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Banking
Term 609 of 1038
1 min readTwo voicesBanking

Money order.

A money order is a prepaid paper payment you buy with cash up front, used to pay someone when a personal check or cash is not an option.
Verified June 2026 · Source: United States Postal Service
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Money order
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In plain English

A money order is a paper payment instrument you pay for in advance, usually with cash or a debit card, so it cannot bounce. You buy it for a set amount, write in who it is payable to, and hand or mail it to them. Money orders are sold at the post office, many banks, and stores like grocery and check-cashing shops, which makes them useful for people without a bank account. They are capped at a relatively low amount per order, so they suit small bills, rent, or sending money safely by mail rather than huge purchases.

Most useful ages
16 to 70

01Why it matters

A money order lets you make a guaranteed payment without a checking account or without exposing your bank details, and unlike mailing cash, a lost money order can often be traced or replaced.

02The math, step by step

To mail rent to a landlord without sharing your bank info, you buy a money order at the post office. USPS caps a single domestic money order at $1,000, and as of June 2026 the issuing fee is $2.55 for amounts up to $500 and $3.60 for $500.01 to $1,000. You fill in the landlord's name and keep the receipt in case it goes missing.

03What this is NOT

Do not confuse with a cashier's check

A money order is not a cashier's check. Money orders are cheaper, sold in many everyday places, and capped at low amounts; cashier's checks come from a bank, usually cost more, and can be written for much larger sums.

04Receipts

Every figure on this page is sourced to a primary document. Tap to open the original.

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The Decoderby ClearMoneySchool

Plain-English answers from our glossary. Receipts included. Never advice.

Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice

Last reviewed June 11, 2026 · Reviewer Joseph Citizen, Founder