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A credit card convenience fee is an additional charge that a merchant collects on a purchase to compensate them for accepting your card vs. their usual form of payment. Perhaps they usually accept cash, check, or an electronic transfer, and allowing you to use plastic requires more time and effort for them, or it triggers fees for them.

Given that more than 80% of Americans use credit cards, it’s likely that many people get hit with a convenience fee at some point. Here’s what you need to know about how these fees work and how to avoid them.

What Is a Convenience Fee?

A convenience fee is a flat fee, such as $1, or a percentage of your purchase (up to 4%) that’s tacked onto the cost of your transaction that you, the cardholder, are expected to pay. Here’s some more intel about these fees:

•   A credit card convenience fee is typically charged by merchants when a customer uses a credit card in a payment channel that isn’t the usual one for the business. For instance, if a trade school usually accepts payments in person and you choose to pay online, you might be assessed an additional fee for the convenience of not turning up at their place of business.

•   The fee can reflect a merchant trying to pass along some fees they pay when you choose to use a credit card vs. other methods. When merchants allow a customer to use a credit card as a payment method, they (the retailer) are charged a credit card processing fee for the transaction. By charging a convenience fee, the merchant may offload that processing fee.

In some cases, a retailer will factor such credit card fees into their business model and won’t pass along the additional charge. That is why you may notice that convenience fees seem somewhat random. However, convenience fees must be disclosed when they are charged, meaning they can’t be added without a consumer being informed of them.

Example of a Convenience Fee

Here are examples of convenience fees in action:

•   When you fill up your tank at a gas station, you may notice that the price for gas is, say, 2.5% or 3% higher per gallon if you pay with a credit card vs. cash. That could be how the gas station owner recoups the credit card processing fees they must pay on such transactions.

•   You might pay an extra charge of a couple of dollars when you buy movie tickets online or via an app instead of at the box office. You enjoy the convenience of buying something with your card (and perhaps snagging seats to a show that could sell out), and the merchant is able to offset their costs somewhat.

Recommended: How Does a Credit Card Work?

Why Do Convenience Fees Exist?

The main reason you’re getting stuck with these convenience fees is that the merchants have to pay processing fees to payment networks, as noted above.

•   The payment networks or payment processors work with credit card issuers (such as your bank) and the card network (Visa, Mastercard, Discover, or American Express) to make sure the transaction is secure and processed smoothly.

•   The bank that issues the cards often charges the merchant a credit card processing fee for allowing them to accept this card. This is typically 1.5%-3.5% per transaction. The merchant might pass those fees on to you, the consumer, as a convenience fee.

This is also another reason some small businesses may not accept credit cards at all: They don’t want to have to pay the fees associated with taking them or pass them on to you.

Credit Card Company Rules on Convenience Fees

Here’s the breakdown for how some of the major credit card brands handle fees.

Convenience Fees vs Surcharge Fees: What’s the Difference?

While they both add to a purchase’s cost, here is the difference between what you may hear referred to as convenience fees and surcharge fees.

•   A surcharge fee covers the cost of you having the privilege of using a credit card. It’s added before taxes. Sometimes called a “checkout fee,” it is usually a percentage of the sale. Credit card surcharges are prohibited by law in a number of states. These charges are currently illegal in Connecticut, Maine, Massachusetts, and Puerto Rico, but these laws are subject to change.

•   A convenience fee, as noted above, typically covers the cost of doing a transaction with a credit card instead of another payment method. Sometimes, this is charged as a percentage of the transaction. Other times, it is charged as a flat fee, regardless of the cost of the products or services purchased.

How Can Convenience Fees Be Avoided?

When you’re trying to avoid credit card convenience fees, you can use these tactics:

•   You can choose to pay with a method other than plastic, such as cash, check, or money orders, at some merchants. Or you may be able to use an electronic payment, such as an eCheck or ACH payment.

For example, if you’re paying for college tuition, you might be able to set up an online payment using an electronic check, money order, or personal check. At some schools, this could save you up to 3% per payment transaction. (That being said, if you have a high-rewards credit card, conducting an expensive transaction might be beneficial if you can get cash back.)

•   You can scan for notices about convenience fees before conducting a transaction. You can look for posted signs in brick-and-mortar locations and read the payment terms on websites and in apps.

•   You can ask before purchasing a product or service if paying by cash will save you money (this can sometimes be the case with service providers) or if using a credit card will trigger a fee.

Credit card fees are fairly common today, so you’ll want to be alert to how they can crop up and avoid them when you can.

Recommended: How to Use a Credit Card

The Takeaway

Knowing that credit card convenience fees (and surcharge fees) exist, the regulations merchants must follow when charging them, and how to avoid them can help save you money in the long run.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

Why am I being charged a convenience fee?

A credit card convenience fee typically reflects that the merchant is willing to accept plastic vs. other payment methods they usually take. These fees may be a way that merchants recoup the processing fees that they then must pay when they allow customers to use a credit card.

Is it legal to charge a convenience fee for credit cards?

Credit card convenience fees are generally legal in all U.S. states. However, they can’t be added on without a customer being informed.

How to avoid credit card convenience fees?

You can usually avoid credit card convenience fees by using an alternate payment form. For example, you could use cash, a check, or an electronic payment.

Photo credit: iStock/blackCAT

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You can buy a car with a credit card in certain circumstances or at least cover a portion of the purchase, such as the down payment. However, it’s likely not a good idea. That’s because you’ll face high credit card interest charges and potentially fees, and you’ll drive up your credit utilization (that is, if your credit limit is even high enough to cover a car purchase).

Before swiping your card for a new set of wheels, pause to ask yourself whether this is really the best way for you to purchase your vehicle. There are alternatives to help you purchase a car that may not cost you to the same extent.

What to Know About Buying a Car With a Credit Card

In short, the drawbacks of using a credit card to buy a car will likely outweigh the perks. That being said, it is possible to do, assuming your credit limit is high enough and that you can find a dealership that will accept credit cards for car purchases. Not all dealerships do, and many that do will tack on a fee for credit card payments.

Perhaps the biggest draw to buying a car with a credit card is the potential to earn rewards. You might also be able to take advantage of a promotional offer that features 0% interest for a limited period of time. But be sure to consider those perks against the risks. If you don’t pay off your full balance before interest kicks in, you’ll be paying at a high rate, much steeper than car loans, for instance. You also could do damage to your credit if you’re late on payments or if your automobile purchase eats up too much of your credit limit.

Buying a Car With a Credit Card

If, after considering the drawbacks, you decide you want to use a credit card to buy a car, here’s a step-by-step look at how to do so.

1. See if the Dealership Takes Credit Card Purchases

You’ve decided how much you want to spend on a new car, and you’ve negotiated a fair price with a dealer. But before slapping down your plastic to buy a new vehicle or purchase a used car, you’ll first need to check with your car dealership to verify that they accept credit card purchases. Additionally, you’ll need to find out which cards they accept and how much of the total purchase price they will allow you to charge.

If you go to a dealer that won’t accept credit card purchases or that limits the amount, you’ll have to decide whether to pay another way or to go to another place that sells the car you want and allows credit card purchases.

2. Check Your Credit Limit to Determine if It’s High Enough

If you’ve selected a car at a dealership that takes credit card payments, your next step is to check your credit limit to determine whether it’s high enough to use one card. You may need to spread out the purchase across different types of credit cards.

If your combined limits aren’t enough, you could pay the difference with a cashier’s check and still reap some of the rewards available through credit card use. Or you could ask your credit card companies to increase your credit limits.

3. Notify Your Credit Company

It makes sense to notify your credit card issuers that you intend to use your credit cards to make a large purchase. If you don’t regularly make large purchases on your credit cards, the transaction might get flagged as potentially fraudulent and could get declined.

4. Get Strategic With Credit Card Rewards and Promos

At a car dealership that does let you pay for a car with a credit card or at least a portion of it, you might consider using a card that offers credit card rewards. If you have cash to pay the charge before it starts accruing interest, you’re basically getting a no-interest, short-term loan while taking advantage of credit card perks.

5. Determine How You’ll Pay Off Your Balance in Time

Before handing over your credit card to buy a car, make sure you know how you’ll pay off your balance. Ideally, you’ll pay it off in full by the statement due date, so as to avoid accruing interest on what’s likely already a hefty charge. Or, if your credit card has a 0% introductory APR offer that you’re taking advantage of, determine how you’ll pay off the full balance before the standard interest rate kicks in and interest charges start accruing.

If you’re not sure you can pay off your car before interest kicks in, you might reconsider whether you realistically can use a credit card to buy a car. Instead, you might consider ways to save money on your car purchase, such as buying a high-mileage car or weighing the cost of leasing vs. buying a car.

Recommended: What Is a Charge Card?

Why Some Car Dealers Don’t Accept Credit Cards

On the surface, it might seem odd that auto dealers wouldn’t accept credit cards. After all, they want to make a sale, right? Of course they do, but, like other merchants, auto dealers must pay credit card processing fees for each credit card transaction they make. These fees tend to be between 1.5% and 4%, and they can add up pretty quickly when you consider that cars can cost in the tens of thousands of dollars. By rejecting credit cards, dealers can save themselves the expense and hassle of paying these fees.

If a dealer that normally doesn’t allow credit card purchases makes an exception, expect them to tack on convenience fees of 2% to 4% to help them cover the cost of the transaction. Pay close attention to these fees because they may offset any benefit you might gain from using a rewards card.

How Much Will Buying a Car With a Credit Card Cost You?

The cost to buy a car with a credit card can exceed the vehicle’s sticker price. For one, it’s likely that you’ll see a convenience fee added to your bill. Some dealerships may have this already baked into their prices, but for others that don’t commonly accept credit cards, they’ll add it on themselves to cover their processing costs. Typically, convenience fees run anywhere from 2% to 4% of the purchase amount, which may be enough to offset any credit card rewards you’d earn.

Second, your costs could increase thanks to interest charges. If you buy a car with a credit card and then don’t immediately pay off the full statement balance, interest can start to accrue. Average credit card interest rates are around 22% as of May 2026. That can start adding up fast on a car purchase that’s likely in the tens of thousands of dollars.

Pros of Car Buying With a Credit Card

Under certain circumstances, using a credit card to buy a vehicle may be a strategy you’d consider, especially if you have enough money to pay off the balance in full when your statement comes. Here’s a look at the upsides to buying a car with a credit card.

Fast and Easy Way to Buy a Car

With a credit card, you’ll have a fast and easy way to purchase your car of choice. You can skip the hassle of filling out loan paperwork and waiting to find out if you’re approved.

Potential to Earn Rewards

By purchasing a car with a credit card, you may earn rewards, something you wouldn’t get if you simply used a cashier’s check to buy the car. But before you get too swept up in your purchase’s rewards potential, see if the amount you’ll earn in rewards will offset how much you may end up paying in fees or interest.

Take Advantage of a Zero-Interest Promo

You may have slightly longer to pay off your purchase if you use a no-interest credit card. Often, these 0% interest offers last for a certain period of time, usually anywhere from six to 21 months. In order to avoid interest payments, you must finish paying off your vehicle in that time period. Still, it offers a little leeway.

Keep in mind that this strategy may be riskier than paying off your full balance immediately. If, for some reason, you can’t pay off the balance within the introductory no-interest period due to unforeseen circumstances, the card will revert to its regular rate, which may be quite high. Should that happen, the situation can go downhill from there. Some credit card companies will then charge the full interest rate on the entire purchase, not just on the remaining balance.

Recommended: When Are Credit Card Payments Due?

Cons of Car Buying With a Credit Card

In contrast to the few upsides, there are a number of major drawbacks to turning to your credit card to make a car purchase.

High Credit Card Interest Rates

The biggest reason not to buy a car with your credit card is that credit card interest rates are typically much higher than other available options. The average credit card APR was 22% in May 2026. In contrast, for those with prime credit scores, the average interest rate for an auto loan to purchase a new car in July 2026 was 4.66%, while for used cars it was 7.70%.

Credit Card Fees

You also might get stuck with some costly fees by buying a car with a credit card. For starters, there’s the previously mentioned fee that the dealership will likely charge you for the convenience of using your credit card. As noted, convenience fees typically run 2% to 4% of the purchase amount.

That’s not the only fee you might run into either. For example, let’s say that your strategy is to purchase a car on your current credit cards, then transfer the balance to a zero-interest credit card. Besides the challenges listed above, you may add balance transfer fees to the mix. These fees can be as high as 5%, which, on a $20,000 car, is $1,000.

Potential to Harm Your Credit Score

Another major downside of purchasing a car with a credit card is that it can significantly increase your credit utilization, which accounts for 30% of your FICO® score. With the price of a car, it can be easy to push your credit utilization ratio way past the recommended 30%, which could translate to negative effects to your credit.

If you miss payments or are late making them, that could lead to further damage to your credit score.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

No Addition to Your Credit Mix

Here’s something else to consider: Having different kinds of debt can actually help with your credit score. So using an installment loan, such as a traditional auto loan, to buy your car, instead of a credit card, may be helpful to your overall long-term financial situation. And if you have a good enough credit score to get approved for an auto loan with lower interest rates than the average credit card interest rate, you could come out ahead.

Other Options for Buying a Car

While technically you can pay for a car with a credit card, it might not be your best option. Here are a couple of alternatives to consider.

Auto Loan

If you decide to finance some or all or all of your auto purchase, you can apply for a car loan through the dealership or other lenders. Auto loans are typically secured loans that use the vehicle as collateral. So, if you fail to make payments, your lender has the option to repossess the vehicle to cover some of your debt.

Dealers are often able to get same-day financing approved, but there may be some pressure to buy while the salesperson takes advantage of your excitement. Banks and private lenders may take longer to approve an application but sometimes offer better deals on terms or interest rates. Taking emotion out of the equation when buying a car will allow you to compare rates and terms to get the best deal for your financial situation.

Personal Loan

You may also want to consider buying a car with a personal loan, which is an unsecured loan that’s not backed by collateral. Personal loans can be used to cover many expenses, including the cost of buying a car.

Because they are unsecured, interest rates on personal loans may be higher than other auto financing options, depending on the applicant’s creditworthiness.

The Takeaway

While you can buy a car with a credit card, there are potential pitfalls and fees to be aware of as you make your decision about how to pay. If you find a dealership that accepts credit card payments and you decide it’s the best path for you, make sure to take the necessary steps of checking in on your credit limit, alerting your credit card company, and making a plan for prompt repayment. It might, however, be better to select another option to cover your car purchase, and reserve your credit card for other spending.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

Do car dealers accept credit cards?

It depends. Many dealers won’t accept credit cards due to the processing fees they’d incur, but some do. In those cases, dealers may pass the cost along to the consumer in the form of a convenience fee.

Can you use a credit card for a car down payment?

It’s more common for dealers to allow you to use a credit card to pay for a portion of your purchase, such as your down payment, as opposed to the entire car purchase. Still, some dealers won’t accept credit cards at all.

Is it better to pay for a car with a credit card or a loan?

It’s likely better to use a loan to pay for a credit card. That’s because loans tend to have significantly lower interest rates than credit cards.

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Right now, nine states do not charge state income taxes, which means residents in those states don’t need to file a state-level tax return. While an obvious benefit of that is a reduction in residents’ annual tax liability, are there also drawbacks to living in a state with no income taxes?

Here, learn the pros and cons of no state income tax. This information can help you determine if living in a state with no income tax is better for you.

Which States Have Zero State Income Tax?

Currently, nine states do not have a state income tax on earned income:

•   Alaska

•   Florida

•   Nevada

•   New Hampshire

•   South Dakota

•   Tennessee

•   Texas

•   Washington*

•   Wyoming

*Washington charges state taxes on capital gains but not on income. Legislation is in place to begin imposing an income tax on Washington residents with a $1 million standard deduction in 2028, though opponents are seeking to repeal the tax.

Recommended: Earned vs. Unearned Income on Taxes

What Are the Pros and Cons of Having No State Income Tax?

At first blush, having no state income tax sounds like a win for Americans — and for many high earners, it might be. However, there are also downsides to living in a state with no income taxes. Here’s a closer look.

Pro: You’ll Spend Less Money on Income Taxes Overall

While nearly everyone must file federal taxes, residents in states without income taxes will benefit from a lower overall tax bill each tax season. This can be a boost to your financial health.

Con: You’ll Likely Spend More on Sales and Property Taxes

Just because states don’t charge income taxes doesn’t mean they’re not getting revenue through different types of taxes. States without income taxes sometimes have higher sales and property taxes, for example.

Tennessee, Washington, Nevada, and Texas are among the top 20 states with the highest combined state and local sales taxes. New Hampshire, Texas, South Dakota, and Alaska all have property taxes higher than the national average — with the former two in the top 10 states overall.

An added con to this: Unlike income taxes, which progressively increase based on your income level and resulting tax bracket, sales taxes are the same no matter how much you make. This means that lower-income taxpayers shoulder a heavier tax burden in states with no income taxes, according to the Institute on Taxation and Economic Policy.

Pro: Tax Filing Is Easier

If you live in a state without an income tax, filing can be a breeze. You’ll have one less tax filing deadline to worry about.

Those who reside where a state tax is collected, however, may need to invest in professional tax software or an accountant to handle their state taxes. This is, of course, an added expense — and it creates extra steps in the tax filing process.

Con: There’s Less in the Budget for Infrastructure and Education

States use income taxes to fund projects such as improving infrastructure and investing in education. Without income taxes, there may be a smaller budget for such projects.

For instance, Florida, Tennessee, Texas, and South Dakota are all among the top 10 states that spend the least amount of money per K-12 student, according to a report from the U.S. Census Bureau. The common thread? These four states don’t have income taxes.

Pro: Having No Taxes Can Attract People to Move to the State

A lack of state income taxes may be a selling point for many people looking to move, whether they’re seeking a more affordable lifestyle, a welcoming state to retire in, or a home closer to friends and family.

Why does this matter? An influx of residents to a state can be a boon to the local economy.

Con: Cost of Living May Be Higher

Though it’s not the case across all nine states without income taxes, the cost of living could be higher. Out of these states, four are among the 20 most expensive states to live in: Alaska, New Hampshire, Washington, and Florida, according to cost of living data from the Economic Research Institute.

Here’s how the pluses and minuses stack up in chart form:

Why Do Some States Have Zero State Income Taxes?

Some states may choose to enact a no-state-income-tax policy to encourage Americans to move there from other states and, thus, boost their economy. U.S. Census Bureau data on interstate migration backs up this theory.

It may also reflect local political sentiment: Conservative politics tend to favor lowering taxes, while progressive politics often prioritize the social programs that can be achieved through higher taxes.

Recommended: Tips on Saving Money Daily

Do States With No Income Tax Save Residents Money?

States with no income taxes save residents money on their income taxes. However, many of these states can be expensive in other ways. They might have a higher sales tax, higher property taxes, and/or a higher cost of living.

Before deciding on a move to a state without income taxes, it’s a good idea to view the whole picture by researching sales and property tax rates and the overall cost of living.

Recommended: Tax-Friendly States That Don’t Tax Pensions and Social Security Income

Is Living in a State With No Income Tax Better?

Some taxpayers may say that living in a state with no income tax is better, while others might not. In general, high-income earners benefit more from a lack of state income taxes, since they may enjoy reduced taxes. Low-income earners, however, may actually shoulder more of the tax burden when states generate revenue from sales tax.

Taxpayers should also consider how much they value lower taxes versus more social programs and investments in things such as infrastructure and education. Each individual will have their own opinion.

The Takeaway

States without income taxes may save you a lot of money when it’s time to file taxes, but there may be hidden costs of living in such states, such as higher sales and property taxes. Before moving, it’s important to consider the full picture to better understand the potential impact on your finances.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Are other taxes higher in states with no income tax?

Though it varies, it’s common for states with no income taxes to make up for the lack of revenue through other forms of tax, primarily sales and property taxes. And unlike income taxes, which may vary depending on your income, sales taxes are the same no matter how much you make.

Are food costs more in states with no income tax?

Food costs contribute to a state’s total cost of living. In 2026, four of the 20 most expensive states to live in had no income tax. While that doesn’t inherently mean food costs are higher in such states, it may validate that a disproportionate number of states with no income tax have a higher cost of living.

Is living in a state with no income tax better for low- or high-income taxpayers?

High-income taxpayers may benefit more from living in states with no income taxes. The more money you make, the higher percentage of your income you must pay in income taxes, so high earners will likely save more.

In addition, states with no income tax might see less spending on social services such as education, which can affect the quality of learning for students.

However, there may be benefits for all residents in no income tax states. For example, businesses and developers may relocate to such states, which could increase job opportunities.

Photo credit: iStock/mihailomilovanovic

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A money order is a secure form of paper payment that’s paid for upfront. When one gets lost, you may be able to get a refund if it hasn’t been cashed yet. In this situation, it’s important to act quickly and keep your paperwork organized. You may also need to pay a fee to get your money back. If the money order has been cashed, however, you may be out of luck.

Below, you’ll learn what steps to take if a money order is lost so you can manage your finances as effectively as possible.

Tracking Money Orders

Knowing how to track a money order is crucial, especially if you suspect that your money order is lost or stolen — or if you suspect you’re a victim of a money order scam.

When you purchase a money order, you typically use cash, a debit card connected to your checking account, or a traveler’s check (you usually can’t use a credit card). You’ll receive a receipt with a serial number or money order number. The issuer of the money order usually has a website where you can enter this number to determine if the money order has been cashed.

If the money order hasn’t been cashed and you think it was lost or possibly stolen en route to its recipient, you’ll need this tracking number to replace or cancel the money order.

Recommended: Can You Buy a Money Order With a Credit Card?

What Happens if You Lose a Money Order?

If you lose a money order, you may be able to work with the issuer to replace or cancel it (for a fee). Each issuer has its own process, which is detailed on its website.

However, if the money order has already been cashed, you typically won’t be able to recover the funds (more on that below).

Worth noting: Because money orders have the payee’s name and address on them, it’s difficult for the wrong person to cash a money order that doesn’t belong to them. This makes money orders significantly safer than sending cash.

Here’s what happens if you lose a money order from each of the major issuers:

USPS

The U.S. Postal Service (USPS) has affordable money orders (as low as $2.55), but if yours has been lost or stolen, you can’t cancel it if it’s already been cashed. If it hasn’t been cashed, the USPS will replace it or issue a refund.

You’ll need the serial number, the post office number of the branch where you purchased it, and the dollar amount in order to track the money order on the U.S. Postal Service website. This process can take up to 30 days.

If you learn that the money order hasn’t been deposited, you can start a Money Order Inquiry. The USPS website advises customers to start the inquiry at a post office branch and then check up on the process online. It usually costs $21 in processing fees to replace the money order, and the process can take up to 60 days. The same process can yield results even if you don’t have your original receipt.

Recommended: How to Transfer Money Between Banks

Western Union

Before attempting to cancel a money order with Western Union, customers are instructed to call 1-800-999-9660 to check the payment’s status.

Western Union allows you to cancel money orders that haven’t been deposited. You’ll be issued a refund in roughly 30 days (additional time may be needed for it to arrive by mail.).

To start the process, fill out the Money Order Customer Request form on the Western Union website using the details on your receipt. There’s currently no fee for this request if a money order has a face value under $5, a $5 fee for money orders that are more than $5 but less than $100, and a fee of $15 for those with a face value of more than $100.

If you don’t have the receipt, you won’t be able to request a refund.

MoneyGram

When you purchase a money order at a retail location, the issuer might be MoneyGram. Like the USPS, MoneyGram doesn’t offer refunds on money orders that have been cashed or deposited. If the money order hasn’t been cashed, you can fill out a replacement or refund form.

You can track the status of a money order on the MoneyGram website if you have the serial number and dollar amount.

The replacement money order takes seven business days to process (and you can track that status online as well). The fee for this service is $25 for money orders of $50 or more or 50% of the face value for those under $50.

If you’re trying to track a MoneyGram money order and don’t have your receipt with the necessary information, you won’t be able to proceed with the replacement process.

Bank or Credit Union

If you purchased a money order at a specific bank or credit union, you can contact that financial institution, over the phone or in person, to ask how to track your money order. There’s a good deal of variation among financial institutions, so you can also ask them to advise you on the process, timeline, and fees for replacing or canceling a lost money order.

Recommended: 50/30/20 Budget Calculator

Replacing or Canceling a Lost Money Order

As you’ve learned, each issuer has its own guidelines for replacing or canceling a lost money order. However, there’s a common set of actions to take in each instance.

Here’s what to do if you lose a money order:

1. Tracking the Money Order

First and foremost, issuers want you to track the money order before anything else. If you discover it has been cashed, you can’t move forward with the rest of these steps.

2. Getting in Touch With the Issuer

Getting in touch with the issuer to understand your options is a good next step. Some issuers may let you take action over the phone or in person, and others may direct you to a replacement or cancellation form online.

3. Filling Out a Request Form

To cancel or replace the money order, you’ll often have to fill out a form online. Depending on the issuer, you’ll need information such as:

•   The serial or money order number

•   The dollar amount

•   The name and location where you purchased the money order

Issuers may have options for canceling a money order even if you don’t have all this information. The fees and processing times for doing so may increase due to the additional work required to trace the money order.

4. Paying a Replacement or Cancellation Fee

No matter where you purchased the money order, you’ll likely have to pay a fee to replace or cancel it. The fee is usually around $15, though it can be higher if you don’t have your receipt.

Recommended: Where Can You Cash a Check With No Fees?

What Happens if Your Money Order Was Cashed?

If your money order has already been cashed, there’s usually no way of getting your money back. However, you may still want the issuer to provide a copy of the money order so that you can use it to file a bank fraud claim or talk to law enforcement.

Depositing Money Orders

If you received a money order as payment and aren’t sure what to do, you have multiple options for depositing or cashing the money order.

•   Banks and credit unions are a smart option. If you take it to your personal bank, you may be able to deposit the money straight into your bank account.

•   You may also be able to cash your money order at a check-cashing location, a Western Union branch, or the post office.

•   You might be able to cash a money order at a grocery store. Walmart will cash Western Union and MoneyGram money orders.

Depending on where you cash the money order, you might have to pay a fee. For example, at Walmart, you may pay $4 to cash up to $1,000, which is the usual face value limit for individual money orders.

The Takeaway

Money orders are typically a safe way to send money to friends, family, and businesses. However, money orders can get lost or stolen. What happens next will depend on whether the money order has been cashed yet. If your money order is missing and hasn’t been cashed yet, you may be able to recover the money — for a fee. If it’s been cashed, you’re typically out of luck and can’t cancel it and/or get a refund.

FAQ

Can a lost money order be traced?

A money order can’t be traced. Like a personal check, a money order is a piece of paper without any embedded tracking technology or digital trail. The only way you can track a money order is if it’s deposited — at which point it’s too late to try to cancel or replace it.

Can you get a money order reprinted?

If you’ve lost a money order and it hasn’t been deposited, it may be possible to have it reprinted. Fees may be involved. You’ll need to contact the issuer and follow their steps for replacing or canceling the money order.

How do you claim a lost money order?

If you believe your money order is lost or stolen, contact the issuer to check its status. You’ll need information from the receipt. If you don’t have these details, the issuer may be able to retrieve them, often for a fee.

Each issuer has its own process. For instance, the U.S. Postal Service (USPS) requires that you visit a post office in person and start a Money Order Inquiry. Western Union allows you to fill out a form online. Expect to pay a fee — and if the money order has already been deposited, you can’t cancel or replace it.

How can you see who cashed a money order?

While you can’t see who cashed a money order, you can determine if it’s been cashed. Each money order issuer has its own process for tracking, but they’ll usually need information from the receipt, such as the money order number and dollar amount. Contact the issuer (check their website or app, or call customer service) if you’re not sure where to start. Also, if you’ve lost or misplaced the receipt, you may be able to track that information down with the issuer’s help and for a fee.

Photo credit: iStock/MichaelPenhallow

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
This article is not intended to be legal advice. Please consult an attorney for advice.

SOBNK-Q126-101

Depending on whether you’re opening an account online or in person, the application may take anywhere from a few minutes to an hour, though the verification process may take longer in some cases. Whether you’re opening a checking account or a savings account can also make a difference in how much time you’ll need to spend.

Read on to learn what to expect when you open a new bank account, plus tips to help you accomplish this important financial task as quickly as possible.

What to Do Before Opening a Bank Account

To begin opening a new bank account, you’ll need to make two key decisions: where you’ll open the account and the type of account you want. Options for where to park your funds typically include the following:

•   Banks: People often use the term “bank” to refer to traditional brick-and-mortar ones, including large national chains and smaller, local banks. You can physically visit them, typically through a lobby or drive-through, and they offer a range of savings and lending services.

•   Credit unions: Credit unions, on the other hand, are a different kind of financial institution (usually brick and mortar, as well). With this structure, account holders are members. Some credit unions are national, while others are more regional in terms of their reach and their branches. Members usually need to meet certain guidelines to join, perhaps related to their job or geography, and they can often benefit from lower loan rates and higher interest when saving.

•   Online banks: Services offered by online banks are likely to be similar to those of brick-and-mortar banks. However, account holders will bank through a website and/or mobile app. Because online banks don’t have the expense of physical locations to maintain, they may often offer better interest rates and charge fewer fees than traditional banks.

Once you’ve decided whether a traditional bank, online bank, or a credit union feels like the right fit for you, you’re ready to move ahead to the next step. The second key decision is what kind of account to open.

•   Checking account: The account holder opens a checking account by depositing money into this account, whether in person, online, or through direct deposit. They then have the ability to write checks, use a debit card, or use an online payment system (such as PayPal) to make purchases, pay bills, and so forth. Sometimes, the money in the account may earn interest.

•   Savings account: With this kind of account, once the money is deposited, the goal is usually for it to grow, perhaps as an emergency savings account or one designed to save up for a larger purchase. Financial institutions will differ in the interest rates they’ll pay, so you may want to shop around and see where you can get the best deals, noting whether there are minimum balance requirements and other qualifications required.

•   Money market accounts: These are another fairly common option. Money market accounts are typically used to hold money that the account holder doesn’t intend to spend right away. Many money market accounts also come with convenient check-writing and debit card features if you do want to use the funds you’ve deposited. This type of account earns interest.

How Long Does It Take to Open a Bank Account?

If time is of the essence — say, you’ve just moved to a new town and need to get your banking set up, or you’re a recent grad who’s just starting “adulting” — you may wonder how long it takes to open a bank account.

Various kinds of financial institutions have different processes and timelines for creating a bank account. Completing the steps to open an account may be faster online than in person.

Online

Online applications typically have fields where you can quickly enter information or check a particular box. So, you may be able to complete an application in about 15 minutes, especially if you have all of your personal data at hand. Approval may be nearly instantaneous, but it could also take a few days depending on the bank and if additional information is needed or the application is more complex.

Physically

It may take a bit longer to physically apply at a brick-and-mortar because you may need to wait in line to see a teller, unless you made an appointment in advance, and possibly fill in the application by hand. Then, in general, the time needed to approve the account may vary from a few minutes to the same day to a few days, depending on the bank and the circumstances. It’s possible, however, that you may be issued a debit card right away, though this isn’t always the case.

Keep in mind that for both online and in-person applications, associated checks will usually be mailed to you in the post, which can take a week to 10 days till receipt.

How to Open a Bank Account

Here are the steps to follow to open a bank account:

•   Once you know the type of account you want to open and where, you can go to a physical location during banking hours or open the account yourself online, anytime and anywhere. Be prepared with government forms of ID, which can include a driver’s license, state ID, military ID, or a passport. Also have your Social Security number handy.

•   Financial institutions will ask for personal information, including your name, address, telephone number, date of birth, and Social Security number, to verify your identity.

•   The financial institution may check your credit before opening up the bank account. Usually, if they do, it’s through what’s known as a soft pull or soft credit inquiry, which are only visible to you on your credit report. What’s more, the prospective account holder typically doesn’t need to have stellar credit to qualify. It’s just a checkpoint as the bank gets to know you and determines whether you pose a risk in terms of keeping your account in good standing. If you’re concerned about this step for any reason, ask about the bank’s policy before proceeding.

•   Once an account is approved, you’ll need to agree to the terms and conditions, perhaps by signing a physical document at a brick-and-mortar location or by checking an “I agree” button online. Then, you can make a deposit of funds that’s at least enough to meet the financial institution’s minimum requirement.

Recommended: What Do I Need to Open a Bank Account?

What to Do If You Cannot Open a Bank Account

If you’re turned down for a bank account (yes, unfortunately, it can happen), the first step can be to check the rejection letter to find out the reason. If that isn’t clear, then ask the financial institution why the account couldn’t be opened right now.

Also ask about the timeframe to remedy the situation and/or reapply. How long does it take to get a bank account approved after a rejection? It’s possible that the solution is simple, perhaps requiring more information or a clarification.

If your banking history is an issue, you can work toward fixing that. In the meantime, you could try other financial institutions with different guidelines. Also, some banks have products specifically designed for people trying to build or repair their credit, such as what’s known as a second chance account. They may come with more restrictions, but they can serve as a bridge between now and when you can qualify for other bank accounts.

The Takeaway

If you’re ready to open a bank account, whether it’s a checking or a savings account, you’ll have the choice to do so at a brick-and-mortar bank, an online bank, or a credit union. Typically, applying to an online bank will be your quickest option, with an account potentially being set up in just a few minutes. The same process at a physical bank may take an hour (not including travel time). In either case, the application may be approved on the spot or you may need to wait for approval depending on the bank’s policy and application details.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What do I need to open a bank account?

Financial institutions will typically want to see government forms of ID, such as your driver’s license, state ID, passport, or military ID. You’ll also need to share personal information, including your name, address, phone number, and email address, along with your date of birth and Social Security number. And you often need to make an initial deposit of funds, although the specifics vary by bank.

How much money do you need to open a bank account?

It depends. Financial institutions vary in terms of how much they require as a minimum deposit amount, with some not requiring any amount at all. Sometimes, banks will charge a fee if you don’t maintain a certain balance in your account, so compare financial institution policies to find one that works well for you.

How fast can I open a bank account?

The process of applying for a bank account, it can be as quick as 15 minutes or so. Approvals, however, may take anywhere from an instant to a few days, depending on the bank and the complexity of the application. For example, a joint account with multiple beneficiaries might take longer. Also, it can take a week or more to get physical checks and/or a debit card by snail mail.

Photo credit: iStock/Vladimir Sukhachev

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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