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Home >> Manage Your Money >> Personal Finance
Getting Paid by Money Order, or Not
An ex-employer owes me money and he said he sent it to me in the form of a money order. I'm trying to convince him to send the money again before I file a complaint.
He says he sent a money order, but I've never received it, yet I've received every other document from the company. Is it possible that someone else could have received the money order and deposited it in their account? I'm asking because if no money was taken from his account then I have proof that he never sent it, which I'm sure is the case.
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 The problem here could well be that your ex-employer did send you a money order for your wages, but it was lost or stolen. Some money order terms do require that they be outstanding for a stated period of time before they can be replaced, say ninety days as an example. One question to be asked is why a money order would have been sent instead of a paycheck which would fit better into their accounting system.
There are two types of money orders: bank money orders and personal money orders. Personal money orders are money orders that bear the customer's signature. A personal money order is the equivalent of a single use checking account. A bank can allow a customer to place a stop payment on it, but money orders can also be purchased from the post office, grocery stores, convenience stores, and elsewhere. Different products have different terms.
The second type is a bank money order. This is signed by the bank and is therefore a direct bank obligation of the bank. It is treated as an official check of that bank. A bank should generally not put stop payments on these items as they are meant to be the equivalent of a cashier's check, and good funds. To place a stop, there may be that time interval required and indemnity bonds because if that money order is later presented for payment, the issuer may have to pay it and take a loss.
At this point, you should have the ex-employer find out what steps are necessary to both verify that the money order is still outstanding and to re-issue a new one to you. If it was paid, they should be able to verify who cashed it, and on the re-issue, you may ask that a check be sent, that they electronically transfer the funds to your account or that they send you payment via certified mail, or through some other traceable means such as Federal Express, UPS, DHL, etc.
Published on BankingQuestions.com 2/14/07
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