June 18, 2024
A comprehensive article on the costs and fees associated with postal money orders, including alternate methods of sending money and tips on how to maximize savings.


Sending money to family or friends locally or overseas can be an important task and an unavoidable one. One question that often comes up is how much is a postal money order? Postal money orders can be a great choice for those who do not have a bank account, or who prefer not to use electronic transfer services. In this article, we will explore all the costs associated with purchasing and using postal money orders, as well as alternative options and ways to save money on your transactions.

Exploring the Cost of Postal Money Orders: A Comprehensive Guide

A Postal money order is a pre-paid, negotiable monetary instrument. Postal money orders are issued by the United States Postal Service (USPS) and can be used to make payments or send money within the US or to other countries. One of the primary benefits of using a postal money order is that the funds are guaranteed, and lost or stolen orders can be replaced.

The cost of a postal money order can vary depending on several factors, including the amount of the money order, the destination, and any fees charged by the institution issuing the order. It is important to note that postal money orders can only be issued for amounts up to $1,000.

Different financial institutions and retailers offer different costs for postal money orders. In general, the cost of a postal money order is low and should not significantly impact your budget.

How Much Do Postal Money Orders Really Cost? Everything You Need to Know

A postal money order carries a fee for issuance. There are additional fees for money order services, including for the amount of the order. The service fee for a postal money order can range from $1.25 to $1.75. USPS charges a $1.25 fee for money orders up to $500, and $1.75 for money orders for $500 to $1,000.

However, some places such as Walmart, Western Union, and MoneyGram can charge as much as $5 or more for purchasing a postal money order, which could add up quickly if you frequently need to send money.

To calculate the total cost of a postal money order, the following formula can be used:

amount + issuance fee + service fee = total cost

The Hidden Fees of Postal Money Orders: Are They Worth It?

It is important to note that some financial institutions or retailers charge additional fees for cashing or depositing a postal money order. Also, currency exchange fees may apply if you are sending money to another country. These additional fees can add up quickly, making it important to compare your options and pick the provider with the lowest total cost.

Overall, postal money orders can be a good option for those who want a secure, guaranteed transfer of funds. However, individuals should weigh the cost of fees against the benefits of using a more affordable method of payment.

Postal Money Orders: A Breakdown of Costs and Alternatives

There are alternative methods of sending money that can be more affordable than a postal money order. Electronic transfers, such as wire transfers, PayPal or Venmo, can be a fast and affordable option, especially for international transfers.
Comparison of transfer fees and conversion rates can help to determine the most cost-effective method for individual needs.

From Start to Finish: Understanding the Cost of Postal Money Orders

The process of obtaining and using a postal money order is simple. You need to fill out a form and provide your identification to purchase a postal money order. Once the order is issued, you can send it to the intended recipient, who can then cash it at their financial institution. However, it is important to carefully read the terms and conditions of the postal money order to avoid additional fees.


Postal money orders are a secure and guaranteed way to send or receive money, with low costs overall. However, it is important to be aware of the associated fees, especially any hidden charges that may apply. Comparing different options for sending money, and creating a budget plan, can help to save money in the long run on your transactions.

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