Money order and a check are very similar. However, a money order varies from a personal cheque because the latter is guaranteed. The US Postal Service started issuing money orders in 1864. People would purchase a piece of paper that only precise individuals or companies could use. Today, the world has gone digital. The money order has somewhat become a relic of the past. A distinct feature that sets a money order from other means of payment is that it is not easily reproduced by other means of remittance regardless of financial technological advancement. This article will help us understand How to refund a money order.
What is a money order?
A money order is a form of payment using a check from a third party. It is a paper document like a check and is used as a means of remittance. It is a secure variant to cash or a personal check. It operates like a check-in that can be cashed or deposited into a bank account. It is also safe because it cannot be bounced as opposed to a cheque. A money order cannot be bought using a personal cheque or using a credit card. The name of the payee (who is the recipient) and the financial institution must be printed on the money order. Taking that these are provided, persons who are not recipients cannot cash a money order. Therefore, it is presumably more secure than other forms of payment. Money orders possess certain limits. An example is the US Postal Service. Here, a person cannot purchase a money order for $1000 and above.
How to cancel a money order
It is vital to keep your receipt after purchasing a money order. It will come in handy when rescinding a money order because it possesses vital information.
Steps:
- Reach out to the institution issuing the money order: a person can either reach out physically or remotely. Western Union permits the use of email. It is advisable to reach out in person. It is also not mandated to reach out to the exact location of its purchase.
- Give appropriate information on the request form: as mentioned earlier, it is core that the receipt is provided as it continues needed information. However, there may be cases where the receipt is lost. The next best thing to do is curate and provide as much information.
- Turn in the request form and pay the stipulated fee: the fees for aborting a money order may vary based on the financial institution. However, here are the fees of popular money order issuers:
- MoneyGram collects a fee of $18
- Western Union has a condition on whether you have your receipt or you do not. If you do, the fee is $15. If you do not, the fee is $30
- The US Postal Service’s fee is $6.25
With all this, rather than getting a brand new money order, a person can request a refund instead. It is regularly done on the same document. The steps are generally similar to that of the cancellation process.
How long does a money order refund take?
If the money order has not been paid after proper investigation, a refund or substitution will be given without fees. This varies depending on the financial institution. The process may be between thirty to sixty working days and this depends on the complexity of the instance. If the money order has been cashed or deposited, a duplicate of the document depicting the information of who accredited the money order and when will be given. If there is a case of theft or fraud, it is crucial to alert authorities and the evidence could assist the authorities to arrest the offender and ensure the money is restored.
Conclusion : How to refund a money order
Individuals should take appropriate steps to protect themselves against fraud. Though money order is phasing out of the financial realm, it is still considered one of the safest means of money exchange. In the event of aborting a money order, it is most suitable to go directly to whoever issued the money order.
Frequently Asked Questions (FAQs)
Can you correct a money order mistake?
Making mistakes on documents are occurrences that are bound to happen. Where a mistake is made when an order is being issued, changing the money order is likely to be impossible. What is best is to rescind the money order and issue a new one to replace it.
How long is a money order good for?
Normally, a money order does not expire. This implies that a money order can be cashed regardless of when it was issued. Issuers may however charge fees if, after a year or more, the money order is uncashed. The fees charged for money orders over a year may vary depending on the financial institution. However, these are the fees charged by popular financial institutions:
- Western Union collects a $2 fee per month for each month after one year of issue
- US Postal Service money orders never expire and they do not lose their value
Can you track a lost money order?
In an instance whereby a money order has been misplaced and there is uncertainty as to whether it has been cashed or not, the party should reach out to the financial institution that issued the money order. Financial institutions all have different ways by which they track lost money orders. However, a fee would be compulsory for the utility.
