Money Order Costs
| Where to Buy | Fee | Maximum Amount | Currency Available |
|---|---|---|---|
| Canada Post | $7.50 | $999.99 | CAD and USD |
| RBC | $7.50 | $999.99 | CAD |
| TD | $7.50 | $999.99 | CAD |
| CIBC | $7.50 | $999.99 | CAD |
| BMO | $7.50 | $999.99 | CAD |
| Scotiabank | $7.50 | $999.99 | CAD |
| Western Union | $5.00–$10.00 | Varies | CAD, USD, others |
| 7-Eleven | $2.99–$5.99 | $500 (varies) | CAD |
How to Buy a Money Order
| Step | Details |
|---|---|
| 1. Go to a Canada Post outlet or bank | Bring cash or debit card (some locations require cash) |
| 2. Request a money order | Specify the exact amount |
| 3. Pay the amount + fee | $999.99 max + $7.50 fee = $1,007.49 total |
| 4. Fill in the payee name | Write the recipient’s name clearly and accurately |
| 5. Fill in your name and address | Sender information (for tracing if needed) |
| 6. Keep the receipt/stub | This is your proof of purchase for tracing or refund |
| 7. Send or deliver the money order | By mail or in person |
How to Cash a Money Order
| Method | Details | Processing Time |
|---|---|---|
| Deposit at your bank | Mobile deposit or in-branch; treated like a cheque | 1–5 business days hold |
| Cash at Canada Post | If issued by Canada Post; bring valid ID | Immediate (up to $999.99) |
| Cash at issuing bank | If issued by a specific bank | Immediate |
| Cash at cheque-cashing store | ID required; may charge a fee (3–10%) | Immediate |
Money Order vs Other Payment Methods
| Feature | Money Order | Bank Draft | Certified Cheque | Interac e-Transfer |
|---|---|---|---|---|
| Maximum amount | $999.99 | Unlimited | Unlimited | $3,000–$25,000/day |
| Cost | $7.50 | $7.50–$10 | $10–$25 | $0–$2 |
| Needs bank account | No (cash) | Yes | Yes | Yes |
| Traceable | Yes (receipt) | Yes | Yes | Yes |
| Can be cancelled/refunded | Yes (with receipt) | Yes (with receipt) | Yes | Auto-deposit: no |
| Guaranteed funds | Yes | Yes | Yes | Yes |
| Best for | Paying bills, rent, small purchases | Real estate, large payments | Legal/official payments | Person-to-person, daily use |
When to Use a Money Order
| Situation | Best Payment Method | Why |
|---|---|---|
| Paying rent (landlord requires) | Money order or bank draft | Guaranteed funds; proof of payment |
| Buying from a private seller online | Money order | Safer than cash for mail transactions |
| You don’t have a bank account | Money order | Can buy with cash |
| Government fee or application | Money order or certified cheque | Often required for official payments |
| Sending money by mail | Money order | Safer than sending cash |
| Large purchase (home, car) | Bank draft | Unlimited amount; guaranteed |
| Everyday person-to-person | Interac e-Transfer | Fastest, cheapest, most convenient |
Fraud and Safety Tips
| Tip | Details |
|---|---|
| Only accept money orders from known issuers | Canada Post, major banks, Western Union |
| Verify a money order before depositing | Call the issuing authority with the serial number |
| Watch for overpayment scams | Scammer sends money order for more and asks for “change” back |
| Keep your receipt/stub | Required for tracing, cancellation, or refund |
| Don’t accept money orders from strangers for online sales | Use Interac e-Transfer or cash instead |
| Money orders can be counterfeited | If you’re unsure, verify before releasing goods |