Can a bank put a stop payment on a money order that was purchased from them?
That depends on if the money order is signed by a bank official (a "bank money order"). If so, it is the legal equivalent of a cashier's check, and a stop payment would not be permitted. There are in most states specific laws that address lost, stolen or destroyed cashier's checks.
If the money order was instead signed by the purchaser or remitter, it is typically considered the equivalent of a customer (single transaction) checking account. Stop payments are legally permitted on such money orders.
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