In the world of modern finance, technology, and innovation have seemingly dominated the market. With digital options and different forms of traditional payment and management services, the opportunities and alternatives are endless. Yet, let’s observe a forgotten payment opportunity a little more and answer: How long do money orders last?
Money orders are a payment method that is similar to a check but also very different. Additionally, there are key differences between it and other forms of payment, like cash. Specifically, there are security and other benefits to opting for the overlooked payment method. Not to mention, a host of financial institutions and retail locations do aid in easier access
However, because it has seemingly fallen out of favor in recent years, the logistics behind this form of payment have been forgotten. So, let’s explore potential expiration dates for money orders and a few other key factors that you will have to remember when using this payment method.
Understanding Money Orders
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Before we discuss how long money orders last, let’s explore a little bit more information on the payment method. This form of payment can be used in a variety of circumstances, and it works similar to a traditional check. However, there are some stark differences between the two options.
Similar to a check or even cash, a money order can be used to pay any sort of individual or company. Moreover, like checks, the recipient of the money order can do one of two things with the order. First, they can cash it and receive the funds in the form of cash. Alternatively, they can deposit it into a bank account.
Conversely, there are specified aspects that make this form of payment different from a traditional check. Firstly, these orders are prepaid, which is the primary difference between the two. This means that they provide less risk than traditional checks, as they are far less likely to bounce.
How Do They Work and How Much Do They Cost?
Also Read: Does Dollar General Do Money Orders?
Now, let’s delve a little bit more into how money orders work and how much it would cost an individual to use one. Firstly, it is important to mention that the logistics and limits on these forms of payment can vary.
Indeed, one bank could charge a certain amount, while the other differs greatly. Furthermore, these money orders are typically worth approximately $1000 when they are purchased. Moreover, they tend to come with a small fee for the purchaser.
These can be purchased with cash, a debit card, and some variations of travel checks, depending on where you purchase them. However, you are unable to purchase the money order with a credit card. Specifically, this is what helps maintain the security of the process. However, some merchants do allow these kinds of purchases, only with higher fees included.
Once the order is placed, you are then able to fill it out with the desired recipient and the amount intended to be given to them. Then the order can be sent at your discretion, and from there, it would operate akin to a traditional check.
How Long Do They Last?
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Now, let’s explore how long money orders last and if they have an expiration date. Generally, money orders do not have expiration dates, which means they should be able to last until they are cashed by the recipients. However, there may be fees attached to those that remain uncashed for a certain amount of time.
These fees can vary depending on what financial institution you sell or cash the money order from. Typically, these kinds of fees will only begin to accrue when they go uncashed for more than a year. Although the fee amounts may vary, someone like Western Union will charge $2 per month after the first 12 months if they stay uncashed.
Conversely, the US Postal Service is an exception to these kinds of rules. Indeed, they will honor money orders no matter the time that they have been written. They will never expire, and their value will never be affected. The postal service will cash these documents regardless of their age.
Where to Get Money Orders?
Also Read: Does CVS do Money Orders?
Now that we know a bit more about these payment options, let’s explore where to get them issued. Although they have certainly lost popularity in recent years, there are still plenty of locations and institutions that offer the cashing and sale of them.
Among those are companies like Amscot, MoneyGram, the US Postal Service, and Western Union. However, the latter of those provides a rather key aspect of such an offering. Specifically, Western Union has partnered with several retail locations to help sell money orders.
What that means is that Western Union money orders are available to be sold at stores like Dollar General or Walgreens. These partnerships present ease of access for those attempting to utilize the payment method.