Money Order Cost

One of the most convenient tool of money transfer, money order is a written order for the payment of a stipulated sum of money to a particular individual. Not many people out there need an introduction to what is a money order. It works as a prepaid check which can be cashed at any post office or bank in the United States. Money orders were introduced in Great Britain in 1792. The system was introduced by a private firm, and therefore the money order price was quite high, owing to which it took quite sometime for this system to get rooted in the society. Over the period of time, the postal services took over and the prices were slashed by a significant extent. Other than the security promised by the postal services which operate the system and common knowledge of how to fill out a money order to transfer money in time, the fact that money order cost are quite trivial also add to its popularity.

Money Order Cost in the United States

In the United States, the cap for a domestic money order is different than that of the international money order. You can purchase money orders from various sources, including post offices and grocery stores. The cost of a money order depends on the total sum of money to be transferred and the type of money order you want to send. Given below are the details of the domestic as well as international money order prices in the United States.

Domestic Money Order Cost
Other than the United States Postal Service, money orders are also sold by a few banks and other convenience stores in the United States of America. The maximum amount of money allowed for domestic money orders in the United States is $1,000. Even though separate money orders amounting to more than $1,000 can be purchased in a single day to cover your or an individual's financial need. However, purchases exceeding $3,000 require a current government-issued identification with a photograph of the sender. These money orders can be purchased by cash payment or debit card payment, and cashed at any post office in the country. A fee of $1.10 has to be paid for purchasing a money order to transfer $0.01 to $500.00, and a fee of $1.50 has to be paid for purchasing a money order to transfer $500.01 to $1,000.00. There also exist postal military money orders which are issued by military facilities, and have a money order fee of $0.30. More importantly, these money orders are valid for an unlimited period of time.

International Money Order Cost
The United States Postal Service also provides the facility of sending international money orders to 30 countries across the world. Even though the maximum amount of money that can be transferred by a single international money order is $700, you can avail the facility of sending more than one money order in a single day. The total amount, however, should not exceed the $10,000 limit. These money orders, too, are available at all the post offices in the United States. The processing fee for a single international money order is $3.85. These money orders can be cashed at various banks and post offices in other countries. Each of the US money orders have a unique identification number, and it is possible to trace these money orders on the basis of this unique number. While the list of countries accepting direct international money order is 30 as of now, new additions are going to be accepted sometime in near future.

I hope, this was all the information you needed to know about the domestic as well as international money order cost in the United States. Going through the money order vs cashiers check comparison, you will also come upon the significant difference in the costs incurred in both the methods. The fact that cashier's check is costlier than money order also plays a crucial role in the rising popularity of money order. According to the data compiled by Federal Reserve, around 889 million money orders, amounting to a gross transaction volume of $145 billion, were purchased in the United States in 2005. This is perhaps the best example of the success of money orders as a tool of money transfers. Even though newer methods of money transfers are getting quite popular, this veteran in the field has been quite successful in holding its ground.