service has been issuing money orders since 1864, providing a convenient and affordable way for people to send payments safely. Today, USPS sells approximately 90 million money orders annually, with a face value of nearly $21 billion.
"For many Americans, especially those without access to traditional banking services, the local post office is a trusted place to conduct basic financial transactions like purchasing money orders," said John McHugh, former Postmaster General, in a press release. "USPS is proud to offer this secure, low-cost payment option in every community we serve."
Where to Buy USPS Money Orders
You can purchase USPS money orders at any post office location in the United States. However, it‘s important to note that while all post offices sell domestic money orders, not every location offers international money orders.
To find a post office near you that sells the type of money order you need, use the USPS.com location tool. Enter your address or ZIP code, then look under "Location Details" to see if the branch provides money order services. For international money orders, "Money Orders International" must be listed.
Unfortunately, you cannot buy USPS money orders online through the website. They are only available for purchase in-person at physical post office locations.
USPS Money Order Fees & Limits
One of the biggest advantages of getting a money order from USPS is the low cost compared to other issuers. Here‘s how USPS fees stack up:
| Money Order Amount | USPS Fee | Walmart Fee | Western Union Fee | Bank Average Fee |
|---|---|---|---|---|
| Up to $500 | $1.45 | $0.88 | $1.25 | $5.00 |
| $500.01-$1000 | $1.95 | $1.88 | $1.25 | $10.00 |
| International | $10.45 + country fee | N/A | Varies | Varies |
As you can see, USPS offers some of the most competitive pricing, especially compared to banks which often charge $5 or more per money order. Western Union has a flat $1.25 fee, but their money orders have a $500 maximum.
For domestic money orders, the USPS maximum amount per money order is $1,000. So if you need to send more than that, you‘ll have to purchase multiple.
Buying more than 3 money orders totaling $3,000 or more at a time will require filling out a special form (PS Form 8105-A) and presenting a valid ID for USPS record keeping and to comply with anti-money laundering regulations.
International USPS money orders have a lower maximum amount of $700 per money order, with two country exceptions:
- El Salvador: $500 maximum
- Guyana: $500 maximum
These limits help minimize losses in case an international money order is lost or stolen. Not all post offices sell international money orders, so be sure to check location services first.
Accepted Payment Methods
When purchasing a USPS money order, you have a few different options to pay for it:
- Cash (bills and coins)
- Debit card (requires PIN)
- Traveler‘s check (if at least 50% of the check‘s value)
USPS does NOT accept credit cards or personal checks as payment for money orders. This policy helps ensure they receive the funds upfront and protects against bounced checks or credit card chargebacks.
Even if you try to run a debit card as credit without a PIN, the clerk will require you to enter your PIN for the transaction to be authorized and funds immediately withdrawn from your account.
Filling Out a USPS Money Order
To fill out a USPS money order properly, follow these steps:
- Fill in the recipient‘s name on the "Pay to" line.
- Write your full name and address on the "Purchaser" lines.
- Fill in your full name and address on the back of the receipt.
- Sign the front of the money order in the "Purchaser‘s Signature" area.
It‘s crucial to print clearly and use a pen to avoid any errors that could delay the cashing process. If you make a mistake, do not try to correct it – ask the clerk to void the money order and start a new one.
Here is a visual guide:
For extra security, keep your receipt in a safe place until you verify the money order was received and cashed by the recipient. You‘ll need that receipt number to track the money order or request a refund if it‘s lost or stolen.
Cashing USPS Money Orders
If you receive a USPS money order as payment, you have a few options to cash it:
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Cash at any post office location, free of charge. You‘ll need to sign the back in front of the clerk and show a valid photo ID.
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Deposit into your bank account. Most banks accept USPS money orders like a regular check.
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Cash at a grocery store or check cashing service. Fees may apply – for example, Walmart charges $4 to cash USPS money orders up to $1000.
The funds are generally available immediately when cashing a postal money order at USPS or using a check cashing service. If depositing to a bank account, the first $200 is usually available within one business day, with the remainder available the following business day.
Replacing Lost or Stolen USPS Money Orders
If your USPS money order is lost, stolen, or damaged, you can request a replacement by filling out a Money Order Inquiry (Form 6401) at your local post office or by calling 1-800-ASK-USPS.
The inquiry process can take up to 60 days and requires paying a $6.95 processing fee. If approved, a replacement money order will be issued. However, if the original money order was already cashed, no refund will be provided. That‘s why it‘s important to keep your receipt until you confirm the money order reached the recipient.
USPS money orders have several security features to prevent counterfeiting, such as watermarks and special ink. There is also a unique serial number on each money order to enable tracking.
Alternatives to USPS Money Orders
While USPS money orders are a reliable payment method, they‘re not always the most convenient, especially in our increasingly digital world. Some popular alternatives include:
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Venmo – A mobile payment app owned by PayPal that allows instant money transfers between friends and family. It‘s free to send money from a linked bank account or Venmo balance.
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Zelle – A digital payment network offered through many major US banks that enables fast, safe money transfers using just an email address or phone number. There are no fees in most cases.
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PayPal – One of the original online payment services, PayPal lets you send money to anyone with an email address. Fees may apply for certain transactions.
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Cash App – A peer-to-peer payment app with a debit card option. You can send money instantly and your recipient can spend it from their Cash App balance or withdraw to a linked account. Some fees may apply.
While these modern money transfer options can be quick and easy, they do require both parties to have an account with the service. USPS money orders are still the better choice if you need to send a payment to someone without access to digital platforms.
The Bottom Line
USPS money orders remain a trusted, affordable, and widely accepted payment method for millions of Americans. By understanding the fees, filling process, and cashing procedures, you can use this secure financial instrument with confidence in situations where cash or personal checks aren‘t ideal.
Whether you‘re sending money to a relative, making a purchase from a private seller, or need to pay a bill, a USPS money order is a smart choice to consider. And with over 34,000 post office locations across the country, you‘re never far from this convenient service.
