Most banks and credit unions sell money orders to their account holders, and the process takes just a few minutes at a teller window. You’ll typically pay between $5 and $10 per money order, with a maximum value of $1,000 per order. Here’s how the process works from start to finish.
What You Need Before You Go
To buy a money order at your bank, bring three things: a valid government-issued ID, your debit card or enough cash to cover the amount plus the fee, and the exact name of the person or business you’re paying. The teller will pull funds directly from your checking or savings account, or you can pay with cash or a debit transaction. Most banks require you to have an account with them to purchase a money order at their branch.
Know the exact dollar amount before you arrive. Money orders are printed for a specific value, so unlike a personal check, you can’t leave the amount blank and fill it in later. If you’re paying a bill, double-check the total so you don’t end up needing to buy a second order.
The Process at the Teller Window
Walk into your bank branch and tell the teller you’d like to purchase a money order. They’ll ask for the dollar amount and the payee’s name. The teller handles the printing, and you’ll sign the money order before leaving. The whole transaction usually takes less than five minutes.
Once printed, the money order will show the payee name, the dollar amount, and a serial or tracking number. You’ll also receive a receipt, which is the detachable stub or separate slip the teller gives you. Keep this receipt. It’s your only proof of purchase if the money order is lost or stolen, and you’ll need the tracking number on it to trace or cancel the order later.
Fees and Limits
Bank money orders commonly cost between $5 and $10 each. Wells Fargo, for example, charges $5 per money order. That’s higher than what you’d pay at a post office or retail store, where fees can be under $2, but the convenience of having funds pulled straight from your account and dealing with a familiar institution is worth the premium for many people.
The standard limit on a single money order is $1,000. If you need to send more than that, you have two options: buy multiple money orders (each with its own fee) or ask your bank for a cashier’s check instead, which has no upper dollar limit as long as you have the funds available. Cashier’s checks typically cost $5 to $15 at most banks.
Filling Out the Money Order
A money order has a few fields you need to complete correctly. Some banks fill in most of the information for you during the transaction, but if any fields are left blank, here’s what goes where:
- Pay to the order of: Write the full legal name of the person or business you’re paying. Never leave this blank, because anyone who finds a blank money order could fill in their own name and cash it.
- Purchaser/sender: Your full name and address.
- Memo or account number: If you’re paying a bill, write your account number here so the recipient can match the payment to your account.
- Signature: Sign on the purchaser’s line (not the endorsement line on the back, which is for the person cashing it).
Use a pen, not a pencil. Write legibly. If you make a mistake on a money order, it’s generally better to cancel it and buy a new one rather than try to correct it, since altered money orders can be rejected by the recipient.
What to Do if a Money Order Is Lost or Stolen
Contact your bank as soon as you realize the money order is missing. You’ll need to fill out a cancellation request form and provide the purchase date, dollar amount, and the serial or tracking number from your receipt. Attach a copy of the receipt if you have one, then submit the form along with a processing fee.
Expect the process to take a while. Most issuers need 20 to 30 days to investigate, and some cases stretch to six to eight weeks. If the money order hasn’t been cashed yet, you can get a replacement or a refund (minus the processing fee). If someone has already cashed it, you’re unlikely to recover the funds.
This is why keeping your receipt matters. Without the tracking number, tracing a money order becomes much harder and sometimes impossible.
When a Cashier’s Check Makes More Sense
If your payment is over $1,000, a money order won’t work in a single transaction. A cashier’s check is the better tool for large payments like a security deposit, a vehicle purchase, or a real estate closing. Because a cashier’s check is drawn on the bank’s own funds rather than your personal account, it carries more weight with recipients who want a guarantee that the payment won’t bounce. The fee is comparable to a money order, usually under $20, and there’s no cap on the amount as long as your account balance covers it.
For smaller, everyday payments, especially ones you’re mailing, a money order is the simpler and cheaper choice. It’s prepaid, so the recipient knows the funds are good, and the low dollar limit actually reduces risk if the envelope goes astray.
Alternatives if Your Bank Doesn’t Offer Money Orders
Not every bank sells money orders. Some branches only issue cashier’s checks. If that’s your situation, you can buy a money order at several other locations without needing a bank account at all. The U.S. Postal Service, grocery stores, convenience stores, and large retailers all sell them, often for lower fees than banks charge. You’ll pay with cash or a debit card at most of these locations.
The tradeoff is that money orders from retail locations may be slightly less secure than bank-issued ones, since they can be easier to forge. For most routine payments, this distinction rarely matters. But if the recipient specifically requests a bank money order or a cashier’s check, a retail money order won’t satisfy that requirement.