My business received a money order for a payment. The payment was deposited, but a couple of days later I received a copy of the money order that was stamped "payment stopped." I thought a money order was as good as cash. Can a bank do this? How should I go about getting the funds?
Personal money orders (signed by the purchaser) are subject to stop payment orders because they are treated like single-use checking accounts under the law.
Assuming that you provided a good or service in exchange for the payment, your customer has likely violated one of your state's bad check laws, and you are still owed the money. You will have to attempt to collect using whatever method you use for the more normal bad check case (except that you won't be able to convert the money order electronically for payment).
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Personal money orders (signed by the purchaser) are subject to stop payment orders because they are treated like single-use 