Money Orders
1 | What is it? |  |
A Money Order is a prepaid negotiable document purchased at a post office for the transmission of funds between a payer and a payee for which a stop payment cannot be placed.
Canada Post Money Orders (direct service and advice service) are available to cash in Canada and select destinations. Depending on the destination, Customers receive a copy of the Money Order or the money will be transferred to the recipient through the postal administration of the destination concerned, together with remittance details (i.e. Advice Service).
The Money Order form consists of:
- a negotiable document with all other proof of purchase and claims or enquiry information printed on the Point-of-Sale (POS) receipt
- added security features which include: a barcode serial number, polarized ink and a security code which is printed at the time of issue by the POS system and is used to verify the validity when a new Money Order is cashed.
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NOTE 1:
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Canadian Money Orders of issuance in CAN or UK currency are peach in colour and contain serial numbers beginning with “1”. |
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2:
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Canadian Money Orders of issuance in US currency are pale green in colour with serial numbers beginning with “0”. |
2 | Purchasing a Money Order | |
Canada Post Money Orders are available in Canadian, US or UK currency:
Customers may buy additional Money Orders when the desired amount exceeds the maximum amount permitted for each Money Order. A separate fee applies to each Money Order.
Customers purchasing a Money Order are required to provide the Sender and Pay To type and Sender and Pay To names at the time of purchase.
A valid piece of government-issued photo ID is required for all Money Orders of $3,000CAN or more (including fees and exchange, if applicable).
The Customer must purchase the resulting Canadian, US or UK currency Money Orders and pay the applicable fees in Canadian currency. Canada Post will purchase US currency from Customers using the Canada Post exchange rate (buying rate).
A fee is charged to the Customer for each Canada Post Money Order issued in addition to the face amount of each Money Order purchased.
The only acceptable methods of payment for a Money Order are cash or debit card (where available).
The Direct Service enables a Customer to purchase a postal Money Order and send it directly to the payee in Canada or certain foreign destinations (designated by fee codes 0, 1 and 2) where the Money Order is cashed at its face value in the issued currency. The Customer can either mail it to the destination or deliver it himself.
The Advice Service is designed for the transmission of funds to destinations that prefer to receive details of the Money Order from Canada Post and complete the remittance process themselves.
The sender in Canada buys a $CAN Money Order, which is mailed to the Canada Post Money Order Exchange Office in Ottawa with details of the remittance.
The Canada Post Money Order Exchange Office converts the $CAN amount to the currency of the destination of payment and sends it to the postal administration of the destination concerned, together with the remittance details.
The Money Order is issued by the foreign destination and sent directly to the payee.
The Customer must complete an Advice of Canadian Postal Money Order (41-015-201) which captures all necessary information to complete the transaction, including the $CAN and the exchange rate. The form and the Money Order are mailed in the pre-addressed envelope to the Money Order Exchange Office where it is processed.
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NOTE 1:
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If the total amount of the Customer transaction (including fees and exchange, if applicable) is $3,000CAN or more (regardless of method of payment) or if multiple transactions in cash are performed by or on behalf of the same individual in a 24 hour period total $10,000CAN or more, post offices must record specific information and complete a Financial Transaction Report. If the transaction seems suspicious, a Suspicious/Attempted Suspicious Transaction Report must be completed. Post offices may refer to the Targeting Money Laundering and Terrorist Financing at your post office training binder and its 2008 Update. |
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2:
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A Customer may purchase a Money Order for $US and pay with $CAN or purchase a Money Order for $US and pay with US currency but they will have to pay the Canada Post selling rate for the face value of the Money Order and will receive the Canada Post buying rate for their US funds. The service fee is charged in Canadian currency. |
3 | Cashing a Money Order | |
A Money Order issued in Canada may be cashed at any post office in Canada without charge. A Money Order payable to a business or other organization may only be cashed at their financial institution.
Money Orders may be cashed by either the payer (sender) or by the payee (identified in the Pay To section of the Money Order).
Customers may be required to provide acceptable identification in relation to Money Order transactions including enquiries.
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NOTE:
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Money Orders are subject to various requirements, including federal legislation such as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations. Visit fintrac.gc.ca for more information. |
4 | Enquiries | |
A Customer wishing to determine the status of their Money Order(s) when the payee claims it was not received or the sender claims to have misplaced or lost the Money Order will need to complete a pre-addressed Enquiry and Application for a Duplicate Postal Money Order available at the post office.
Enquiry and Application for a Duplicate Money Order forms may be submitted to Money Order Services at any time. Canada Post will then investigate the matter.
Subject to the results of Canada Post’s inquiry, a replacement Money Order will be issued at no additional charge, typically no sooner than 50 days from the date of issue of a domestic Money Order, and 90 days from the date of issue of an international Money Order, in order to accommodate transit time.
Enquiries should be directed to:
MONEY ORDER SERVICES
CANADA POST
2701 RIVERSIDE DR STN 25
OTTAWA ON K1A 0B1
For enquiries, call 1.800.563.0444.
5 | Pricing Information | |
To obtain information on pricing, see Canada Post Prices.
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