Money order costs range from about 70 cents to $5 depending on the amount and where you buy it
A money order is a prepaid payment method you buy at a store or bank, then give to someone else to cash. You pay the face amount of the money order plus a fee. The fee itself is usually small — often under $2 — but it varies by where you buy it and how much money the order is for. A $500 money order might cost $1.50 at a grocery store but $3 at a check-cashing service.
Money orders are cheaper than cashier's checks for small to medium amounts. They're also faster to obtain — you can walk out with one in minutes — and they don't require a bank account. The tradeoff is that money orders have lower limits (usually $500 to $1,000 per order) and are less useful for large payments.
Key Takeaways
- Money order fees typically run 70 cents to $5, with lower fees at banks and grocery stores than at check-cashing businesses.
- The fee is separate from the face amount — if you buy a $200 money order for $1.50, you pay $201.50 total.
- Most money orders cap out at $500 to $1,000, so you'll need multiple orders or a cashier's check for larger amounts.
- You don't need a bank account to buy a money order, making them accessible even if you use cash-only banking.
Where to buy a money order and what each place charges
Banks and credit unions usually charge the least — often 50 cents to $1.50 per money order, regardless of the amount. However, not all banks sell them, and some require you to be a customer. Call ahead before you go.
Grocery stores and drugstores (Walmart, Target, Kroger, CVS, Walgreens) typically charge $0.70 to $1.50 per money order. These are usually the cheapest options outside a bank and don't require membership or an account. They're also widely available.
Check-cashing services and payday loan stores charge the most — often $2 to $5 per money order. Use these only if you have no other option nearby, since the fee can double or triple what you'd pay elsewhere.
Post offices charge around $1.45 to $1.95 per money order, depending on the amount. They're reliable and widely available, but not always cheaper than a grocery store.
How the fee is calculated and what you actually pay
The fee is added on top of the face amount. If you want to send someone $300, you buy a $300 money order and pay the fee separately. At a grocery store charging $1, you'd pay $301 total out of pocket.
Some places charge a flat fee per order (usually $1 to $2), while others charge a percentage of the amount. A percentage-based fee might be 1% of the money order value, meaning a $1,000 order costs $10 in fees. Always ask the fee before you buy, because it varies by location and by the amount you're ordering.
If you need to send a large amount, you may need to buy multiple money orders. Sending $2,000 might mean buying four $500 money orders at $1 each, costing you $4 in fees total. A cashier's check for the same amount might cost $10 to $15, but you'd only need one piece of paper.
Money orders versus cashier's checks for different situations
Use a money order for amounts under $1,000, when you need it quickly, or when you don't have a bank account. They're ready in minutes and cost less than a cashier's check for small payments.
Use a cashier's check for amounts over $1,000, when the recipient needs extra security, or when you're making a large purchase like a down payment on a house. Cashier's checks are may provide by the bank and carry more weight in formal transactions, but they cost more and require a bank account.
For everyday bills or rent, ask if the landlord or company accepts online payment, automatic transfer, or a regular check. Those options are often free or cheaper than either money order or cashier's check.
How to fill out a money order correctly
The cashier will ask you for the recipient's name before they issue the money order. Write or print this name in the "Pay to the Order of" field — this is the only person who can cash it. Do not leave this blank or write it in pencil.
Sign the back of the money order in the "Purchaser's Signature" or "Sender's Signature" field. Some money orders also ask for your address or phone number. Fill these in as requested. The recipient will sign the back when they cash it.
Keep your receipt. It shows the money order number and amount, and you'll need it if the money order is lost or never cashed. Most places let you put a stop on a money order or request a refund if something goes wrong, but only if you have proof of purchase.
What happens if a money order is lost or stolen
If you lose a money order before you send it, contact the place where you bought it immediately. Bring your receipt. They can usually issue a replacement or refund, though it may take a few days to a few weeks while they verify the original wasn't cashed.
If you send a money order and the recipient says they never got it, ask them to wait a few weeks. Money orders can take time to clear. If it truly disappeared, you can file a claim with the issuer (the bank, grocery store, or post office that sold it). Again, you'll need your receipt with the money order number.
If someone else cashes a money order you sent to a specific person, that's fraud. Report it to the issuer and to your local police. The money order number on your receipt helps them investigate.
Frequently Asked Questions
Can I buy a money order with a credit card?
Most places don't accept credit cards for money orders because they're considered cash equivalents. You'll usually need cash or a debit card. Some banks let account holders buy money orders by transferring funds from their account, but this is less common.
What's the maximum amount for a single money order?
Most issuers cap money orders at $500 to $1,000 per order. The limit varies by location and issuer. If you need to send more, you'll buy multiple money orders. Ask the cashier what the limit is before you decide how many to buy.
How long does it take to cash a money order?
Most banks and check-cashing services cash money orders on the spot. Some may hold it for a day or two if it's from an unfamiliar issuer. The recipient should ask the cashier how long it will take before they hand over the money order.
Do I need ID to buy a money order?
Most places don't require ID to buy a money order, but some do — especially check-cashing services. Bring your ID to be safe. You won't need ID to cash one that someone else sent you, though the cashier may ask for it.
Is a money order safer than cash?
Yes. If you lose cash, it's gone. If you lose a money order, you can file a claim with your receipt. A money order also creates a paper trail showing who received it and when, which cash doesn't provide.