We may earn a commission for purchases through links on our site at no cost to you, Learn more.
Do Banks Make Money Orders?
Money orders are a common, secure payment method used in many everyday transactions. Whether you’re paying for a service, sending money to a loved one, or making a large purchase, you might have heard about money orders but aren’t sure where to get them.
One of the most frequent questions people have is: do banks make money orders? Yes, they do. Banks and credit unions typically offer money orders, alongside other options like the U.S. Postal Service, some retail stores, and check-cashing outlets.
Let’s explore everything you need to know about money orders, where to buy them, how they work, fees, and other key details.
What Are Money Orders?
A money order is a prepaid form of payment, which makes it different from a personal check. When you buy a money order, you pay upfront for the full amount. This prepaid nature makes money orders a safer and more secure alternative to carrying large amounts of cash.
They are often used for payments where the recipient needs a guarantee that the funds are available. Money orders can be a great option when you don’t have access to a checking account, or when you want to ensure that a payment will be accepted, especially for larger transactions.
Where to Buy Money Orders
Now that we know what money orders are, let’s answer the main question: do banks make money orders? Yes, many banks and credit unions offer money orders. However, there are various other places where you can buy them as well. Here’s a breakdown of the common locations where you can find money orders:
1. Banks and Credit Unions
Most banks and credit unions provide money orders, and many of them offer this service to both their customers and non-customers. However, if you’re a customer of the bank or credit union, you may receive a slightly discounted fee.
The process is fairly simple: you go to the bank, tell them the amount you need on the money order, and pay that amount plus any applicable fee. Keep in mind that fees for money orders at banks can vary depending on the institution.
Some large national banks, like Wells Fargo, Chase, or Bank of America, offer money orders, but some smaller local banks may not. It’s a good idea to check with your local branch to confirm availability.
2. U.S. Postal Service
The U.S. Postal Service (USPS) is another common place where you can buy money orders. USPS money orders are often a popular option because their fees are typically lower than those at banks.
For example, as of this writing, the cost for a domestic money order from the USPS is around $1.45 for amounts up to $500, with slightly higher fees for amounts greater than $500. The maximum amount for a USPS money order is $1,000 for domestic transactions.
If you need to send money overseas, the USPS also offers international money orders with different fees and limits.
3. Retail Stores
Some retail stores, including grocery stores, convenience stores, and check-cashing outlets, also sell money orders. These locations tend to offer competitive fees, but they vary from store to store. For example, large chains like Walmart often sell money orders through third-party services like MoneyGram or Western Union.
Depending on the store, you might be able to buy money orders up to $1,000. The convenience of these locations makes them a great choice for individuals looking for quick access to money orders without having to go to a bank.
4. Money Transfer Services
Money transfer services such as Western Union and MoneyGram also sell money orders. These services have a wide reach and often allow people to purchase money orders at various locations.
Western Union, in particular, has a global network, making it easy to send money both domestically and internationally through their money order services. The fees for money orders at these services may vary, but they are typically comparable to those at retail stores. You can visit a local location or use their online tools to buy a money order.
How Money Orders Work
Money orders work similarly to cashier’s checks, and they provide a guaranteed form of payment. Let’s break down how they work step-by-step:
- Purchasing a Money Order: To buy a money order, you will need to pay the full amount upfront, plus any fees. For example, if you’re purchasing a $500 money order and the fee is $1.50, you will pay a total of $501.50. The payment is typically made via cash, debit card, or even a credit card in some cases, depending on the provider.
- Filling Out the Money Order: Once you have your money order, you will need to fill it out. The payee (the person or business receiving the money order) must be written in the “Pay to” section. You will also typically need to provide your name and address in a “From” or “Sender” section. Some money orders may require a memo, similar to what you would write on a personal check, such as an account number or reason for the payment.
- Receiving the Money Order: Once you’ve completed the money order, you can send it to the recipient, either through the mail or by handing it over in person. The recipient can cash or deposit the money order at a bank, credit union, or any location that accepts them. Money orders can be cashed at banks, check-cashing outlets, and some retail locations, though fees may apply for cashing the money order at non-bank locations.
- Security Features: Money orders are often safer than personal checks, and most of them have security features to prevent fraud, such as watermarks, serial numbers, and other forms of verification. These features make money orders less likely to be counterfeited compared to regular checks.
Fees and Costs
The cost of purchasing a money order varies depending on where you buy it. Let’s take a closer look at typical fees for money orders:
- At Banks and Credit Unions: Banks usually charge anywhere from $5 to $10 for a money order. The fees can be higher at larger national banks and may be discounted for account holders. Some credit unions may offer lower fees for their members.
- At the U.S. Postal Service: USPS tends to have lower fees, especially for domestic money orders. As mentioned earlier, the fees range from $1.45 to $2.00, depending on the amount of the money order. International money orders are more expensive, generally ranging between $5 and $10.
- At Retail Stores: Retail stores like Walmart typically charge a fee of around $0.88 to $1.00 for a money order. Some retail stores have a maximum fee that caps at a certain amount, while others charge a percentage of the total money order amount. The advantage of buying at retail stores is convenience, as many are open late or on weekends.
- At Money Transfer Services: Companies like Western Union and MoneyGram often charge a flat fee for money orders, with prices typically ranging from $1.00 to $2.00. Fees can vary depending on the location, and some providers charge more for international money orders.
Maximum Amount of a Money Order
The maximum amount of a money order depends on where you purchase it. Here are some examples:
- U.S. Postal Service: The maximum amount for a domestic USPS money order is $1,000. International money orders have different maximum amounts, and the limits vary by country.
- Banks and Credit Unions: The maximum amount of a money order at a bank or credit union can vary. Some banks allow money orders for amounts up to $1,000, while others may allow higher amounts for an additional fee.
- Retail Stores: Retail locations like Walmart generally have a maximum limit of $1,000 for money orders. However, some stores may allow you to buy multiple money orders to cover a larger amount.
Frequently Asked Questions
Here are some of the related questions people also ask:
Do all banks offer money orders?
No, not all banks offer money orders. While many major banks and credit unions do provide this service, some smaller or local banks may not. It’s best to check with your specific bank to confirm if they offer money orders.
How much does a money order cost at a bank?
The cost of a money order at a bank typically ranges from $5 to $10. However, fees may vary depending on the bank, and customers who have an account with the bank may receive a discount.
Where can I buy money orders besides the bank?
Money orders can also be purchased at the U.S. Postal Service, some grocery stores, convenience stores, check-cashing outlets, and money transfer services like Western Union and MoneyGram.
Can I buy a money order at Walmart?
Yes, Walmart sells money orders through services like MoneyGram. The fee for a money order at Walmart is typically low, usually around $0.88 to $1.00, and the maximum amount is generally $1,000.
What’s the difference between a money order and a cashier’s check?
Both money orders and cashier’s checks are prepaid forms of payment, but a cashier’s check is issued by a bank and typically involves a higher fee. Money orders are often available at retail locations and can be used for smaller amounts, while cashier’s checks are usually used for larger transactions and may require a bank account.
What is the maximum amount I can get for a money order?
The maximum amount for a money order depends on where it is purchased. For example, USPS allows up to $1,000 for domestic money orders. Retail locations like Walmart also have a $1,000 limit. Some banks may allow higher amounts with additional fees.
Can I cash a money order at any bank?
You can cash a money order at most banks, provided you have an account with that bank. Some banks may charge a fee for cashing a money order, while others may offer the service for free to their account holders.
Are money orders safe to use?
Yes, money orders are a safe way to send money. They are prepaid and offer security features, such as watermarks and serial numbers, to reduce the risk of fraud. Unlike personal checks, money orders are guaranteed funds, making them a secure payment method.
Can I use a money order for international payments?
Yes, money orders can be used for international payments. The U.S. Postal Service offers international money orders, and other services like Western Union also allow you to send money orders abroad. Keep in mind that the fees and maximum amounts may vary for international transactions.
The Bottom Line
In summary, do banks make money orders? Yes, banks and credit unions are reliable places to purchase money orders, though you can also find them at other locations such as the U.S. Postal Service, retail stores, and money transfer services like Western Union and MoneyGram.
Money orders offer a secure, prepaid alternative to checks and are commonly used for larger payments or when guaranteed funds are necessary. While fees can vary depending on the provider, USPS tends to offer the most affordable options.
Always check the maximum amount of a money order at your chosen location to ensure it meets your needs. Whether you’re paying bills, sending money to family, or completing a transaction, a money order can be a safe and effective way to send funds.