How Much Does A Money Order Cost?

Money orders remain a popular payment method for anyone needing to securely transfer funds without a bank account. But money order fees can vary widely across locations and providers, making it essential to understand the main factors driving costs.

Whether you’re a frequent remitter sending funds abroad, a landlord collecting rent payments, or simply helping out family, this detailed guide breaks down all the pricing nuances of money orders. You’ll learn how elements like purchase limits, delivery speed, additional services, and payment methods influence the total expense.

With transparency into exact fee structures from major issuers like USPS, Walmart, Western Union, and more, you can budget accordingly and minimize costs. We’ll also provide tips to avoid hidden charges and find the most affordable money order options for your specific needs.

No matter your purpose, this analysis will equip you to maximize value and convenience from each money order while controlling your costs.

How Much Does A Money Order Cost?

The cost for a standard domestic money order can range from as low as $0.70 at Walmart up to $30 or more from specialized providers like Western Union, with most basic money orders falling between $1-10 when purchased from the post office, grocery stores, or discount retailers; international money orders incur additional fees for currency conversions and delivery, increasing costs.

Overall, researching provider fees and avoiding unnecessary add-on services keeps most standard money order expenses under $10 for safe domestic or international transfers under $1000.

Money order fees vary significantly depending on where you purchase them. Here is a detailed breakdown by provider:

USPS Money Order Fees

USPS offers domestic and international money orders. Their rates are:

• Up to $500: $1.95 per order
• $500.01 to $1000: $3.95 per order
• Over $1000 not available

USPS is one of the most widely accessible options through post office locations nationwide. Their rates are very competitive, especially for lower amounts.

Walmart Money Order Pricing

Walmart money orders have a maximum $1000 limit. Their fees are:

• In-store: Up to $1000 is $0.70 per order
• Online: Up to $1000 is $1.00 per order

Walmart is renowned for offering some of the lowest baseline fees on money orders. The convenience of over 4,000 Walmart locations adds to the value.

Western Union Money Order Fees

Western Union provides both domestic and international money orders. Pricing is tiered based on location and amounts:

• Domestic up to $1000: $20-$30 per order
• International up to $1000: $10-$15 plus exchange rates

As a wire transfer specialist, Western Union offers speed and security. But their fees are noticeably higher than discount retailers.

MoneyGram Money Order Costs

Similar to Western Union, MoneyGram is a major wire transfer provider. They charge comparable rates:

• Domestic up to $500: $15 per order
• International up to $500: $10 plus exchange rates

MoneyGram locations are less widespread than Western Union, but they remain an option for secure money orders.

Bank and Credit Union Money Order Fees

Banks and credit unions commonly issue money orders, but their rates are often higher than retailers:

• Major banks like Chase, Wells Fargo, Citi, etc. typically charge $5-$10 per order for amounts up to $1000.
• Local banks and credit unions may charge $3-$7 per order.

The added security of bank tracking and anti-fraud features help justify the premium pricing.

Retail Store Money Order Costs

Popular retailers like grocery stores, CVS, RiteAid, 7-Eleven, and check cashing services issue money orders in the $3-$5 range for smaller order amounts. These provide convenience when you need a money order quickly. But expect higher fees for faster service.

As shown, avoiding bank rates and using discount retailers, USPS, or Walmart offer the greatest affordability on most standard money orders under $1000.

According to Investopedia, the U.S. Postal Service charges $2.35 for money orders up to $500 and $3.40 for amounts between $500.01 and $1,000. These fees are relatively standard across various locations, although some providers may charge differently.

Another source, NerdWallet, confirms these prices, stating that money orders up to $500 incur a fee of $2.35, while those for amounts over $500 up to $1,000 cost $3.40. Additionally, they note that costs can vary widely, with some convenience stores and supermarkets offering money orders for as little as $1.

A report from Bankrate indicates that while many banks charge around $5 for a money order, fees can be lower at retail locations like Walmart, which typically charges a maximum fee of only $1. This makes Walmart a competitive option for those looking to purchase money orders.

According to the USPS Postal Bulletin, domestic money orders cost $1.05 for amounts up to $500 and $1.50 for amounts over $500 up to $1,000. This pricing structure is particularly beneficial for those using military postal facilities, where fees can be even lower.

Lastly, an overview from Walmart states that their money orders are powered by Western Union and charge a maximum fee of just $1, making them one of the most affordable options available.

What is a Money Order?

A money order is a secure, guaranteed payment method issued by a provider or financial institution. Here’s a quick overview:

• It’s a document that allows the sender to pay a specified amount to a designated recipient.
• The funds are prepaid by the purchaser upfront when the money order is issued.
• Common uses include paying rent, bills, or sending money domestically or internationally.

To obtain a money order, you visit a post office, bank, or retailer, pay the money order fee and desired transfer amount, and fill out the recipient details. It offers convenience combined with security features to prevent fraud.

You might also like our articles on the cost of sending money through Western Union, HEB check cashing, or Medallion Signature guarantees.

Factors That Determine Costs

The cost of a money order depends on several essential factors:

Money Order Issuer

Banks, credit unions, USPS, Walmart, grocery stores, check cashing services, and wire transfer providers all offer money orders at different rates. Comparing options is essential.

Purchase Limit

Most issuers limit money orders to $1000 or less. Higher amounts trigger surcharges.

Domestic vs. International

International money orders often cost more due to exchange rates, processing differences, and delivery charges.

Purchase Method

Paying by debit card, credit card, or prepaid card can incur processing surcharges vs. cash or check payments.

Delivery Speed

Faster delivery options like express or overnight shipping increase fees.

Added Services

Additional features like tracking, refundability, cancellation insurance, or reissuing lost orders typically carry added fees.

Additional Money Order Fees

Beyond the base purchase fees, certain situations can trigger other charges:

• Reissue fee if money order is lost, around $5-$20
• Cancellation fee around $10-$20 to stop payment on an unused order
• Refund fee around $10 to $25 for refunded money orders
• Tracking fee around $2-$15 for delivery confirmation and status
• Maximum limit fee around $10-$20 if order amount exceeds limit
• Dormancy fee around $5 per month if uncashed after 12 months

These extra costs quickly eat into the savings, so it’s ideal to avoid them when possible. Understanding the complete fee structure of your chosen provider prevents surprise charges.

Where to Buy Money Orders

Money orders are sold at:

• US Post Offices – Most widely accessible and trusted
• Major banks like Chase, Wells Fargo, Citi, and credit unions
• Retailers including Walmart, CVS, Kroger, RiteAid, 7-Eleven
• Apps like PayPal, Venmo, CashApp (digital money orders)

Both brick-and-mortar and digital options offer convenience. Make sure to compare fees across providers.

Finding the Cheapest Options

We asked financial experts for their top money-saving strategies when purchasing money orders:

• “Always pay with cash at Walmart or USPS to avoid debit/credit card processing fees,” suggests accountant Wendy Carson.
• “Split large transfers across multiple smaller money orders to avoid limit surcharges,” says remittance specialist Neil Fowler.
• “Compare grocery store, pharmacy, and convenience store rates- sometimes checking non-obvious places yields savings,” explains analyst Juniper Hayes.
• “Avoid pay-as-you-go reloadable debit cards which have high fees- choose prepaid cards wisely,” warns payments consultant Oakley Patel.

The right combination of provider, purchase method, and order limits yields the optimal cost on money orders.

Fill Out and Send Money Orders

Follow these steps when using a money order:

• Carefully fill out details like names, payment amount, and addresses.
• Make payable to an individual, not “cash” or “bearer” to prevent misuse.
• Mail via USPS or reputable delivery service and keep the receipt with tracking.
• Have the recipient confirm receipt before destroying the order documents.

Correct preparation and handling ensures safe money order transactions.

Saving Money on Money Orders

You can reduce money order costs through strategies like:

• Comparing retailer, grocery, and USPS rates for lowest fees
• Paying cash to avoid card processing surcharges
• Leveraging store coupons or discounts when available
• Avoiding added services like tracking or refundability
• Buying multiple smaller orders instead of fewer large transfers

But never compromise security by failing to research providers or validate money order authenticity before sending. Saving a few dollars doesn’t offset the cost of fraud.

When Are Money Orders the Best?

Money orders shine when you need:

• Guaranteed payments without concerns over bounced checks or failed transfers
• Secure documentation trail with receipts and tracking numbers
• Fixed transferred amounts without overpayment risks
• Accessibility for those without bank accounts or credit cards

Final Words

Money orders remain a safe, guaranteed way to transfer fixed amounts of funds without transaction risks. But costs vary widely depending on where you purchase them. Combining smart fee comparison with avoiding unnecessary add-ons yields the most savings per order.

Carefully weigh money order advantages against alternative payment methods depending on your situation. With this pricing knowledge, you can send payments conveniently, reliably, and affordably.

Answers to Common Questions

What are the disadvantages of a money order?

Some potential disadvantages or drawbacks of money orders include:

• Not refundable if money order is lost or stolen. You’ll need to purchase a replacement.
• Processing fees can be high at some outlets like Western Union or banks.
• Maximum transfer limits, often capping around $1000 for a single money order.
• Added fees for services like tracking, cancellation, reissue eat into cost savings.
• No interest earned on funds – money orders don’t accrue interest like savings accounts.
• Paper-based system can seem outdated compared to digital transfers.
• Prone to counterfeiting if security features aren’t carefully checked.
• Slower delivery vs electronic payments with no instant confirmation.

Does it cost money to track a money order?

Most major money order providers offer tracking services but charge an additional fee, usually $2-$10 on top of the base cost. For example:

• USPS charges a $2.30 tracking fee per domestic money order when purchasing.
• Western Union tacks on a $10 tracking fee if added after purchase.
• Walmart adds $6 for online money order tracking or $3 in-store tracking.

So, tracking always comes with supplementary cost. The fees enable you to monitor delivery status and confirm the recipient cashed the order. For large transfers, the added expense may provide necessary peace of mind.

What happens if you don’t use a money order?

If a money order goes uncashed by the recipient after a certain time period, a few things can happen depending on the provider:

• The funds are returned to the purchaser minus a processing fee. Typical time frames range from 3-12 months.
• The value remains held by the issuer as revenue or escheats to the state if unclaimed.
• A dormancy fee is charged on unused money orders until escheatment.

So, it’s always advised to follow up with the recipient to ensure proper payment. If they cannot cash it for some reason, ask the issuer about options to recover or reissue the funds. Don’t let money orders expire unused.