How Does a Money Order Work?

Money orders are one form of payment, although they (like checks) may seem like a pre-internet, musty relic if you don’t know much about them. Sometimes, though, they can be useful.

What Is a Money Order?

Think of a money order as a paper check that can never bounce because it has been prepaid by the sender. It can be cashed or deposited just like a check, but it offers a few benefits over checks beyond never bouncing.

Where to Get a Money Order

Many of the biggest banks offer money orders, and often require that they be purchased at a branch. There can be a $5 fee when buying a money order worth up to $1,000 (though the fee may be waived for premium accounts). Money orders are also issued at places like Walmart (with a maximum fee of 88 cents, and the exact fee varying by location), convenience stores, credit unions, and the Postal Service. Postal Service fees for money orders are based on the dollar amount: $1.25 for a money order of up to $500, $1.75 for one from $500 to $1,000, and 45 cents for postal military money orders issued by military facilities.

Cashing Checks for Someone Else

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

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Equal Housing Lender

“Cashing Checks for Someone Else”

How Does a Money Order Work?

The Pros & Cons of Prepaid Debit Cards

“Cashing Checks for Someone Else”

How Does a Money Order Work?

The Pros & Cons of Prepaid Debit Cards

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