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- Contact the issuer to understand their procedures for returned money orders.
- Identify the financial institution that issued the money order.
- Provide necessary documentation like purchase receipts and proof of return.
- Cash the money order at the issuer’s bank or financial institution.
- Some banks and check-cashing stores may also cash returned money orders.
- Endorse the money order with your signature and the phrase “Not used for purpose intended.”
- Deposit the returned money order into your bank account using an endorsed money order.
- Allow a few days for the money order to clear before accessing funds.
A money order can be an incredibly useful financial tool, offering a secure and straightforward way to send funds. However, if the money order was returned for any reason, you might be left wondering how to access the funds.
In this post, we’ll guide you through the process of how to cash a money order that was returned, explaining the steps and options available to you.
How to Cash a Money Order That Was Returned
Money orders are often used as a safer alternative to personal checks, and they are widely accepted across various financial institutions and retailers. When you receive a returned money order, whether it’s due to an issue with the recipient or a problem with the processing, it can be a bit confusing to figure out what to do next.
Don’t worry – cashing a returned money order is entirely possible, but it’s important to follow the right steps. We’ll show you exactly how to cash a money order that was returned, and break down the different options for doing so.
1. Contact the Issuer
The first step in cashing a returned money order is to determine the issuer of the money order. This is important because the process can vary slightly depending on where the money order was purchased.
Identify the Issuer
Money orders can be issued by different financial institutions, including banks, credit unions, and retail stores. To identify the issuer, look for the name of the institution printed on the money order itself. Common issuers include:
- Western Union
- MoneyGram
- USPS (United States Postal Service)
- Bank or Credit Union
Once you’ve identified the issuer, you’ll need to contact them directly. This could be by phone, email, or in person.
Inquire About Procedures
It’s essential to ask the issuer about their specific policies for handling returned money orders. Some institutions may require you to provide proof that the money order was returned or offer specific steps to process the returned order.
While most institutions have clear procedures, some may request additional documentation, such as the original purchase receipt or details about why the money order was returned. Be prepared to provide this information.
Provide Documentation
Gather any relevant documentation that could help with the process. This includes:
- Original Purchase Receipt: This proves that you purchased the money order.
- Proof of Return: If the money order was returned due to an issue with the recipient or any other reason, having documentation of this will support your case.
- Identification: Be ready to show proof of identity, such as a driver’s license, as many institutions require this for processing financial transactions.
2. Cashing the Money Order
Once you have all the necessary information and documentation, you can explore the different options for cashing the returned money order.
At the Issuer
The easiest way to cash a returned money order is usually by going back to the financial institution that originally issued it. This is because they have the records of the transaction and are most familiar with their own policies.
To cash a returned money order at the issuer, follow these steps:
- Visit the Issuer’s Location: You may need to go to a branch of the bank, credit union, or other financial institution where the money order was purchased.
- Provide Documentation: Present any supporting documents, including identification and proof of the return.
- Endorse the Money Order: In some cases, you will need to sign the back of the money order, possibly writing “Not used for purpose intended.” This is a standard practice when cashing returned money orders.
At Other Banks
If you don’t want to go back to the issuer, you might be able to cash the returned money order at a different bank. However, be aware that not all banks will cash money orders, especially if they were issued by a different institution.
Before you go, contact the bank and ask if they will cash a returned money order from another institution. If they agree, follow the same process as above by endorsing the money order and providing any necessary documentation.
At Check-Cashing Stores
Another option is to visit a check-cashing store. These businesses specialize in cashing various types of financial instruments, including money orders. Keep in mind that they might charge a fee for their services, and the fees can vary depending on the store.
Check with the store in advance to confirm that they can process your returned money order. You will also need to endorse the back of the money order and provide proof of identity.
3. Depositing the Money Order
If you prefer to deposit the returned money order into your bank account rather than cashing it, you can do so as well. This method is particularly useful if you don’t need immediate access to the funds but still want to process the money order.
Endorsement
To deposit a returned money order into your account, you’ll need to endorse the back of the money order. Here’s what you should write:
- Your Signature: Write your name as it appears on the money order.
- “Not used for purpose intended”: This phrase lets the bank know that the money order wasn’t used for its original intended purpose and is being processed as a returned item.
This endorsement is a standard requirement when depositing a returned money order, as it shows the bank that the money order is being handled correctly.
Deposit at the Bank
Once the money order is endorsed, you can take it to your bank for deposit. You have a few options for how to deposit it:
- In Person: Visit your bank’s branch, fill out a deposit slip, and hand the money order to the teller.
- ATM Deposit: Many banks allow you to deposit money orders via an ATM. Simply follow the instructions for depositing checks, and ensure you insert the endorsed money order.
Waiting Period
After depositing the money order, be prepared for a waiting period. Money orders are typically processed in a few business days, so you’ll need to allow time for it to clear. Once cleared, you’ll be able to access the funds.
If you have any concerns about the processing time, feel free to check with your bank to see if they can provide an estimate.
Additional Tips for Cashing or Depositing Returned Money Orders
When it comes to cashing or depositing a returned money order, a few tips can make the process smoother:
- Double-Check Fees: Whether you are cashing the money order at a bank, check-cashing store, or another financial institution, ask about any fees that may apply. Some institutions may charge for cashing money orders, while others offer it for free.
- Keep Copies of Documents: It’s always a good idea to keep copies of any documents related to the returned money order, such as the original receipt, the returned money order itself, and any communication you had with the issuer.
- Check for Expiration: While money orders typically don’t expire, it’s essential to confirm that yours hasn’t exceeded the time limit set by the issuer, if any. Some institutions may have policies regarding the length of time after which a money order can no longer be cashed or deposited.
Frequently Asked Questions
Here are some of the related questions people also ask:
How can I cash a returned money order at a bank?
To cash a returned money order at a bank, you need to endorse the back of the money order with your signature and the phrase “Not used for purpose intended,” then present it to the bank along with any necessary documentation.
What do I need to do if I want to deposit a returned money order?
To deposit a returned money order, endorse the back with your signature and the phrase “Not used for purpose intended,” and then either deposit it at the bank in person or use an ATM.
Can I cash a returned money order at any bank?
Not all banks will cash money orders, especially if they were issued by a different institution. It’s best to check with the bank beforehand to confirm they will process it.
What happens if I don’t endorse the returned money order?
If you don’t endorse the returned money order with the appropriate signature and message, the bank or check-cashing store may refuse to process it.
How do I know which institution issued my money order?
Look for the name of the issuer on the money order itself. Common issuers include Western Union, MoneyGram, USPS, and banks or credit unions.
Can I cash a returned money order at a check-cashing store?
Yes, many check-cashing stores will cash returned money orders, but they may charge a fee. Be sure to check with the store in advance.
What documents do I need to cash or deposit a returned money order?
You may need the original purchase receipt, proof of return, identification, and the returned money order itself to cash or deposit it.
Is there a fee for cashing a returned money order?
Some banks and check-cashing stores may charge a fee to cash a returned money order, so it’s a good idea to ask about fees in advance.
How long does it take for a returned money order to clear when deposited?
It typically takes a few business days for a returned money order to clear, though you can check with your bank for a more specific timeframe.
The Bottom Line
Knowing how to cash a money order that was returned is essential for ensuring that you can still access the funds. Whether you choose to go back to the institution that issued the money order, use another bank, or opt for a check-cashing store, make sure to follow the appropriate procedures.
Always contact the issuer to understand their specific policies and gather the necessary documentation. When cashing or depositing the money order, be sure to endorse it correctly with the phrase “Not used for purpose intended” and sign it. This simple step can help avoid any confusion during the process.
By following these straightforward steps, you can easily handle a returned money order and get access to your funds without hassle.