A money order is a secure way to send money through the mail. To get one, visit a bank or Canada Post location with your cash or debit card, provide details for the intended recipient, and pay a small fee.
Money orders are helpful for people making large purchases, as they’re safer than cash and cheques in the mail. They’re also easier to buy than certified or cashier’s cheques.
We’ll explain the basics of money orders, provide examples of situations where you may want to use one, and highlight a few alternatives to consider (like Interac e-Transfer).
Key Takeaways
- A money order is a secure financial document that's used as an alternative to cash or cheque.
- You can put up to $999.99 on a single money order in Canada.
- Canada Post is the most popular place to buy money orders, but you can also get them from banks and credit unions.
- Scotiabank charges the lowest fee for purchasing a money order.
What is a money order?
A money order is a piece of paper that represents guaranteed money, and it’s issuable and cashable by anyone at any Canada Post location and most bank branches.
Money orders are a safer alternative to cheques and cash for someone who needs to send a large amount of money to a specific recipient, either in person or by mail.
Here are some fast-facts about money orders:
- Only the intended recipient can access the funds – unlike cash, which can be stolen.
- None of your personal information appears – unlike personal cheques, which may show your address.
- The recipient of a money order can cash it at a Canada Post location or bank, even if they don’t have a bank account.
- To get a money order, you must visit a bank or post office in person. You’ll put down the cash for the order in full, and then pay a fee around $8 or $9.
How to get a money order in Canada
Money orders must be purchased in person – they cannot be purchased online.
You will need:
- Cash or a debit card
- Valid government-issued photo ID
It’s important to remember: The maximum amount you can purchase a money order for is $999.99.
If you need to send more than $1,000, you can purchase multiple money orders but you'll be charged a fee for each one. In this case, it may be more efficient to go to a bank and get a bank draft or certified cheque – which both have higher limits.
Where to get a money order in Canada
You may purchase a money order in Canada in person at either Canada Post or at most major bank branches like BMO, TD, CIBC, and Scotiabank.
Several different currencies are available if you’re getting a money order from a bank, but Canada Post is more limited:
- Canada Post: Canadian dollars
- Banks: Canadian dollars, U.S. dollars, Euros, and British pounds
What does a money order cost?
The fees you'll pay to buy a money order vary by location, ranging from $7.50 to just under $10. Canada Post has its own set fee and each bank has its individual requirements too.
Here's a look at the fees charged by Canada Post and a few big banks:
| Issuer | Fee |
|---|---|
| Canada Post | $8.50 |
| BMO | $9.95 |
| TD | $9.95 |
| CIBC | $9.95 |
| Scotiabank | $7.50 |
| National Bank | $9 |
| Tangerine | $10 |
| EQ Bank | Not available |
| Simplii | $7.50 |
| Wealthsimple | Not available |
| Laurentian Bank | $8.50 |
| Canadian Western Bank | $9.50 |
You may want to note that TD seems to use the terms "money order" and "bank draft" interchangeably, whereas other banks treat these as separate items with individual fees and guidelines.
We also couldn't find specific information on money orders from RBC, but you can get bank drafts there for $9.95.
How to cash a money order
To cash a money order, bring it to Canada Post or your bank along with a government-issued photo ID. There is no fee to cash a money order in these institutions, but you do have to show up in person.
Are you outside the country and need to cash a money order? Look for one of your bank's branches in your area. If they don't have any branches near you, look for a financial institution that your bank has an agreement with – you should be able to cash it there.
Are you cashing multiple money orders totalling $10,000 or more in a 24-hour period? Be aware that these transactions will be recorded and submitted as Financial Transaction Reports to the Canadian authorities. This aims to track potential money laundering attempts, other forms of fraud, or transactions that break terrorist financing laws. If anything is deemed suspicious, you could face consequences.
When to use a money order
Here are a few example situations where using a money order can be better than a cheque, Interac e-Transfer, or other payment method:
| Situation | Details |
|---|---|
| Sending a payment through the mail | * A safer, more secure, and guaranteed payment option vs. cash or cheques, which do not mail well. * If it does get lost, stolen, or destroyed en route, the guarantee means it can be replaced. |
| Buying from a seller who requires a money order | * The seller may not have a bank account, or simply not want to deal with credit card processing fees, etc. * This guaranteed form of payment puts their mind at ease. |
| You don't have a bank account | * Money orders can be obtained from any post office location. |
| Making a large purchase in-person | * It's safer than carrying around large amounts of cash. * The recipient doesn't have to physically count and make sure all the funds are there. |
| Prefer to avoid using a cheque | * Money orders don't display your financial information like cheques do. |
| Require a 3rd party receipt for the value of the transaction | * Each money order comes with a receipt and tracking number so you can see when it's cashed. * It prevents the recipient from disputing the amount you gave them. |
Pros and cons of money orders
Check out these important security, budgetary, and efficiency considerations for money orders before you decide.
Pros of money orders
- Can be issued in one country and cashed in another
- Comes with a receipt and serial number
- Does not include personal information like address or account number
- Can usually be replaced for a fee, if lost
- Can be cashed by the recipient at a local bank
- Can be deposited into a bank account for free
Cons of money orders
- Can incur fees, both for the buyer and recipient
- Harder to track than cheques
- Limited to $1,000 for domestic money orders
- May take longer for money to arrive
- Money orders can be fake
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.Are money orders safe?
A money order is a safe way to send money through the mail. It can be purchased from reputable sources, including at any Canada Post postal outlet and most major banks in Canada.
On top of that:
- The money order can't be cashed by anyone other than the intended recipient.
- You don't need a bank account to get one.
- There's no need to worry about online hackers or mail thieves intercepting the funds.
Money order security features include the following characteristics to deter counterfeiting:
- Barcode serial number
- Watermarks
- UV light features
- Polarized ink
- Security code that's verified when the money order is cashed
You'll also need to provide information about both you (the sender) and the receiver to ensure that the money order is going to the correct person. Both the sender and receiver also need to provide identification information when they send or receive it.
Alternatives to money orders
Money orders are a useful tool, but there are lots of other ways to send and receive money, including convenient online options like Interac e-Transfers and international money transfers. Of course, each alternative has its own fees, features, and limitations.
Here's a list of a few money order alternatives and their important details:
| Service | Fees | Features | Limitations |
|---|---|---|---|
| Money orders | * $7.50 - $10 | * Can only be cashed by the receiver * Doesn't require a bank account (Canada Post only) | * Limited currencies * Can only be cashed with Canada Post or the bank that issued it |
| Cash | * None (can be subject to transaction fees depending on your account) | * Anonymous | * If lost, stolen, or destroyed, you're out of luck – there's no getting it back * With no tracking or guarantee, there's no proof that it was received |
| Interac e-Transfer | * Banks usually charge a small fee to send (many do include them for free), but there's no fee to receive the money | * Secure * Inexpensive * Fast | * Cannot send money internationally * Both sender and recipient need bank accounts |
| International money transfer | * Fees for both sending and receiving, which vary depending on the service you use | * Secure * Relatively inexpensive * Most transfers are relatively fast, but they can take up to a few days | * Often done through a third-party company (something other than your bank) * Fees vary widely |
| Wire transfer | * Fees can be very high compared to other services | * Very secure, as transfers happen across banking networks * Can take up to 2 days to process | * Wire transfers are generally used for large sums of money, which is why fees are relatively high |
| Bank draft | * Similar fees to money orders, although some premium banking packages include these for free | * Similar to a money order in that it is a physical document * No maximum amount for a bank draft | * Irrevocable once delivered to the recipient * Can't be sent by regular mail due to risk of loss * Banks may put a hold on some or all of the funds until the draft is fully processed |
| Certified cheque | * Fees vary between banks, usually between $5 and $15 (some accounts offer them for free) | * Bank certifies that the money for the cheque was in the account at the time * Generally secure, but fake certified cheque scams have occurred | * Funds are held by the issuing bank so it can take a few days for the full amount to be available * No longer available from all banks |
| Regular cheque | * Usually free to send and receive | * Most chequing accounts come with free cheques | * Funds are not guaranteed, so cheques can bounce * Can take a few days to clear * Contains sensitive bank information, such as your account number * Many merchants will not accept personal cheques, due to the risk of fraud |
| Peer-to-peer payment apps | * Fees vary, but usually are a percentage of the amount being transferred * Will likely charge higher fees if using a credit card | * Convenient * Secure * Fast | * Limits to the amount you can transfer, depending on the service used * Transfers out of the service into your bank account can take a few days * Generally can't be used for international transfers |
Each of these options has its own pros and cons to consider. The shining feature of a money order is its security, and the fact a bank account isn't required to get or cash one if you get a Canada Post money order.
However, you are limited in the amount you can send, and where it can be cashed.
Money order vs. cashier’s cheque
Money orders are easier to purchase than cashier’s cheques. You can go to a Canada Post location or a bank branch to get a money order, whereas a cashier’s cheque must be issued by your bank.
Both money orders and cashier’s cheques trigger a fee – but money orders are usually cheaper. This might be $10 to $20, depending on the institution. However, money orders tend to be cheaper than cashier’s cheques and certified cheques because they require less added security verifications.
Both money orders and cashier’s cheques can be bought or cashed by anyone. While some banks require you to have an account to issue a cashier’s cheque, not all do – and anyone with cash can purchase a money order at a bank or Canada Post location. You do not need a bank account or chequing account to cash a money order or a cashier’s cheque.
Both money orders and cashier’s cheques are considered very secure forms of payment, as they don’t include personal information and account numbers like personal cheques. You will get a receipt to help track both money orders and cashier’s cheques.
Both money orders and cashier’s cheques are guaranteed, because they require you to transfer your money to the institution for holding and then the document is issued. This is unlike certified cheques, where the money is kept in your own account (with a hold on it) until the transaction is complete.
Money orders and cashier’s cheques are generally preferred (or even required) for large transactions. In situations like buying a house, personal cheques may not be accepted.
FAQ
What is a money order?
A money order is a type of paper payment that you can purchase at Canada Post or a bank. It's a secure and guaranteed type of payment that can only be cashed by the person whose name is on it.
Is a money order susceptible to fraud?
Unfortunately, yes. Money order scams usually target businesses and merchandise, but buyers can be scammed as well. Always make sure to verify the details on the money order and confirm that where you're sending it is legitimate.
How much does a money order cost?
Money orders cost between $6.50 and $10, although these fees vary depending on the location where you purchase it. Usually, there are also currency restrictions and a maximum limit that the money order can be made out for.
How long does it take for a money order to clear?
In Canada, you can cash any Canadian money order at any post office and get your money immediately. If it's issued by a bank, you can cash it at a branch location or a partnering bank location.
Can I get a money order online?
You can't purchase or cash a money order online – you must purchase and cash it in person at the post office or bank. This is mostly for security purposes, as the issuer will need to fully verify your identity.
Is a money order the same as cash?
Money orders are not the same as cash. A money order is replaceable if lost or destroyed before being cashed, plus it's more secure than cash since ID is required when cashing them. This makes them useless if stolen.
Can I buy a money order with my credit card?
No, you're not able to buy a money order in Canada with a credit card. This is because money orders are a form of guaranteed payment and therefore must be purchased either with cash or a debit card.
What is the maximum amount for a money order in Canada?
The maximum amount of money you can send using a money order in Canada is $999.99. If you need to send more than that, you can purchase multiple money orders – and you'll pay a fee for each one.
What is a money order in Canada?
A money order is a paper payment similar to a cheque but it requires the sender to pay upfront so the payment is guaranteed. Money orders in Canada are most often used to send money securely through the mail.
How much does a money order cost at Canada Post?
A money order at Canada Post costs $8.50, and the total limit amount for each money order is $999.99.
How much does a $1,000 money order cost?
The total limit amount for a money order is $999.99 at Canada Post, and this will incur a fee of $8.50. If you need to send more than $1,000, purchase multiple money orders – and pay multiple fees.
Can you buy a money order with a credit card?
No, you must have cash or a debit card to purchase a money order in Canada. All fees must be paid in Canadian currency.
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