Got a torn, smudged, or water-damaged money order? Here’s exactly when it can still be cashed, when it must be reissued, and how to file a claim if the serial number isn’t readable. Follow the steps below so you don’t lose the funds.
What Counts as a “Damaged” Money Order?
A money order is considered damaged if any of the security or payment fields can’t be verified. Common examples:
- Tears or missing pieces that remove parts of the serial number or MICR line.
- Water/ink stains that blur the payee, amount, purchaser, or signature areas.
- Illegible serial number or barcode, or written-over payee/amount fields.
- Alterations (cross-outs, white-out, erasures) to payee or amount.
Good news: Light creasing, small edge tears that don’t remove information, or normal folds are usually okay at banks and issuer locations.
Can You Still Cash a Damaged Money Order?
It depends on the issuer and what’s damaged. Use this quick guide:
- USPS money orders: Take the document and the purchase receipt (stub) to a post office. If key details are readable or the serial can be verified, USPS may pay it. If not, they’ll advise reissue/claim steps.
- MoneyGram / Western Union: Go to an agent location with the money order and receipt. If the agent can confirm serial and integrity, they may cash it; otherwise they’ll process a replacement request.
- Bank-issued (Chase, Wells Fargo, etc.): Visit the issuing bank. If verification passes and info is legible, they can cash or replace. Non-customers may face holds or be redirected to their own bank.
If the serial number is unreadable or a major field is missing, you’ll likely need a replacement or a formal inquiry.
Step-by-Step: Replace or Cash a Damaged Money Order
- Find your purchase receipt (stub): It shows the serial number—the fastest way to verify ownership and value.
- Go to the issuer:
- USPS → any post office
- MoneyGram/Western Union → any agent location
- Bank-issued → branch of the issuing bank
- Bring valid ID: Driver’s license, state ID, or passport.
- Explain the damage: Present all pieces if it’s torn; avoid taping over security elements.
- Pay any small processing fee: Issuers may charge a modest reissue/inquiry fee.
- Receive cash or a replacement: If verification succeeds, they’ll either pay it or issue a new money order.
No Receipt or Serial Number? Here’s What to Do
- USPS: Request a status/inquiry using PS Form 6401. Processing can take a few weeks; USPS will confirm if it was cashed or eligible for replacement.
- MoneyGram: File an inquiry at an agent location or online with any proof of purchase (bank statement showing the amount, date, and store).
- Western Union: Submit a “Money Order Inquiry” form; provide your best info (approx. purchase date, amount, location).
Tip: A bank statement or card receipt showing the purchase date and amount can help issuers search their system even if you lost the stub.
Special Situations (Read This Before You Go)
- Torn in two pieces: Keep both pieces flat and clean; do not laminate. Bring them together so the issuer can align security features.
- Altered payee/amount: Written-over or crossed-out fields are often rejected—expect to request a replacement, not cashing.
- Already endorsed: Endorse only when instructed. Premature endorsements on damaged items may trigger extra verification or holds.
- Stolen or lost after damage: File a police report if theft is suspected; bring a copy with your inquiry form for faster replacement decisions.
- Bank deposit vs. cashing: Your own bank might accept a damaged money order for deposit with hold instead of immediate cash—useful if issuer locations are far.
When to File a Claim Instead of Cashing
File a claim if the issuer can’t verify authenticity, the serial can’t be recovered, or the item is missing:
- USPS: PS Form 6401 “Money Order Inquiry” (allow several weeks for status/refund).
- MoneyGram: Agent/online claim; typical resolution in about 7–10 business days.
- Western Union: Money Order Inquiry; allow roughly 10–15 business days.
How to Prevent Damage Next Time
- Photograph the money order and stub right after purchase; store the image in your phone.
- Keep flat and dry: Use an envelope or plastic sleeve; avoid wallets and pockets where ink can rub off.
- Fill out carefully: Use dark ink; write only in designated fields—no cross-outs or corrections.
- Delay endorsement: Sign the back only when the cashier/bank instructs you to.
Quick Decision Guide
- Minor wear (folds/creases), all info readable: Try cashing at a bank or issuer location.
- Serial/payee/amount unclear or missing: Go straight to the issuer with your stub and ID—request replacement.
- No stub, major damage, or lost: File an issuer inquiry/claim with any proof of purchase.
Related Resources
Bottom line: Damaged money orders can often be cashed if key details are still readable. When in doubt, bring your ID and purchase stub to the issuer and request a replacement—don’t attempt fixes that could obscure security features.