What happened what happens when a money order is not cashed?
If a money order isn't cashed within the designated time frame, it becomes stale or expired, and the issuer may no longer honor it. Some issuers may charge a fee for replacing a stale money order or for refunding the amount. These fees can vary depending on the issuer's policies.
If the recipient does not cash or pick up the money order before it expires, the issuer will typically return the funds to the sender. Some issuers may charge a fee for returning the funds, and the sender may need to provide proof of purchase and identification to receive the funds back.
Because money orders are prepaid, they can't be rejected for insufficient funds. Other options are a certified check or a cashier's check, both of which guarantee payment and don't necessarily have a $1,000 limit, unlike many money orders. You're sending money internationally.
Money orders allow you to securely send or receive payments, providing an alternative to cash, checks or credit cards. They are similar to checks, but, because they're prepaid, money orders can't bounce. They can, however, get canceled or refunded if not filled out correctly.
Because money orders take physical form, it's sometimes easier for them to become lost, stolen, or damaged. There are certain steps you can take to replace money orders if they don't quite make it to their intended recipient. Money order losses or theft may take up to a month to make sure it has been lost.
Lost or Stolen Money Orders
You cannot stop payment on postal money orders, but a lost or stolen money order can be replaced. Money order loss or theft may take up to 30 days to confirm. Investigating a money order's lost or stolen status may take up to 60 days.
Customers wanting to find out if a money order has been cashed may go online to USPS.com to check the status. They will need to enter the money order serial number, Post Office number, and issued amount—all printed on the money order receipt—in order to obtain near real-time status information.
Since the funds for money orders are paid when they are purchased, they can't bounce like a check—so the funds are guaranteed. Both the sender and recipient must sign their name on the money order, which makes it harder for thieves to cash.
A money order is a secure way to send money or make a payment — up to $1,000. Many recipients prefer money orders because, unlike a personal check, a money order can't “bounce” and clears almost immediately; therefore, they provide a fast, risk-free form of payment.
Banks charge NSF fees when you don't have enough money in your checking account to cover a payment, whether from a bounced check or a denied electronic bill payment.
How do I get money back from an uncashed money order?
If it hasn't been cashed, you can fill out the Money Order Customer Request form to request a refund. You'll pay a $15 processing fee, deducted from the refund, to process the request. It takes about 30 days to complete a money order refund.
To cancel a money order, contact the issuer, provide details, attach a copy of the receipt, submit the cancellation form and pay a fee. Margarette Burnette is a NerdWallet authority on savings, who has been writing about bank accounts since before the Great Recession.
What if I already filled out the money order, but no longer need it for the payment I was going to make? If the money order is not altered & is in good condition, you may try to cash the money order at your bank or a check-cashing store.
The main way to track your money order is through the provider. The company's name will be on your receipt as the “issuer” and is typically your bank, USPS or a money-sending business. The provider isn't a reseller or a third party, like a supermarket or convenience store.
To verify a postal money order, call the Money Order Verification System at 1-866-459-7822. If you suspect fraud, call the U.S. Postal Inspection Service at 1-877-876-2455 (select option 4).
Money orders should be available immediately since they are paid for with cash. There is no chance the money is not there. You must give cash to the cashier or bank teller when you buy a money order! There is no time to wait for a check to clear!
The answer to your original question is: YES, it can be traced.
If it is a US Postal Money Order, you can bring your money order receipt to any Post Office, and fill out a form 6401, to either trace or replace the Money Order in question. There is a fee for this, but you will get the information as to when and where it was cashed.
For a bank-issued money order, your bank will likely keep a copy of the receipt, as they are the issuing institution. It is also likely that they will be able to identify your money order from your account history and trace it this way.
When you write a check and there's not enough funds in your account when it's presented, this is considered non-sufficient funds (NSF). When a check is returned due to NSF, it's returned to the payee that deposited the check, at their bank. This allows them to redeposit the check at a later time, if available.
Can you overdraft for a money order?
Money orders are paid for at the time of purchase and—unlike personal checks—the funds are guaranteed. No overdraft concerns. With money orders, there's no account to overdraw.
The bank will "bounce" the check if you write a bad one because there are insufficient funds in your account to cover it.
Because they're prepaid, money orders can't bounce. However, they aren't guaranteed by a bank, so you can purchase them without a bank account. Money orders are available at post offices, banks, retailers and grocery stores.
Money orders are typically capped at $1,000. Some places may limit them to smaller amounts. If you need to purchase multiple money orders to get around the limit, you may be better off getting one cashier's check for the full amount.
. Also, banks cannot charge overdraft fees that are excessive or expensive; the fees must be “reasonable” and are limited in the number of times they can be charged. This means no more than one overdraft coverage fee per month and six per year, per account, by the terms of the proposed bank overdraft fees law.
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