USPS money order fees vary by the amount you're sending, and the Post Office charges the same fee whether you're buying one or cashing one

The USPS money order fee depends on how much money the order is for. As of 2024, USPS charges one flat rate for orders up to $500 and a higher flat rate for orders from $500.01 to $1,000. The exact dollar amount of these fees changes periodically, so you should ask at your local Post Office or check USPS.com for the current price before you go in.

You pay the fee when you buy the money order, not when someone cashes it. If you're the one cashing a money order that someone sent you, you don't pay a fee — the person who bought it already paid. The fee is the same whether you're sending the money order by mail or handing it to someone in person.

Key Takeaways

  • USPS charges one fee for money orders up to $500 and a separate higher fee for orders between $500.01 and $1,000.
  • You pay the fee only once, at the moment you buy the money order at the Post Office.
  • The person who receives and cashes the money order pays nothing — the fee is already built into what you paid.
  • USPS money order fees are lower than fees charged by many banks and check-cashing services for similar transactions.
  • You need cash or a debit card to buy a USPS money order; the Post Office does not accept credit cards for this service.

How much you actually pay at the counter

When you walk into a Post Office to buy a money order, you hand over the amount of money you want to send plus the fee. If you're sending $200 and the fee is $1.45, you pay $201.45 total. The money order itself shows only the $200 — the fee is separate and stays with the Post Office.

The fee structure is simple: there's one price for smaller amounts and one price for larger amounts. You cannot buy a USPS money order for more than $1,000, so if you need to send more than that, you would need to buy multiple money orders or use a different method like a bank wire or cashier's check.

Why USPS fees are often cheaper than alternatives

Many banks charge higher fees for money orders than USPS does, especially if you're not a customer. Some banks charge $5 to $10 per money order. Check-cashing services and payday lenders often charge even more. If you have a USPS location near you, buying there is usually the lowest-cost option.

Walmart and some grocery stores also sell money orders, and their fees are sometimes comparable to USPS or slightly lower. The trade-off is that store money orders often have a lower maximum amount — many cap out at $500 or $1,000 anyway, so USPS and store options end up being similar for most transactions.

What you need to bring to buy one

Bring cash or a debit card. The Post Office does not accept credit cards for money order purchases. You'll also need to know the exact amount you want to send and the name of the person or business you're sending it to — you fill in the recipient's name on the money order itself.

You don't need an ID to buy a USPS money order under most circumstances, but the Post Office may ask for one. Bring a driver's license or state ID just in case. If you're buying a money order for someone else, you still don't need special permission — you just need to know who it's going to.

Money orders versus other payment methods

A money order is safer than sending cash through the mail because it can be replaced if it's lost or stolen. A check is free if you have a checking account, but not everyone accepts checks anymore, and they take longer to clear. A wire transfer is faster but usually costs more and requires a bank account.

A money order makes sense when you need to send money to someone you don't know well (like a landlord or a seller on a classifieds site), when the recipient doesn't have a bank account, or when you don't have a checking account yourself. It's also useful for paying bills by mail when the company doesn't accept electronic payments.

Tracking and replacing a lost money order

When you buy a USPS money order, you get a receipt. Keep this receipt — it has a serial number that matches the money order itself. If the money order is lost or stolen before the recipient cashes it, you can use the receipt to request a replacement or refund from USPS.

The process takes time, usually several weeks, so don't expect instant results. You'll need to fill out a form and provide the receipt. This is why it's important to keep the receipt safe and to tell the recipient right away if you've sent a money order — if it doesn't arrive, they need to know to expect a replacement rather than thinking you never sent it.

Cashing a money order you received

You can cash a USPS money order at any Post Office for free. You can also cash it at most banks, even if you don't have an account there, though some banks may charge a small fee. Walmart, grocery stores, and check-cashing services will also cash them, usually for free or for a small fee.

Bring the money order and an ID. The person who receives the money order doesn't pay anything — the fee was already paid by the person who bought it. If the money order is made out to you by name, you'll need to sign the back of it before cashing it, just like a check.

Frequently Asked Questions

Can I buy a USPS money order online?

No, USPS money orders must be purchased in person at a Post Office location. You cannot order them online or by phone. You have to go to the counter, hand over your cash or debit card, and complete the transaction face-to-face.

What happens if I make a mistake filling out the money order?

If you write the wrong amount or recipient name, ask the Post Office clerk to void it and start over. Most Post Offices will do this without charging you again. Once you leave the Post Office, you cannot change what's written on the money order.

Is there a fee if I want to cancel a money order I just bought?

USPS will refund your money if you cancel within a certain timeframe, but policies vary by location. Ask at the counter immediately if you change your mind. If you wait days or weeks, the Post Office may charge a fee to research and cancel it, or may not cancel it at all.

Can I use a money order to pay my rent or utilities?

Yes, many landlords and utility companies accept money orders. Call ahead to confirm they take them and ask where to send it. Some may prefer checks or online payments, so it's worth asking what payment methods they accept before you buy the money order.

What's the difference between a USPS money order and a bank money order?

Both work the same way — they're a safe way to send money. The main difference is where you buy them and the fee. USPS fees are usually lower than bank fees, and USPS locations are often more convenient. Some banks don't sell money orders at all anymore.