Money orders are one of the simplest ways to send guaranteed funds especially if you don’t have a checking account or don’t want to use one. But how much do they actually cost?
In most cases, between $0.70 and $2 at retail stores, and $5 to $10 at banks. The exact price depends on where you buy it and how much you need.
Let’s break it down in plain English.
Where to Buy a Money Order (And What You’ll Pay)
Retail Stores (Usually the Cheapest Option)
If you’re looking for the lowest fees, start at grocery stores, big-box retailers, or convenience stores. Most of them issue money orders through companies like Western Union or MoneyGram.
Here’s what you’ll typically see:
| Location | Typical Cost | Maximum Amount |
|---|---|---|
| Walmart | Around $0.88 | $1,000 |
| 7-Eleven | Varies by store | $500 |
| Kroger | $0.84–$0.88 | $1,000 |
| MoneyGram locations | Around $0.70+ | $1,000 |
| Western Union locations | Varies | $1,000 |
Real-life example:
If you need to pay a $750 security deposit and buy a money order at Walmart, you’ll likely pay about $0.88 in fees. That’s it.
U.S. Post Office (Very Reliable Option)
Money orders from the United States Postal Service are widely accepted and considered very secure.
Current pricing:
-
$1.45 for $0.01–$500
-
$1.95 for $500.01–$1,000
-
$0.50 for military money orders
-
International money orders: $10.50 plus country-specific fees
USPS money orders are also easier to cash at post offices.
Banks and Credit Unions (Usually More Expensive)
If you walk into a bank and request a money order, expect to pay $5 to $10.
However, some banks waive the fee if you have a checking account.
For example:
| Bank | Cost | Maximum |
|---|---|---|
| Fifth Third Bank | Around $1 (varies) | $1,500 |
| Regions Bank | About $2 | $1,000 |
| Santander Bank | Around $5 | $1,000 |
| TD Bank | Varies (customers only) | $1,000 |
Tip: Always ask if it’s free with your account type you might be surprised.
Money Order Limits: Important to Know
Most money orders have a maximum limit of $1,000.
So if you need to pay $2,000, you’ll need two separate money orders and you’ll pay two separate fees.
If you’re making a larger payment (like buying a car from a private seller), consider a cashier’s check instead. It’s issued directly by your bank and designed for larger amounts.
Extra Fees You Might Not Expect
Buying the money order is just the first step. There can be additional charges later:
-
Tracking a money order (if lost or delayed)
-
Requesting a refund or replacement
-
Cashing it at certain locations
Fees for replacements can range from a few dollars to $20 depending on the issuer.
Always keep your receipt. That serial number is your proof of purchase.
How Much Does It Cost to Cash a Money Order?
This depends on where you go.
Free Option: Deposit It
The cheapest method?
Deposit it into your bank account.
Most banks allow you to deposit money orders for free, just like checks. Once it clears, you can use the money with your debit card or withdraw cash.
Cashing It Immediately
If you want cash right away:
-
Your bank may cash it for free (though some only release part of the funds immediately).
-
USPS money orders can be cashed at post offices.
-
Western Union or MoneyGram money orders can often be cashed at their locations.
-
Check-cashing stores may charge $3 to $20.
Example:
If you receive a $900 money order and go to a check-cashing store, you might pay $10 or more just to get your money.
How Money Orders Work (Beginner-Friendly Explanation)
Think of a money order like a prepaid check.
You give the issuer cash (or sometimes a debit card payment). In exchange, they print a paper document that guarantees the money is available. You fill in the recipient’s name, and they can deposit or cash it safely.
Unlike personal checks, money orders can’t bounce.
How to Track a Money Order
To track a money order:
-
Find your receipt.
-
Locate the serial number.
-
Contact the company that issued it (USPS, Western Union, etc.).
-
Ask if it has been cashed.
Without your receipt, tracking becomes much harder and sometimes impossible.
Do Money Orders Expire?
Technically, most money orders don’t expire.
However, some issuers may deduct a small service fee if the money order isn’t cashed after several years (depending on state law).
So it’s best to cash or deposit it as soon as possible.
Please take a look at this as well:
How to Avoid Insufficient Funds (NSF) Fees and Overdraft Charges
