An international money order is a paper that can be used to transfer money outside Canada. While an international money order is considered more secure than a cheque, there are other quicker and more secure ways to send money overseas.
What is an international money order?
Similar to a cheque, a money order is a paper document used as a method of payment. However, unlike a cheque, the funds for a money order are withdrawn from the payer’s account in advance. This means you can’t send someone a money order unless you have the funds to cover it, so a money order can never “bounce.”
You can’t get a money order in Canada for more than $999.99, but you can get multiple money orders if you need to send more.
An international money order operates exactly the same way as a domestic money order. The main difference is that international money orders are accepted and cashed in other countries besides Canada, whereas domestic money orders can only be cashed in Canada.
Pros
Can only be cashed by the person or entity named on the money order, so it’s safer than sending cash.
Trackable through the issuing institution
Usually, you don’t need a bank account to send or receive a money order
Paid for in advance, so it won’t ever “bounce” like a cheque
Cons
Usually, both the sender and receiver must pay a fee
Has to be physically delivered to your recipient, which significantly increases the transfer time
Cancellation and refunds can be expensive and take upwards of 30 days
May not be universally accepted as a form of payment in every country
Is using an international money order your best option?
If you want to save on fees, a money order may not be your best option for transferring funds. You can usually get cheaper international money transfers through a digital transfer service like WorldRemit, Xe or Remitly.
While big banks often charge higher fees for international money transfers, you might find very competitively-priced money transfer services offered by digital banks like Simplii Financial (owned by CIBC).
Another reason you might want to reconsider using a money order is that it has to be physically issued, mailed, received and taken to a financial institution to be cashed. If you’re looking for instant or same-day transfers, there are faster ways to send money.
One of the advantages of sending a money order is that it’s considered a fairly safe money transfer method. This is because money orders are trackable and can only be cashed by the recipient named on the document (ID will be required to verify the recipient’s identity). This means that unauthorized recipients won’t be able to get their hands on your funds even if they intercept a money order in transit.
However, most digital money transfer services also offer tracking and can transmit funds directly to bank accounts or mobile wallets, eliminating much of the risk and hassle of physically handling money orders or cheques.
Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
In Canada, you could pay anywhere between $7.50 and $9.95 per money order. Rates are typically higher at major banks, which often charge between $9.00 and $10.00 for a money order.
If you purchase a money order from Canada Post, you’ll pay closer to $8.00. Note that Canada Post only sells domestic (within Canada) money orders.
In contrast, some digital money transfer services charge less than $5.00 per transfer. Some even offer $0 transfers, although you may not get a very competitive exchange rate.
How to fill out a money order in Canada
Money orders in Canada are not filled out by hand. Instead, you give the appropriate information to the bank teller or Canada Post clerk, who types it into a computer and prints our your money order. Here’s how to get a money order:
Verify the acceptability of money orders in your destination. International money orders will not be accepted everywhere. Before you purchase one, make sure your recipient will be able to cash it at a local bank, post office or other location.
Provide the sender’s information. Typically, you need to provide your name. Other details like your address may also be required.
Provide the receiver’s information. Because your recipient may need to show ID when cashing the money order, write their name exactly as it shows on their ID to avoid any complications. Some international money orders require you to fill in the recipient’s address in addition to their name.
Provide a memo if necessary. If you’re paying a bill, populate the memo with your account number and purpose of the payment. If you’re sending money to family, it may be helpful to include your name and address in the memo section.
Sign the money order. International money orders without a signature may be rejected, so don’t send your money order without signing it first!
What to do after you fill out your money order in Canada
After your money order is printed, be sure to:
Keep your receipt.
Ask your mailing service about the approximate time frame for delivery.
Double check the money order to make sure it includes all the necessary information. Be extra cautious about spelling. Have the bank or Canada Post agent verify that the money order has been printed correctly.
How do I cash a money order in Canada?
Money orders are cashed similarly to cheques. But the places where a money order can be cashed may be limited depending on the destination country. Here’s how to cash an international money order:
Find a bank or business that cashes money orders. Before arranging to have an international money order sent to you, verify that there’s a bank or post office nearby where you can cash it.
Endorse the money order. Sign the back of the money order, so it can be cashed. But hold off signing until you’re right about to hand it over to the teller or clerk.
Provide ID. The name on your personal ID needs to match the name on the international money order. You’ll need valid government-issued ID like a passport or driver’s license.
Pay the receiving fee. Most banks charge a fee for cashing a money order. You may be able to have these charges deducted from the amount of the money order. Ask the teller or cashier if this is an option.
Count your cash to make sure you’ve received the right amount. Verify that the amount you’ve been given matches the amount on the money order before walking away from the counter.
Bottom line
Sending an international money order may not be the most common method of transferring funds, but you may want to consider this option if you’re looking for a safer alternative to cheques or a cheaper alternative to bank wire transfers.
That being said, you can get very competitive exchange rates and low (or no) transfer fees from many online money transfer services. Check out our guide to international money transfers to learn more.
Frequently asked questions
Usually, you can’t get a money order worth more than CAD $999.99. But you can get multiple money if you need to send more. Be aware that this will result in multiple fees.
Yes. Each money order comes with a unique tracking ID (found on your receipt) that can be used to verify when the money order has been cashed. Check the status of your funds by providing your ID to the agency that issued your money order. Learn more about tracking money transfers here.
No. Canada Post used to issue both domestic and international money orders, but now only offers domestic money orders. To get an international money order in Canada, you’ll need to visit one of the major banks.
You cannot cancel a money order if it has been cashed already. If it is still in transit, you may be able to call the agency that issued the money order and cancel it for a refund.
A lost or stolen money order can be replaced, but you’ll probably have to pay another fee to get the money order reissued. Report the stolen money order to the issuing bank or post office. Consider sending funds directly to your recipient’s bank account through an online money transfer service instead to avoid any future disruptions.
You should stay away from sending money orders to, or cashing money orders from, people you don’t know. Very often, scammers use various money transfer methods to get cash from unsuspecting people. Learn more about about money transfer scams in our guide.
Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family. See full bio
Zak Killermann was a technical publisher at Finder who specialized in currencies and investing. Zak’s expertise was in breaking down technical finance concepts into approachable, digestible nuggets of information. See full bio
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