A Guide to Postal Orders: How to Send, Track, and Cancel Them

Have you ever sent a friend or loved one a postal order, only for it to get lost or stolen? Did you frantically search for ways to cancel a postal order and wonder if your money was gone for good? Chances are, you followed the correct process. But unfortunately, issues like this can happen, which is why there are systems in place to help senders track and cancel their postal orders.

If you’ve recently sent a postal order and now need to cancel it, or if you’re planning to and want to be prepared for the worst, this guide covers everything you need to know. We’ll explain what a postal order is, how it works, how to cancel one, and some alternative payment methods.

What Is a Postal Order?

Like a cheque, a postal order is a paper-based form of payment. The system was first established in the UK in 1838 by the Royal Mail to enable people to send money securely by post. It remains a popular method for those without access to a bank account or for specific types of payments.

How Are Postal Orders Different from Cheques?

The main difference between a cheque and a postal order is that the latter is a guaranteed form of payment. When the recipient receives a postal order, it won’t bounce because the sender has already paid for it in advance.

Benefits of Postal Orders

Postal orders are a good option for those who don’t have a bank account or who want to send money securely without using an electronic method. They are also free from the additional fees often associated with wire transfers. However, postal orders typically involve a small issuing fee.

Where Can You Purchase Postal Orders?

In the UK, postal orders are issued by the Royal Mail. You can purchase them at most post offices. Fees depend on the amount you wish to send, so it’s worth checking the Royal Mail’s website for up-to-date information on costs.

How Do You Purchase Postal Orders?

To buy a postal order, you will need:

• The payment amount.
• The recipient’s name.
• Your own name and address.
• The form of payment (cash or debit card).

How to Cancel a Postal Order

If you find yourself needing to cancel a postal order, don’t worry. While it can be frustrating, there are procedures to protect your money. The ability to cancel will depend on whether the postal order has been cashed. If it hasn’t, you can usually request a cancellation and replacement for a fee.

Steps to Cancel a Postal Order

Step 1: Contact the Issuer

Visit your local post office and fill out a cancellation request form. The aim is to stop payment before the postal order is cashed.

Step 2: Provide Relevant Details

You’ll need the following information:

• When and where you purchased the postal order.
• The amount.
• The recipient’s name.
• Proof of payment or your receipt.

Step 3: Submit the Request and Pay the Fee

Submit the cancellation request form along with any required documentation and pay the applicable fee. The Royal Mail’s website lists the current fees for cancellations and replacements.

What Happens If the Postal Order Has Been Cashed?

If a postal order has already been cashed fraudulently, recovering the money can be challenging. However, you can report the theft to the Royal Mail and to local law enforcement. Make sure to retain any supporting documents, such as the receipt and a photocopy of the postal order, as these will aid your case.

Tips for Using Postal Orders Safely

To minimise risks and ensure a smooth transaction, follow these tips:

• Double-Check Details: Before leaving the post office, ensure all the details on the postal order are accurate. Correct any mistakes immediately.
• Fill Out the Recipient Line Promptly: Completing the “pay to the order of” line as soon as you purchase the postal order makes it harder for someone else to cash it.
• Keep a Record: Save the receipt and take a photo or photocopy of the postal order for your records.
• Understand Refund Policies: Familiarise yourself with the Royal Mail’s cancellation and refund policies before purchasing.
• Shop Around for Alternatives: If you frequently send money, consider alternatives like bank transfers or secure payment apps for convenience.

FAQs About Postal Orders

Will the Royal Mail Replace Postal Orders for Free?

In most cases, you’ll need to pay a fee for a replacement. However, if the postal order is defective or damaged, you may be eligible for a free replacement.

What Should You Do If Someone Fraudulently Cashes a Postal Order?

Report the fraud to your local police station and inform the Royal Mail. Be prepared to provide information such as the serial number and purchase receipt.

Can You Cash a Postal Order at Any Bank?

Yes, many banks in the UK will cash postal orders. You’ll need to provide valid photo ID and endorse the postal order by signing the back.