MoneyGram and money orders are different ways to send money, and which one you choose depends on where you're sending it and how fast you need it to arrive

A money order is a paper document you buy at a store or bank, fill out with the recipient's name, and mail or hand over. A MoneyGram is a service that lets you send money electronically through a network of agent locations — usually convenience stores, supermarkets, or check-cashing shops. With MoneyGram, the recipient picks up cash at a location near them, often within minutes or hours. With a money order, they deposit or cash it at a bank or store, which takes a few days if mailed.

The main trade-off is speed versus cost. MoneyGram is faster but usually costs more per transaction. Money orders are cheaper but slower, especially if you mail them. Both are safer than sending cash because they can be replaced if lost or stolen, and both work without a bank account.

Key Takeaways

  • MoneyGram sends money electronically to a pickup location; money orders are paper documents you mail or hand over.
  • MoneyGram transfers arrive within hours and cost $2 to $10 depending on the amount; money orders cost 50 cents to $5 and take days by mail.
  • MoneyGram requires the recipient to know a reference number and show ID at pickup; money orders just need to be deposited or cashed.
  • Money orders work anywhere in the US and internationally through some providers; MoneyGram works in 200+ countries but only where agent locations exist.
  • Both are safer than cash because they can be cancelled and replaced if lost, but neither offers the fraud protection a bank transfer does.

How MoneyGram works and what it costs

You go to a MoneyGram agent location (usually a Walmart, CVS, Walgreens, or local check-cashing store), give the agent cash, and tell them where you want the money sent. You provide the recipient's name and country. The agent prints a receipt with a reference number — the recipient needs this number to pick up the money. You pay the transfer fee at that moment; it is not deducted from the amount sent.

MoneyGram fees vary by location and amount. Sending $100 domestically might cost $2 to $5; sending $1,000 might cost $8 to $15. International transfers cost more — often $10 to $30 depending on the destination country. Some agent locations charge their own additional fee on top of MoneyGram's standard rate, so ask before you hand over cash.

The recipient goes to any MoneyGram agent location in their country, provides the reference number you gave them, shows a government ID, and receives the cash. This usually happens within minutes to a few hours. MoneyGram also offers a mobile app where you can initiate transfers if you have a bank account linked, but the cash pickup still requires an agent location.

How money orders work and what they cost

You buy a money order at a post office, bank, grocery store, or check-cashing shop. You fill in the recipient's name (the payee), your name (the purchaser), and the amount. You pay the face value of the money order plus a small fee — typically 50 cents to $2 for domestic orders under $1,000. You keep the receipt stub in case you need to track or cancel it.

You then mail the money order to the recipient or hand it to them directly. If mailed, it takes 3 to 7 business days to arrive. The recipient deposits it at their bank, cashes it at a store, or deposits it at a check-cashing shop. Unlike MoneyGram, there is no reference number or ID check — whoever has the physical money order can cash it, which is why you should mail it carefully or hand it directly to the person.

Money orders are issued by the US Postal Service, banks, or private companies like Western Union. USPS money orders work at any post office and most banks. Bank-issued money orders work at that bank and sometimes at other financial institutions. Private money orders (like Western Union) work at their agent locations. International money orders exist but are less common and slower — most people use MoneyGram or Western Union for cross-border transfers instead.

Speed: when each option gets the money there

MoneyGram is the faster choice. Domestic transfers arrive within minutes to a few hours, depending on the agent location's hours and how quickly the recipient can get there. International transfers to most countries arrive within 1 to 3 business days. The recipient does not have to wait for mail or for a bank to process a deposit.

Money orders take longer. If you mail a money order, add 3 to 7 business days for postal delivery, then another 1 to 3 business days for the recipient's bank to clear it (if they deposit it). If you hand it over in person, they can cash it immediately at a store or deposit it the same day, but the bank clearing still takes a day or two. If the recipient needs the money urgently, MoneyGram is the better option.

Cost comparison: which is cheaper

Money orders are cheaper for most transactions. A domestic money order costs 50 cents to $2, regardless of whether you send $50 or $1,000. MoneyGram charges a percentage-based fee that grows with the amount — $2 to $5 for small transfers, $10 to $20 for larger ones. If you are sending under $500 domestically, a money order is almost always less expensive. If you are sending internationally or need the money to arrive the same day, MoneyGram's higher cost is the trade-off for speed.

Some MoneyGram locations offer promotional rates or discounts if you use their app or have a loyalty account, so ask. Some banks waive money order fees for customers, so check with your bank before buying elsewhere. For very small amounts (under $50), the fee difference is minimal — a few dollars either way — so convenience might matter more than cost.

Safety and what happens if something goes wrong

Both MoneyGram and money orders are safer than mailing cash because they can be cancelled and replaced if lost or stolen. With a money order, keep your receipt. If the money order is lost or stolen before the recipient cashes it, you can contact the issuer (USPS, your bank, or Western Union) with your receipt number and request a refund or replacement. This usually takes 30 to 60 days.

With MoneyGram, keep your receipt with the reference number. If the money order is not picked up within a set time (usually 90 days), you can request a refund. If it is picked up fraudulently, MoneyGram can investigate, but recovery is not may provide. Neither option offers the same fraud protection a bank transfer does — if someone intercepts a MoneyGram reference number, they can pick up the cash if they have an ID.

Do not send either a money order or MoneyGram to someone you do not trust. Both are essentially cash once they are in the recipient's hands, and you cannot reverse the transaction after pickup or cashing.

Where you can send money with each option

Money orders work domestically throughout the US and can be sent internationally, but international money orders are slow and uncommon. Most US banks and the USPS issue them, and they are accepted at banks and check-cashing shops in most countries, but the process is cumbersome and can take weeks. For international transfers, MoneyGram is the standard choice.

MoneyGram operates in over 200 countries and territories, but only where agent locations exist. You can send money to most of Latin America, Africa, Asia, and Europe, but rural areas may not have a nearby pickup location. Before you send, ask the recipient if there is a MoneyGram agent near them. If not, a money order or a bank wire might be your only option.

When to use MoneyGram versus a money order

Use MoneyGram when the recipient needs cash urgently, when they live far away and you cannot mail a money order safely, or when you are sending money internationally. Use it if the recipient does not have a bank account and cannot deposit a check. The higher fee is worth it for speed and the ability to send across borders.

Use a money order when you are sending money domestically and cost matters more than speed, when you want a simple paper trail, or when the recipient prefers to deposit it at their bank. Use it if you do not have access to a MoneyGram location or if you are sending a small amount where the fee difference is just a dollar or two.

If the recipient has a bank account, a direct bank transfer or ACH transfer is often cheaper and faster than either option. If you both have the same bank, an internal transfer might be free and instant. Only use MoneyGram or money orders when the recipient cannot receive a bank transfer.

Frequently Asked Questions

Can I send a MoneyGram or money order to someone without a bank account?

Yes, both work without a bank account. The recipient can cash a money order at a check-cashing shop, grocery store, or bank (even if they do not have an account there). A MoneyGram recipient picks up cash at an agent location with just an ID and the reference number. Both are designed for people who do not use banks.

What if I send a money order and it gets lost in the mail?

Contact the issuer (USPS, your bank, or Western Union) with your receipt number. They will investigate and issue a replacement or refund, usually within 30 to 60 days. This is why keeping your receipt is critical. If the money order has already been cashed, you cannot recover the money.

Can I cancel a MoneyGram after I send it?

Yes, but only if the recipient has not picked it up yet. Contact MoneyGram with your reference number and receipt. If the money has been picked up, you cannot cancel it. Refunds for unclaimed transfers usually process within 5 to 10 business days.

Is MoneyGram safer than mailing cash?

Yes. If cash is lost or stolen in the mail, it is gone. A MoneyGram can be cancelled if not picked up, and a money order can be replaced with your receipt. Neither is as safe as a bank transfer, but both are safer than cash.

Can I use MoneyGram if I do not have a bank account?

Yes. You can pay with cash at any MoneyGram agent location. You do not need a bank account to send or receive a MoneyGram, only to use their mobile app to initiate transfers.