Damaged Money Orders: Can You Cash or Replace Them? (2025 Guide)

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

  1. Find your purchase receipt (stub): It shows the serial number—the fastest way to verify ownership and value.
  2. Go to the issuer:
    • USPS → any post office
    • MoneyGram/Western Union → any agent location
    • Bank-issued → branch of the issuing bank
  3. Bring valid ID: Driver’s license, state ID, or passport.
  4. Explain the damage: Present all pieces if it’s torn; avoid taping over security elements.
  5. Pay any small processing fee: Issuers may charge a modest reissue/inquiry fee.
  6. 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.