Postal Order - Presentment

Presentment

United States Postal Money Orders appear facially as a draft against an account held by the United States Postal Service, and the United States Postal Service requires a purchaser to know, in advance, where presentment of the instrument will occur. This is a defect in the current functionality of United States Postal Money Orders, as those intended for domestic use may not be negotiated if they are transmitted abroad. Consular Services do not assist United States citizens receiving United States Postal Money Orders even within Consulates or Embassies, which are technically places these instruments could be negotiated. The United States Postal Service maintains web services at www.usps.com which maintains that both domestic and international United States Postal Money Orders can be presented for negotiation (cash) abroad, but while this is stated on the website, only special, more expensive United States International Postal Money Orders may be presented in these predetermined countries. In the United States, therefore, the instrument issued is determinative of all issues surrounding presentment, a fact concealed on the USPS website.

Canada Post issues only one money order, and will issue it payable either in United States or Canadian dollars. Canada Post Money Orders issued in Canadian dollars may not be presented for payment abroad, notwithstanding that those issued in United States dollars appear to be valid for presentment in the United States and its possessions. Because of this distinction, Canadians may misunderstand more easily when purchasing United States Postal Money Orders that presentment of the domestic (most common) instrument is not possible in Canada. Banks in Canada lack capacity to address this fraud against Canadians and have not engaged in reciprocity against the United States. All Canada Post Money Orders cost the same and appear the same facially, excepting the currency in which they are to be paid. In the United States, International Money Orders are pink and domestic money orders are green.

Purchasers of money orders should be wary of the presentment issues that face money orders outside their home country. Just because of assurances or published website details regarding presentment, the facts relied upon should be verified with an officer of the bank at which presentment is expected to occur. If the locale of presentment should change, purchasers should be aware that obtaining their funds may require that they retain contact with the issuer/purchaser, or assume the risk that the Money Order will be deemed invalid upon otherwise proper presentment.