If you have friends or family living overseas, or if you’re travelling or living abroad, you’ll likely need to send money across international borders. There are several ways to conduct an international money transfer, and the best way for you will depend on factors like cost, speed, security and overall convenience.
International money orders are one way to do it - they’re straightforward but they do come with some drawbacks. Here’s our guide to international money orders, how they work and the pros and cons of making one.
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An international money order is a document that works as a safe and secure way of sending small amounts of money overseas.
How do international money orders work?
International money orders work in a similar way to checks, but you won’t need a bank account to receive the money. The sender pre-pays an amount and the document is sent to the recipient, who can exchange it for cash.
How do I send an international money order?
Sending an international money order is relatively straightforward - just follow these steps:
Step 1: Buy a money-order certificate from a third-party provider, such as your local postal service (Post Office, USPS etc), bank or money transfer branch. You’ll normally be able to pay using cash or card.
Step 2: Fill out the money order form with the required information, including your name, address and contact details, the recipient’s name, and the sum of money you’re sending.
Step 3: Send your international money order certificate to your recipient, usually via international mail
How much can I send with an international money order?
You will likely find that international money orders come with limits for how much you can send abroad, depending on the provider you use and the country you send to. For example, USPS has a maximum limit of $700 for international money orders, and allows the sending of multiple money orders up to a maximum limit of $10000.
Pros and cons of international money orders
Pros
Convenience: Sending an international money order can be a convenient option, as you can pay via cash, card or even traveller’s cheques, and you don’t need a bank account to send or receive funds
Safety: It’s a safer method than sending cash as even if the money transfer order is stolen in transit it can’t be used by anyone but the named recipient - and a signature is required by both sides
Prepaid guarantee: As the transfer is already prepaid by the sender there is no chance the money order will bounce
Trackable: International money ordered are often trackable, which means you’ll be able to see how far along your order is and when it’s been collected
Cons
Send and receive fees are expensive: International money orders can be quite costly when it comes to fees, compared to other methods of sending money
Low limits: International money orders can sometimes come with limits to how much you can send, so they aren’t always a great way of sending large amounts overseas
Poor exchange rates: You may not get the best currency exchange rates with international money orders, which affects how much you’ll be able to send
Slow as sent via post: While they are safe and reliable, international money ordered can take a while as they are usually sent via the mail
Not accepted everywhere: Some places don’t accept international money ordered, while some providers only let you send money ordered domestically
Where can I get an international money order?
You should be able to purchase an international money order from your local postal service, a range of banking institutions, and even some third-party companies like money transfer and currency exchange providers.
How can I get an international money order in the US?
If you’re in the US you should be able to purchase an international money order from the USPS to a range of countries - your transfer limit is generally around $700, but it will depend on where and how you send the money,
However in the US you won’t be able to send money via an international money order to certain countries - instead you’ll need to use a service called ‘Sure Money’ or ‘DineroSeguro’.
Aside from the USPS, you can also buy an international money order from various banks or even your local Walmart.
How can I get an international money order in Canada?
To get an international money order in Canada you’ll need to go to the relevant institution or organisation - they will take the required information and fill the form out for you. Canada’s postal service is called Canada Post.
How can I get an international money order in the UK?
To get an international money order in the UK you can purchase a money order from from the Post Office or some banks and financial institutions.
How much does an international money order cost?
International money transfers usually have a fixed fee that will depend on the amount you’re sending and/or the country you’re sending it to as well as the provider you send it with. For example, fees for international money orders with some of the biggest providers are:
Capped at £12.50 in the UK with the Post Office
Set at $10.25 with the USPS
$20.75 for Sure Money purchases between $750 and $1,500, and $14.55 for amounts lower than $750
How to cash an international money order?
When you receive an international money order, you’ll be able to cash it at a local bank, post office or even some shops. You will need to:
Sign the money order just before you give it to the cashier so they can see you do it
Provide identification, usually either a passport or driving licence
Pay any required fees as part of the transaction
Ensure the amount of money is correct before leaving the location
Are international money orders safe?
International money orders are completely safe and private, with no risk of losing money if the order is misplaced or stolen as it needs to be signed by the named recipient to be cashed.
What are the alternatives to an international money order?
International money orders have their upsides and their downsides, but it’s up to you to decide whether it’s the best way to send money abroad. You may want to consider the following alternatives:
Using a money transfer operator is the quickest, easiest and often the cheapest way to send money abroad. You can use a money transfer operator to send funds via bank transfers, money pickups and deliveries, and mobile wallet apps
Sending money via a wire transfer can be a useful method if you and the recipient use the same bank, but otherwise there can be significant fees and longer waiting times
International money orders vary in price, and in general cost upwards of $10. For example, an international money order from USPS will include issuing fee of $49.65", and the processing fee based on country. There is a limit of $700 for international money orders if using this route, but you can purchase several money orders of $700 denomination if you intend to send a higher amount. This means that, for instance, sending money orders worth $7000 through USPS would cost more than $100 in fees.
Another cost associated with international money transfers is the currency conversion fee when the recipient cashes the money order or deposits in their local account. Again, the exchange rate margin will vary on a variety of factors including the provider you use, the country you’re sending to, and the currencies involved, but it is typical to see margins associated with international money orders being higher than with online transfers.
How fast are international money orders?
The total time an international money order takes can vary from a few days to few weeks long depending on where the mail is being sent. This means it is rarely the fastest option for transferring money, and this is because there are a variety of steps involved.
Normally, it takes no more than a few minutes for you to get your money order made. Once you fill up the form and pay for the money order, the issuer will take only a few minutes to process the request and provide you the money order. However, once you have made and paid for your order, it will then take more time to be physically sent to your recipient before they can get it paid out.
Do international money orders have transfer limits?
Yes, international money orders have transfer limits, and in fact they tend to have very low maximum sending limits. For example, USPS has a maximum limit of $700 for international money orders, and allows the sending of multiple money orders up to a maximum limit of $10000. Generally, most providers would have a limit of around $1000 per money order, meaning that if you are planning to send large amounts overseas, international money orders might not be your best option.
Can I cancel an international money order?
You may be able to cancel an international money order if it has not been cashed.
What is the difference between a money order and a money transfer?
A money order is a physical, paper form of payment that can be purchased at certain retailers, post offices, and financial institutions. It is similar to a check but generally has a lower limit on the amount that can be sent. A money transfer, on the other hand, is an electronic transfer of funds from one bank account to another.
Where can I get an international money order?
Many banks and post offices offer international money orders. It is important to check with the specific institution as some may have limitations or fees for purchasing an international money order. Additionally, online services such as Western Union also offer the option to send international money orders.
How fast can you cash an international money order?
It depends on the specific country and financial institution. It could take anywhere from a few days to several weeks. In some cases, the recipient may also need to go through a verification process before they can receive the funds. To ensure faster processing, it is best to consult with both the issuing and receiving financial institutions beforehand. Additionally, it may be more efficient to send the funds electronically through a service such as wire transfer.
Where can I buy an international money order?
There are several places where you can purchase an international money order, including post offices, banks, and designated retail stores such as Western Union or MoneyGram. It is important to remember that the fees for purchasing and sending an international money order may vary depending on the provider. Additionally, some providers may have limits on the amount that can be sent with a single money order. It is recommended to compare options and shop around before making a decision on where to purchase an international money order.
Can you send money orders online?
In some cases, it is possible to send a money order online. However, it depends on the specific company or institution that you are using to send the money order. Some companies offer the option to send an electronic money order, while others may only offer the traditional paper version. It is important to research and confirm with your chosen company before attempting to send a money order online. Additionally, it is important to note that there may be additional fees associated with sending an electronic money order. It is always a good idea to carefully review the terms and conditions before proceeding with any type of online transaction.
How do you check if a money order has been cashed?
To check if a money order has been cashed, you can contact the issuer of the money order and provide them with the money order number. They should be able to tell you if it has been cashed or not. You can also try to track the money order through a tracking service, if available. Additionally, if you have receipt of the money order, you can often check its status online or by phone. It is important to keep track of your money orders and contact the issuer immediately if it is lost or stolen to ensure it does not get cashed by someone else.
Is there a limit to how much you can send using money orders?
The limit for money orders typically varies by provider, but it is usually between $500 and $1,000 per money order. Some providers may also have a daily or monthly limit for the total amount of money orders that can be purchased. It is important to check with your chosen provider before purchasing multiple money orders for large amounts. Additionally, it is recommended to spread out large payments among multiple money orders or other payment methods instead of using one single money order.
Summary
If you’re considering whether there might be a better alternative for you than an international money order, then take the time to compare them to other alternatives such as banks and online money transfer companies. If you want a guaranteed prepaid way of delivering money overseas, then international money orders might be for you, but by looking into the various online money transfer providers around today, you will probably be able to find a quicker and cheaper way to transfer your funds abroad.
Article Factchecked by Elliot Laybourne on 20th July 2022.
Elliott is a former investment banker with a 20 year career in the city of London.
During this time he held senior roles at ABN Amro, Societe Generale, Marex Financial and Natixis bank, specialising in commodity derivatives and options market-making.
During this time, Elliott’s client list included Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and the Pennsylvania State Public School Employees Retirement System, amongst others.
Mehdi is a writer and editor with over five years of experience in personal finance, writing for brands including MoneySuperMarket, Equifax and The AA. He graduated from Brunel University with a BA and MA, and likes to spend his free time hiking, travelling, and reading.
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