Picture this: you’re going through a junk drawer when you find a money order you never cashed. Maybe a gift from a relative or a refund from a business you forgot all about. Depending how old that money order is, you may find yourself wondering if you can still cash it, and if money orders expire.
The rules around money order expiration dates can be confusing, and sometimes they vary according to who issued them. But Remitly is here to help. In this article, we’ll explain typical money order expiration timeframes, what happens when a money order expires, and what you should do if you find an old money order.
What are money orders and how do they work?
Money orders are a safe method of transferring money. The idea goes back centuries, but the modern history of the money order begins in the UK around 1838, when the Post Office took over the money order system and standardized it across the country.
A money order works like this:
A person goes to a bank, post office, or other business that sells money orders. They pay the full amount upfront, in cash or with a debit card. They also pay a fee to cover the cost of the money order itself.
The business will then print out a money order in the amount requested, and the customer can send that money order to whomever they want.
The idea behind a money order is that it is prepaid, so unlike a personal check, it can’t bounce. For that reason, they are considered safer than checks, as the money has already been paid. Money orders are often required for secure transactions, including rent deposits, because of this security.
Another difference between a personal check and a money order is the expiration. Most checks expire after six months, although some banks will cash a check that is older than that, within reason.
Money orders, on the other hand, typically don’t have an expiration date. In theory, a money order could stay valid for years.
In practice, though, things are a little bit different, and the rules vary according to who issued the money order and where.
Let’s take a look at some examples.
Do money orders expire?
Usually, money orders don’t expire, but that doesn’t mean you can hold onto them forever.
Different issuers set different rules for their money orders, so some will have an expiration date, often of a year or more.
Other issuers don’t have an expiration date, but the money order can become subject to dormancy fees. These fees gradually reduce the value of the money order until it is cashed.
For example, the issuer might start charging a two-dollar-a-month fee after the money order is a year old. If the holder tries to cash an $100 money order after 12 months have passed, they may only get $98, instead of the full amount.
This means, if you leave a money order uncashed long enough, its value might end up at zero.
What happens to expired money orders?
Expired money orders may be subject to a process called escheatment. This basically makes the money order unclaimed property. Generally, that makes them the property of the state in which the money order was issued, and any claim on that money order will need to go through the state’s unclaimed property process.
Once the state has claimed a money order, that doesn’t necessarily mean money is gone. You may still be able to make a claim through the state’s lost property process. However, there are often fees involved, so if the money order isn’t particularly valuable, it may not be worth it.
You can find out the rules for your state by checking the relevant government website.
Money order expiration rules by major issuers
It’s important to check the rules for different money order issuers. This is because they all do things a little bit differently, so it’s worth knowing the rules in advance.
USPS money orders
Officially, USPS money orders never expire. A USPS money order can be cashed at any branch of the post office at any time, without fees.
That doesn’t mean the money orders are good forever, though. Different states have different dormancy laws, ranging from 3 to 7 years, so if a money order is older than this, the state may apply dormancy fees to your money order.
Western Union money orders
Like with USPS, Western Union money orders do not have an expiration date. However, some institutions may charge fees for cashing older money orders.
In some states, you may have to pay a service charge if you don’t cash the money order within one to three years of the purchase date.
Bank-issued money orders
Every bank handles money orders a little differently, so it can be tricky to know exactly what the rules are.
Here are the rules for some major US banks around money order validity periods:
- Wells Fargo: Does not have an expiry on money orders, but outstanding money orders are subject to state unclaimed property laws.
- Chase Bank: Chase does not have expiry dates or impose fees on money orders, but money orders are subject to the state’s unclaimed property laws.
- Citibank: Citibank also does not charge dormancy fees on its money orders.
Note that just because a bank doesn’t charge dormancy fees doesn’t mean that the place you go to cash the money order won’t. Some banks and other institutions will charge fees on money orders that are older than one year, especially if the money order wasn’t issued by them in the first place.
Other major issuers
- Moneygram: MoneyGram money orders don’t expire. However, after a year, they become subject to a monthly service charge that will reduce the money order’s value. This service charge varies, and is written on the back of the money order.
- 7-Eleven: 7-Eleven charges different fees for money orders from one store to another, and that includes service fees for dormant money orders. Ask to see the fine print before you buy your money order so you know what you’re getting into.
- Wal-Mart: Walmart issues money orders through either Western Union or Moneygram. That means that money orders are subject to the same rules as those providers, so make sure you know which provider they are using.
How to cash an old money order
Just because a money order is old doesn’t mean it’s worthless. Here’s what to do if you find a money order you haven’t cashed yet:
- Check for an issue date
The rules around cashing a money order change according to how long it’s been since it was issued. For example, if it was issued in the last year, you probably won’t have any problems cashing it, but if it is several years old, things get more complicated.
- Identify the issuer
If it’s a USPS money order, the best place to take it is a branch of the Postal Service. These money orders never expire or lose value, so as long as it hasn’t been declared unclaimed property by the state, you’re good to go.
If it’s issued by a bank, take it to a branch of the issuing bank, as they are less likely to impose fees.
For Western Union and MoneyGram, you can take the money order to any authorized location, but you are more likely to incur fees.
- Bring documentation
As well as the original money order, you should bring a valid photo ID. If the money order was not originally addressed to you, you may also need proof of entitlement to the funds. So, for example, if the money order was for a family member who has died, you will need to prove that relationship and your right to inherit their property.
- If the issuer is out of business
If you find a money order issued by a company that no longer exists, the best thing to do is to contact your state’s unclaimed property office. There’s a good chance the state may have claimed the funds, and if you can prove that they belong to you, you may get them back, minus fees.
What if your money order is lost or stolen?
Money orders are intended to be a safe alternative to cash, but they can be lost or stolen. Most issuers have a replacement process to follow if you lose a money order.
- USPS: File a PS Form 6401 at any post office. They can track the money order and issue a replacement if it hasn’t been cashed. There is a $21 processing fee.
- Western Union: Complete a Money Order Refund Request online or by mail.
- Moneygram: Submit a Money Order Claim Card, along with a photocopy of the receipt.
- Banks: Visit a branch with your receipt, and they can guide you through the replacement process.
Fees and timeframes
The fees for a lost money order vary a lot according to the issuer, but could be anywhere from $6 to over $20. For most providers, you can expect a wait of 30 days or more to replace a money order.
Tips to stay secure
- Keep the receipt separate from the money order until it is cashed.
- Fill in the payee’s name immediately to make it harder for someone else to cash it.
- Mail money orders securely so that they don’t get lost in the post.
Money order alternatives that don’t expire
Money orders offer a safer way to send money than putting cash in the mail. However, they still suffer from some of the problems of cash, such as the ability to be lost, stolen, or damaged. Also, unlike cash, they can expire and be subject to dormancy fees.
Luckily, these days there are several alternatives that let you send money securely, quickly, and affordably.
1. Wire transfers
Wire transfers allow you to send money directly from one bank account to another. This can take days, a few hours, or sometimes minutes. They are fast, traceable, and won’t get lost or damaged.
2. Digital money transfer services
Apps and online platforms like Remitly offer the easiest, fastest, and often cheapest way to send money that won’t expire or get lost. This is the easiest way to send money abroad, as you can do it from your phone and have the money arrive instantly in the other person’s account.
3. Cashier’s checks and certified checks
These are issued by banks and are backed by the bank’s own funds, similar to a money order. They are very secure and are widely accepted, and they offer high-value payments for large transactions. However, they can be expensive, and they require you to visit a branch in person.
Which option to choose?
- If you need a lot of money sent in a hurry, a wire transfer is the way to go.
- Digital transfer services are great for quick, easy international transfers, with low fees and great exchange rates.
- Cashier’s checks are best used when you are making a big purchase and need it tracked every step of the way.
Keep your money orders valid and secure
Money orders have been around a long time, but they are still a safe and secure way of sending money. Still, they have their limits. Although they don’t expire, dormancy and escheatment rules put a limit on how long a money order is good for.
The best way to use these tools is to deposit the money as soon as possible. If you do find an old money order, check the issuer’s policies and look into your state’s unclaimed property processes to recover the funds.
These days, electronic transfers offer a faster, more secure, and more convenient alternative to the money order. When you want to send money, whether down the street or across the world, a digital service is often the best way to go.
FAQ
How long are money orders good for?
Generally, money orders don’t expire. But they may be subject to service fees once they are more than a year old or, after 5 to 7 years, being seized by the state.
Can I get a refund for an unused money order?
Sometimes. For example, USPS doesn’t offer refunds, but they may be able to change the payee of a money order to your name so that you can cash it yourself. Western Union and Moneygram also have a procedure to follow to get a refund on an uncashed money order.
What should I do if I lost the receipt for my money order?
If you lose a receipt for a money order, you may still be able to get the funds back. Contact the issuer immediately and provide as many details as you can.
Are there fees for cashing old money orders?
Sometimes. It’s worth checking the rules for the individual bank or issuer.