If I mail a money order via FedEx and it's lost, will I be refunded the MO amount?

I’m thinking about using FedEx instead of USPO for mailing USPO money orders to sellers. If it’s lost, I understand the USPO will reimburse the total money order amount after a 60-day wait. Is this reimbursement because it’s a USPO money order, or because it’s mailed within the USPO system? In other words, will FedEx reimburse the total amount of the money order if I show proof I paid for it?

Sorry for the clumsy description.


Maybe @pazza knows the answer, but IMO this is a question for FedEx and USPO.

Ok, thanks. I called FedEx 2x and one rep said yes the MO is refundable and the second said it’s not…!

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Hi @Borque sorry I am not sure of the answer to this.

I am aware that you can send with insurance with both:

USPS cover $50,000 max: https://faq.usps.com/s/article/What-are-the-Limits-for-Insuring-Cash-and-Checks

Not sure about FedEx

Thanks. It looks like cash is insured but not checks. Since a MO is considered cash (I think), I wonder if it matters who mails it, the USPO or FedEx, regarding a loss payout.

Hi Pazza, thanks. I asked the clerk about insuring it, and she said if it’s an item, like a product, they will insure it, but if it’s a money order they won’t. (I’m not sure I understand that. I thought if I could insure cash, I could insure a money order.)

Regarding the sender information on the MO for buying BTC:

The USPO site says “The purchaser must complete the money order and customer’s receipt by filling in the names and addresses of the payee (seller, recipient) and purchaser (me, sender, buyer).” The USPO clerk said if the sender info is left blank, it won’t be insured against loss, and that anyone who fills in the sender info can also cash it. I thought they only need the MO serial number to insure it.

Thanks again.

This is simple to answer. If you don’t feel I’ve satisfied your inquiry, please elaborate more on the problem and I can also clarify further.

You do not ask for insurance on a US Money Order. If you make it payable to someone (not mailed out as blank), then only that person can redeem it. Whether they present it at a bank or at a post office, they will show ID to prove it was made payable to them and not someone else.

It doesn’t matter who delivered the money order on your behalf. If it is lost, stolen, or destroyed, the USPS will refund you. Just have that money order’s receipt stub available for presentation to prove it was you that paid for that money order.

You said you already understand there is a 60 day waiting period from the date the money order was printed before a refund will be considered by USPS. They will have you fill out a form, giving them the address where they will mail you your refund. If they deny the refund, saying their system shows it has been redeemed, then you know the recipient did get the money because you made it payable only to them so a thief could not cash it.

Thank you mkuraja for clarifying, I appreciate the information. I meant to ill intent. I’m new to this and often don’t express exactly what I mean.

What’s confusing is the clerk saying that if the sender section is left blank, and someone fills it in, then that person can cash it, which makes no sense.

It’s good to know I can ship it FedEx and get reimbursed with only the MO receipt. On two trades a couple of weeks ago, I mailed the MO Priority 2-3 day and it took two weeks to arrive.

@Borque consider this attack vector - you send the MO made payable to Paul and leave Sender field blank. Peter intercepts your MO in transit and writes in his own name as Sender. Peter takes it to the Post Office, claiming he was the one to buy it, not you. He tells USPS he decided against paying Paul and wants a refund. He says he lost the receipt stub but doesn’t need it because he’s presenting the unspent MO itself, showing it with his name as Sender. This could persuade the Post Office clerk to believe it was him that bought it in the first place, and therefore refund the money to him.

If you don’t want to disclose your identity on the MO and that’s why you’d send it with no specified Sender written on it, you could write the Recipint’s name as Sender also. To the bank or post office, the MO seems to be the recipient paying himself which is a normal use case. For example, my bank has no location in my town. So, to make a cash deposit, I use the bank’s mobile app to remote-deposit a US Money Order made payable to me, by me.

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Thanks for the explanation, good to know.

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