An alternative to personal checks, credit cards, and cash, money orders are a great payment option. Like a check, the person you send a money order to needs to cash it.
If you’ve stumbled across an old money order you lost or forgot to cash, you might be wondering whether it’s still worth anything. In other words, do money orders expire?
In short, money orders don’t have expiration dates. But before you run to cash an old money order, there are some things to consider.
What’s the difference between a check and a money order?
Unlike a personal check, money orders are guaranteed funds. A personal check is tied to a bank account, and the check can bounce if there isn’t enough money in the account when it’s cashed.
Money orders, on the other hand, can’t bounce. That’s because the sender prepays for the money order. They’re also more secure since they don’t contain the sender’s bank account information. That said, you’ll still need to include your name and address when filling out a money order.
Where checks and money orders are similar, however, is in the fact they generally don’t expire if the recipient doesn’t cash them right away. It’s not always that cut and dry, though. Caveats do apply.
Can a check expire?
Personal checks generally do not have an expiration date. However, some banks may not honor checks older than six months to a year. Additionally, the recipient runs the risk that the funds may no longer be available after such a lengthy period of time. And that would cause the check to bounce.
Does a money order expire?
Money orders also typically don’t expire. Since they’re prepaid, the recipient can be confident they’ll still receive their cash.
However, the issuer may apply fees over time, which can reduce the money order’s value. For example, an issuer may charge a $2-per-month service fee each month for money orders older than one year. In this scenario, if you send or receive a money order for $100 that is cashed in month 14, the recipient will get only $96 due to the fees for two months.
If your money order is lost or stolen, the issuer may charge a fee to replace it. You can typically only replace money orders that have not yet been cashed.
Where and how can I get a money order?
You can purchase a money order from many locations, including banks or credit unions, post offices, some retailers, and money service providers, including Western Union agent locations.
To purchase a money order, you’ll typically need a valid ID and payment for the money order. Payment methods include cash, a debit card, or a traveler’s check. You’ll also need information about the recipient, such as their full legal name and sometimes address. Most issuers charge a fee to purchase a money order (typically $5 or less), so be prepared to pay for that as well.
Because a money order can’t expire, they’re a great alternative to a personal check. If your recipient cashes a personal check months later, it could hit your bank account at a bad time. You don’t need to worry about a money order being cashed months later since you’ve already paid for it.
What to do with old money orders
If you’re holding on to an old money order, you can usually cash it. The exception would be if the original purchaser has reported the money order lost or stolen. If that’s the case, the money order may have been canceled. You would need to go back to the issuer and request a new money order.
However, outside of those situations, you can still cash it since money orders don’t expire. It’s best to cash an old money order at the issuing institution since it’s ultimately responsible for honoring and redeeming it. Remember, the issuing institution may charge a fee for old money orders, so you might receive an amount less than the full value of the money order. You may also need to provide additional documentation.
In some states, unredeemed money orders become unclaimed property. In these instances, by law, they must be turned over to the state after a period of time. You can search your state’s unclaimed property website for instructions on claiming an outstanding older money order.
Send money orders and more with Western Union
With Western Union, you have options for sending money. In addition to purchasing money orders, you can send money quickly and easily online, from the Western Union® app, or at an agent location. Whether you’re sending money to friends and family across town or across the globe, Western Union has you covered.
FAQs
How long is a money order valid for?
Money orders technically do not expire. However, some issuing institutions may charge fees for cashing older money orders. You can usually cash an old money order, so long as the issuer has not canceled it. A money order can usually be canceled if it is reported lost or stolen.
What happens to a money order if it is not cashed?
By law, if money orders are not cashed within a certain time period, they may be turned over to the state as unclaimed property. Unclaimed property laws vary by state.
How long before Western Union money orders expire?
Western Union® money orders do not have an expiration date. However, depending on the state, you may pay a non-refundable service charge if you do not cash the money order within one to three years of the purchase date. The service charge will reduce the amount you receive.
