MoneyTransfers

Money Orders to Canada: A Full Guide and Alternatives

A money order is a safe and secure way you can send money to and from Canada. Avoid being caught out by high fees and large exchange rate markups by reading our full guide below.

April Summers
Author 
April Summers
Fact Checker 
Elliot Laybourne
4 minutes
December 20th, 2023
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What is a money order?

Pre-internet, many people around the world had no choice but to send money in the mail, albeit cash or cheque. The first known instance of a money order (also known as a postal order) dates back to the late 1800’s, when the U.S. Postal Service began issuing them so people could pay bills, purchase items from catalogues and send money.

For those with no other option but to send money via mail, money orders have generally always been considered the best option. They are a much safer payment method than sending cash, because if cash is stolen it can be used by whoever intercepted the delivery; and far more convenient than sending a cheque, which requires a bank account and may bounce when the recipient cashes it.

Instead, a money order is a piece of paper, not dissimilar from a cheque, that is a secure payment method. It is a cashable document which does not require a bank account, debit or credit card.

In the age of online payments and electronic money transfers, money orders are not in as high demand, however they are still in circulation.

How money orders work in Canada

In Canada, even if you are sending money internationally, money orders will only be available CAD, USD or GBP. In addition to this, if you purchase a money order through Canada Post (the primary postal operator) the money will typically only be sent within Canada.

Another important thing to note is that money orders purchased in Canada will have a maximum limit of $999.99 Canadian dollars.

Are money orders safe?

Money orders are one of the safest ways to send money in the mail. They're safer than cash because it cannot be intercepted and cannot be easily duplicated.

Furthermore, when purchasing a money order, information will be requested about both sender and receiver; this ensures that the money order can only be cashed by the intended beneficiary.

Another added safety measure, designed to ensure funds are deposited with the intended recipient, include the following anti-counterfeiting features:

  • A barcode serial number

  • Printed in polarized ink

  • A unique security code verified by the beneficiary upon collection

  • A receipt from the issuer which provides proof of payment (in case the money order is lost) and can also provides a tracking number so both parties can track the status of the payment

Generally speaking, money orders are considered safe, but due to the ever-evolving world of financial services and digital payment platforms, they are no longer considered the safest option.

Types of money orders available in Canada

Although not as popular as they once were, money orders can be purchased in Canada from the following places:

Money transfer providers
High street banks
Canada Post

How much a money order costs

As with most remittances, money orders come with a price, so it is worth preparing to pay a fee on top of the value of the money order.

Fees differ depending on the issuer, and banks are generally most expensive, with fees ranging between $5 - 15 CAD.

Alternatives to money orders

While money orders still serve a purpose, the leading money transfer providers are able to arrange the following services online, in-person or over the phone:

Bank transfers
Email transfers
Cash transfers
Digital wallet payments
Airtime top up

Summary

Learning about the ins and outs of a money or postal order is useful knowledge, as you may be faced with a situation whereby money needs to be sent in the mail. If this is the case, money orders are a guaranteed form of payment (unlike cheques) and cannot be used by thieves (unlike cash). However, the downsides of using a money order in Canada includes the maximum limits applied ($999.99), fees incurred (these will add up if regular payments are made) and the lack of availability (most money transfer providers offer alternative methods of payment).

We hope this guide has helped you understand money orders and will consequently help you decide the best way to send money to Canada.

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Contributors

April Summers
April Summers is an experienced Senior Financial Content Editor who combines a wide range of professional skills with her academic background in English literature and journalism. Her professional background includes key positions at the Daily Star, LBB Online, and Entertainment Daily UK, which have sharpened her financial and journalistic expertise.
Fact Checker
Elliot Laybourne
Elliot Laybourne is a seasoned financial professional with a 20-year tenure in investment banking in the City of London. His career includes pivotal senior roles at prominent institutions like ABN Amro, Societe Generale, Marex Financial, and Natixis Bank. Elliot's expertise is particularly notable in commodity derivatives and options market-making. Throughout his career, he has served an impressive roster of clients, including Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and the Pennsylvania State Public School Employees Retirement System.