How do international money orders work?

Sending money orders overseas may not be your best option when sending money internationally.

An international money order is a way to send money to someone overseas, normally via a postal service or bank.

However, since the rise of money transfer services, international money orders are no longer really offered in Australia.

In Australia, international money orders were normally handled by Australia Post, but instead it now offers international money transfers via Western Union.

You can compare your other options for sending money internationally below.

What is an international money order?

A money order is effectively a type of cheque that represents as a international bank-to-bank transfer.

Unlike a regular cheque, you pay for the money order upfront. The recipient can then cash in the money order with their own bank or post office, or sent directly to their bank account.

How does an international money order work?

Say you want to send US$100 to someone in the United States.

You would request an international money order for this amount. You pay the equivalent value in Australian dollars and the money order is then sent to the recipient in the US, normally by mail.

The recipient then cashes the money order at their bank or post office.

Why use an international money order?

There are a few potential benefits to using an international money order:

  • It can be safer than mailing cash.
  • The recipient doesn't necessarily need a bank account.
  • The order can't bounce like a cheque as it's paid for in advance.
  • You can track the status of the money order internationally.

However, with the advent of international bank orders and dedicated money transfer services, international money orders are likely to be a much slower and more expensive option.

Compare money transfer services

1 - 25 of 27
Product AUFMT Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Revolut logo
Within minutes
$0
Sign up and get a AUD$15 top-up. For new customers only. T&Cs apply.
Send money with great rates and low fees in 30+ currencies. Plan fees apply.
TorFX logo
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000. Same-day transfers between AUD and NZD (under $100,000).
OrbitRemit logo
Within minutes
$0-$4
Get a $0 fee and special promotional rate on your first transfer with OrbitRemit.
OrbitRemit sends to over 45 countries for a flat fee and transparent exchange rate.
Xe logo
Within minutes
$0
Xe has fast transfers, low fees and a range of foreign currency tools. Send money to 200 countries in 100 currencies.
Wise (TransferWise)
Best Rated Brand
Wise logo
Within minutes
From 0.43%
Wise uses the mid-market rate and transparent fees to help you send money in 50+ currencies.
TorFX logo
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000. Same-day transfers between AUD and NZD (under $100,000).
OFX logo
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Airwallex logo
Within minutes
$0
Customers can take out a free 1-month trial of an Airwallex Grow Plan and unlock a 50% discount on the plan for 6 months.
Streamline global payments across 150+ countries with fast settlements and competitive rates in over 60 currencies.
Xe logo
Within minutes
$0

Xe has fast transfers, low fees and a range of foreign currency tools. Send money to 200 countries in 100 currencies.
TorFX logo
24 hours
$0
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.
Xe logo
24 hours
$0
Xe has fast transfers, low fees and a range of foreign currency tools. Send money to 200 countries in 100 currencies.
OFX logo
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Send Payments logo
24 hours
$0
Send provides no Send payments fee transfers via its 24/7 multi-currency payments platform with real-time quotes.
Remitly
Best Rated Brand
Remitly logo
Within minutes
From $0
Remitly has quick, affordable transfers around the world, with both express and economy options.
Rocket Remit logo
Within minutes
From $0 to $5
Send money instantly to friends and family in over 45 countries using just your mobile number.
MoneyGram logo
Within minutes
From $1.99
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
SingX logo
Within minutes
From 0.5%
SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.
Send Payments
Send Payments logo
24 hours
$0
Send provides no Send payments fee transfers via its 24/7 multi-currency payments platform with real-time quotes.
Qantas logo
Within minutes
$0
Earn up to 200,000 bonus Qantas Points on your first currency conversion. T&Cs apply.
Set up accounts in 11 different currencies and get rewarded for global business payments by earning Qantas Points.
OFX logo
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
WorldFirst logo
24 hours
From $0
Open bank accounts in Australia, the UK, US, Canada, Japan and Europe. Send and receive funds with zero fees for large sums, including same-currency supplier payments.
Revolut logo
Within minutes
$0
Revolut allows your business to move money around the world quickly and cheaply with 25+ currencies and no maximum limit transfers. Plan fees apply.
Send Payments logo
24 hours
$0
Send provides no Send payments fee transfers via its 24/7 multi-currency payments platform with real-time quotes.
MasterRemit logo
Within minutes
From $0
Send money in minutes at competitive exchange rates to the Middle East, Africa and South Asia.
View details
Instarem logo
Within minutes
From 0%
Get zero fees on your first transfer to India, Malaysia, Thailand, Nepal, the Philippines, the US and the UK. T&Cs apply.
50% off transfer fees on your first transfer to all other destinations with minimum transfer of $200 and maximum of $7,999.
View details
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How to use an international money order in Australia

In Australia, international money orders were traditionally available through Australia Post, but are no longer offered.

Instead, it offers an international money transfer service via Western Union.

Using this service you can send money to more than 200 countries directly to your recipient's bank account, mobile wallet or as cash that they can pick up from a Western Union agent or store.

What are the drawbacks of using an international money order?

An international money order is rarely the cheapest or easiest way to send money overseas.

There are a few key drawbacks to using an international money order, especially in comparison to a money transfer service.

These include:

  • You and your recipient may both need to pay fees.
  • There's normally Low sending limits – it's a hassle to send more than $10,000 with a money order.
  • You likely won't get a particularly competitive exchange rate.
  • Refunds or cancellations can be expensive and time-consuming.
  • Money orders may not be accepted in some countries.
  • The money order often needs to be sent physically.
  • The recipient may need to provide ID in order to cash the money order.

How do I cash an international money order?

Money orders can be cashed in the same way as a cheque, but cashing locations may be restricted depending on where you live.

Follow these steps to cash an international money order:

  1. Find a location. Before receiving an international money order sent to you, verify that a local post office will be able to cash it.
  2. Endorse the money order. You must sign the back of the money order before it can be cashed, but wait to sign it until you're about to hand it over to the cashier.
  3. Provide identification. Your ID will need to match the name on the money order and be government-issued, such as a passport, driver's licence or military card.
  4. Pay associated fees. Unfortunately, you may have to pay fees and agree to poor exchange rates to cash your international money order. You may be able to have these charges deducted from the money order total. Ask the cashier if this is an option.
  5. Count your cash. Verify that the amount of money you received is correct before you leave the counter. Any missing money is not the responsibility of the cashier if you notice the mistake after finalising the transaction.

Frequently asked questions

Thomas Stelzer's headshot
Written by

Journalist

Tom Stelzer is a journalist with 6 years of experience covering personal finance, specialising in investment and cryptocurrency. With a Master of Media Arts and Production and a Bachelor of Communications in Journalism from the University of Technology Sydney, Tom provides expert analysis on digital assets and market trends, helping readers navigate the fast-evolving world of finance. See full bio

Zak Killermann's headshot
Co-written by

Publisher

Zak Killermann is a staff writer at Finder specialising in money transfers. He has ghostwritten hundreds of FinTech articles over the years and found his love for publication at St. Cloud State University. Zak has been travelling internationally for nearly half his life and — after getting burned once by an over-the-counter money exchange — vowed to never settle for anything short of the mid-market rate. See full bio

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