The US Postal Service (USPS) has introduced a newly redesigned money order with a red, white, and blue colour palette and enhanced security features.
The enhanced features include:
- Two watermarks: a Pony Express rider image and the words ‘United States Postal Service’ within a rectangular box.
- A vertical security thread to the right of the Pony Express watermark. When illuminated, the thread displays the letters ‘USPS’ alternating in orientation throughout.
- A QR code directing users to the USPS website, where they can verify the status of their money orders.
The enhancements aim to ensure that USPS money orders remain among the most secure financial instruments available.
But what is a money order?
A money order is a prepaid, paper-based financial instrument that allows someone to transfer a specific amount of money securely. It functions similarly to a cheque but is prepaid and does not require a bank account. Because money orders are issued by trusted institutions like banks, post offices, and retailers, they are widely accepted as a secure form of payment.
Paper-based money orders, as opposed to digital payment solutions, continue to be used for several key reasons:
- Millions of Americans don’t have bank accounts or access to digital financial tools. According to the Federal Deposit Insurance Corp, around 5 million US households were unbanked as of 2021, and many more are underbanked.
- Some people, especially in rural areas or older generations, do not have reliable internet access. Digital banking isn’t always accessible for everyone, making physical money orders a preferred option.
- Unlike electronic transactions (PayPal, Venmo, credit cards), money orders can’t be reversed or charged back (scammers often abuse digital payment systems by filing fraudulent disputes).
- Some landlords, government agencies, and institutions require money orders instead of electronic payments.
In 2023, the USPS issued approximately 63.3 million money orders, averaging more than 209,000 per day. While the number and value of orders may have slightly declined in 2024, it looks like money orders are not likely to disappear anytime soon.
