We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is the Rationale Behind a Money Order Limit?

By G. Wiesen
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The precise reason for a money order limit typically depends on the business or agency responsible for issuing the money order. In many places, including the US, there is not a strict legal reason for a limitation. If a business wishes to issue money orders of hundreds of thousands of dollars, they likely could do so. This is not typically done, however, since a money order limit is often set to try to prevent fraudulent money order claims in very high amounts.

Fraud is one of the biggest reasons a business will usually set a money order limit. Over the past few decades, forgery of money orders and changing names on money orders has become an increasingly pervasive issue. Since a money order is paid in cash at the time of purchase, there is little a person can do to deal with fraudulent claiming of a money order. To reduce the damage done to businesses by fraudulent money orders, a money order limit is usually set.

Since the money order limit is set by the business or agency that issues money orders, the limit is likely to vary by location. This can be a regional standard of value, or a particular business may set a limit that is observed at various locations for that business. The lowest limitation for a money order will typically be $100 US Dollars (USD), since anything below that is simply impractical. Many places will set a money order limit to $500 USD, which is still fairly high but not high enough to cause serious problems.

The United States Postal Service (USPS), one of the leading issuers of money orders, has set a money order limit of $1,000 USD for domestic money orders, as of 2010. For international money orders, the limit is set to $700 USD. Of course, these limits are only set to individual money orders and multiple money orders can be purchased at once, though a government-issued photo ID is required for purchasing over $3,000 USD in money orders in a single day.

One thing to consider, with regard to how a money order limit is set, is what businesses are willing to cash money orders. Just because a business will issue a money order, does not necessarily mean it will also cash a money order or not limit how many money orders it will cash. For cashing a money order, it is often easiest to use a USPS location, especially if the money order was issued by the Postal Service. Many banks will not cash a money order, due to issues with fraud and fake money orders being processed by banks in the past.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.