Money Order Cost

Tap to Read ➤ Other than convenience, if something contributes to popularity of money order system, it is the cost. The United States Postal Service issues money orders for a transaction fee of US$1.25. Abhijit Naik

The money order system was introduced by a private firm in Great Britain in 1792 and therefore, its cost was quite high. Over the period, public institutions like the postal services took over, and the cost was slashed by a significant extent. This, in turn, added to its popularity.

One of the most convenient tools of money transfer -- money order is basically a written order for the payment of a stipulated sum of money to a particular individual; a prepaid check which can be cashed at any post office, or a bank.

How Much Does a Money Order Cost?

In the US, a money order can be bought from third-party sources, like the post office, or a grocery store. It can be bought by cash, debit card payment, and cashed at any post office in the country. Usually the cost of a money order depends on the total sum to be transferred and the type of money order you want to send (domestic or international).

The maximum amount of money that can be transferred by a single money order is US$1,000, but separate money orders amounting to more than US$1,000 can be sent in a single day to cover your financial need. If the total amount to be transferred exceeds US$3,000, a current government-issued identification with a photograph of the sender is required.

A processing fee of US$1.25 is charged if the amount one intends to send falls between US$0.01 to US$500.00 and US$1.75 if the amount is anywhere between US$500.01 to US$1,000.00. In case of postal military money orders, which are issued by military facilities, the fee is as little as US$0.45 .

As for international money orders, the maximum amount of money that can be transferred by a single money order is US$700. In this case, the processing fee is US$10.25 per money order, and the maximum amount that can be transferred in a single day is US$10,000.

The United States Postal Service provides the facility of sending money orders to following countries across the world. These include Albania and Anguilla Antigua and Barbuda Bahamas Barbados Belize

Bolivia British Virgin Islands Canada Cape Verde Dominica Dominican Republic Ecuador El Salvador Grenada Guinea Guyana

Honduras Jamaica Japan and Mexico Mali Montserrat Peru Saint Christopher and Nevis Saint Lucia Saint Vincent and the Grenadines Sierra Leone Trinidad and Tobago

International money orders can be cashed at banks and post offices in any of the 29 countries. Each of them have a unique identification number which makes it possible for sender to keep a track of the money transferred. While the list of countries accepting direct international money order is 29, the chances of it growing in the future can't be neglected.

More importantly, the service is not confined to public institutions like the US Postal Service anymore, but also includes private firms like Wal-Mart and MoneyGram. All these developments show that the veteran of the field has been successful in holding its ground and resisting competition from new methods of money transfer, which are getting popular.