The complete guide on how to cancel a money order
Have you ever sent a money order to a friend or loved one that ended up being lost or stolen? Did you frantically search for “how to cancel a money order” and wonder if your cash is gone forever?
Most likely you did nothing wrong. But this, unfortunately, happens sometimes, which is why there is a system in place to help senders track and cancel money orders.
If you recently sent a money order and now want to cancel it, or if you’re planning to do so and want to prepare for the worst, this guide covers everything you need to know. We’ll go over what a money order is, how it works, how to cancel one, and some alternative payment methods.
What is a money order?
A money order is like a check, a paper form of payment. This system was established in Great Britain and was later introduced to large American cities by the US Postal Service in 1864. It allowed people to pay bills, buy items from catalogs, and help loved ones who urgently needed money.
The difference between a personal check and a money order is that the latter is a type of guaranteed payment. When the recipient receives a money order and tries to cash it, he cannot bounce, since the sender paid for it in advance.
Money orders are ideal for some people because they can be paid in cash and therefore do not require a bank account. They also do not include the same fees that are charged for wire transfers . But they still have a cost.
Although money order requirements vary by financial institution, in most cases you will need the following:
- payment amount
- name and address of the recipient
- name and address of the sender
- purpose of payment
- form of payment (such as debit card, cash, or check)
How to cancel a money order
If you currently need to cancel a money order you’ve already sent, don’t panic. There are systems that ensure that you will not lose the money you sent. You may have to pay a cancellation fee and process a replacement, but this is often the option people prefer over losing all the money they sent.
Since a money order can be purchased in multiple parts, your first step should be to contact or visit your chosen issuing provider. For example, the United States Postal Service, USPS (United States Postal Service), or a financial institution such as Chase, Bank of America, Wells Fargo, or other banks.
It can also be a payday loan store or a retailer, such as a supermarket or a pharmacy.
As long as the money order hasn’t been cashed, you may be able to cancel it for a fee.
Here are the steps you need to take to ensure the smoothest possible cancellation process.
- Step one: contact the issuer. For example, if it was a postal service, visit the post office and fill out a cancellation request form. The purpose of this is to stop the payment. In some cases, you can submit your application by email, fax or postal mail. This option is also possible when Western Union is the issuer.
- Step Two: Prepare yourself with all the relevant details. When did you purchase the money order, where, and for what dollar amount? You may also need to include the recipient’s name, address, and a brief description of the lost money order, including how you paid for it.
- Step Three: If you have the receipt, attach it to the form. This represents a more specific source of information, which will make it easier to confirm the status of your money order.
- Step Four: Submit the request to cancel the money order and pay the fee.
Money order cancellation fees
The cancellation fee will depend on the issuer.
At this time, the US Postal Service’s cancellation/replacement fee is $6.25 if the money order was sent domestically and $9 if it was sent internationally.
Other providers, such as MoneyGram, currently charge an $18 cancellation fee. Western Union charges $15 to cancel a money order. However, if you don’t have your receipt, this fee increases to $30, and the processing time increases to approximately 6-8 weeks. At this point, you can decide if you want to send a new money order or get a refund.
What if the money order has already been cashed?
Unfortunately, there are cases where money orders are cashed fraudulently. If this happens, it may not be possible to get your money back. However, you can get the police involved by filing a police report.
More information about money transfer apps
If you regularly send money to your loved ones back home, your only option is no longer to send money orders, even if you don’t have a traditional bank account. Depending on the country, you can choose cash payment, bank deposit, mobile money, or home delivery.
Remitly makes international money transfers faster, easier, more transparent, and cheaper. Our reliable and easy-to-use mobile app is trusted by over 5 million people around the world. Visit our home page or download our app for more information.
This publication is provided for general information purposes only and is not intended to be all-inclusive of all topics covered in it. This publication is not a substitute for seeking the advice of an applicable specialist or professional. The content of this publication does not constitute legal, tax or other advice by Remitly or any of its affiliates and should not be relied upon as such. Although we strive to keep our postings current and accurate, we cannot make any representations, warranties, or guarantees that the content is accurate, complete, or up-to-date.