ACE Money Transfer
ACE Money Transfer
12 Dec 2024
Postal orders have been a trusted way to send money in the UK for over a century. While digital services have taken over most everyday payments, there are still plenty of situations where a postal order is the smartest - or only - option. This guide walks you through the entire process, from buying your first postal order to making sure it arrives safely.
A postal order is a prepaid paper payment method issued by the Post Office. You pay the full amount in advance, so the recipient is guaranteed to receive the funds without any risk of the payment bouncing. No bank account is needed to buy one.
Here is the process in plain language: visit a Post Office, tell the clerk how much you want to send and whether you need it crossed or uncrossed, pay in cash, fill in the recipient's details, then post or hand-deliver the order. The whole purchase takes just a few minutes at the counter.
Mini-checklist:
Choose the amount you want to send.
Decide whether you need a crossed postal order or an uncrossed one.
Visit your nearest Post Office branch.
Pay the face value plus the fee and collect your receipt.
Fill in the payee's name and address clearly.
Post the postal order in a secure envelope, or deliver it by hand.
Unlike a bank transfer or other digital services, postal orders don't require an online login, a UK bank account, or even a smartphone. They are paper-based and work well when the recipient can't accept electronic payments. However, postal orders are valid for 6 months after purchase, so avoid long delays in posting them.
A postal order is a prepaid paper money order issued by the UK Post Office. It works similarly to a cheque, but with one key difference: because you pay the full value up front, the payment is guaranteed. There is no linked bank account and no risk of insufficient funds.
Postal orders can be cashed at any UK Post Office branch or paid into a bank account, depending on whether they are crossed or uncrossed.
A crossed postal order can only be paid into a bank account or used to pay bills. An uncrossed postal order can be exchanged for cash value at the Post Office counter.
Typical uses in 2026 include paying government forms and exam fees, settling invoices for small companies that request postal orders, sending gifts where the recipient doesn't have a bank account, and situations where you'd rather not share your account number and sort code.
Postal orders are more secure than sending cash through the mail. Because funds are paid in advance, they are safer for the recipient than a personal cheque, which can bounce.
Postal orders are UK-specific. International postal orders exist but are less common and often more expensive than modern money transfer options for sending money internationally.
Choosing the right type is an important part of sending a postal order safely. The main difference comes down to how the named recipient can redeem the funds.
Uncrossed postal orders are as good as cash. The recipient takes the order to a Post Office counter, signs the back, and walks away with money. This is suitable for trusted individuals or small mail order items.
Crossed postal orders are marked with two vertical lines. They can only be paid into the recipient's bank account or savings account, or used to pay bills. This makes them the preferred choice for payments to companies, government departments, and exam boards.
If you're unsure, ask the recipient what they prefer. Many official bodies specifically request a crossed postal order.
Uncrossed postal orders carry more risk if lost or stolen in transit, because they can potentially be cashed by someone other than the intended payee.
Post Office staff can cross a postal order electronically at the time of purchase, so you don't need to draw the lines yourself.
The postal order cost is made up of two parts: the face value (the amount the recipient gets) plus an issuing fee charged by the Post Office. You must pay both the face value and a small fee when purchasing a postal order. Postal order fees range from 50p to £12.50 in 2026, and fees depend on the value of the postal order.
| Face value | Fee |
|---|---|
| £0.50 – £4.99 | £0.50 |
| £5.00 – £9.99 | £1.00 |
| £10.00 – £99.99 | 12.5% of face value |
| £100.00 – £250.00 | £12.50 (capped) |
A £100 postal order incurs a fee of £12.50, meaning you pay £112.50 in total. The same £100 sent via a bank transfer is usually free.
The maximum amount for a single postal order is £250. If you need to send more, you'll need multiple postal orders, each with its own fee. For example, sending £300 might require a £250 order (fee: £12.50) and a £50 order (fee: £6.25), totalling £18.75 in fees alone.
Before choosing a postal order, factor in the total cost compared to a bank transfer or digital services, especially for frequent or larger payments. A postal order is not always the most cost effective option.
Always keep the receipt. It shows the value, the fee paid, and the unique postal order number you'll need for tracking or refunds.
You can only buy postal orders in person at Post Office branches in the UK. There is no online purchase option.
Find your nearest local Post Office using the official branch finder or local signage. Check opening hours before visiting.
Go to the counter and ask to buy a postal order for the amount you need. Tell the clerk whether you want it crossed or uncrossed.
Postal orders can only be purchased in cash at Post Offices. Don't expect to pay by debit or credit card - bring the right amount of cash in advance.
The Post Office branch clerk will process the order through their system, print the postal order, and hand it to you along with a separate receipt showing the postal order number (a unique id number located under the barcode).
Before you leave the counter, double-check the printed amount, confirm whether it's crossed or uncrossed, and verify the receipt matches. Mistakes are difficult to correct after you walk away.
Filling in the details accurately protects both the sender and the recipient and prevents delays or outright refusal when cashing. A postal order with errors, alterations, or smudges may be rejected.
Fill in the recipient's name and address on the order. Key fields include the payee's full legal name (or company name) and, where applicable, their address. Some designs also include a counterfoil for the sender's details.
Write the recipient's name clearly in block capitals. Match it exactly to what the organisation or person has requested - abbreviations or nicknames can cause problems.
Sign the postal order where indicated, usually on the front or back depending on the design. Do not write across the printed security features such as the barcode or watermark.
Before posting, note down or photograph the completed postal order and the postal order number for your own records. This is your proof of purchase if anything goes wrong.
Any crossings-out, corrections, or ink smudges can cause the Post Office or bank to refuse payment. If you make a mistake, it may be easier to purchase a new postal order than to try to fix the original.
A postal order is usually sent in the post like any other document. Both the sender and the recipient share an interest in making sure it arrives intact.
Mail the completed postal order in an envelope addressed to the recipient. Include any covering letter, application form, or reference number the payee has requested.
Use a sturdy envelope and avoid writing words like "cash" or "postal order" on the outside. Keep the contents discreet.
You can send a postal order by standard or express mail. For everyday payments, Royal Mail First Class is fine. For higher amounts, it is advisable to mail postal orders using a secure delivery service such as Signed For or Special Delivery, which provide tracking and compensation if the item is lost.
Delivery times within the UK are usually one to three working days. Allow extra time if you're making a payment with a strict deadline.
Where practical, hand delivery is an option - for local payments or gifts. If the amount is large, ask the recipient to sign a simple receipt as proof of delivery.
Once the postal order arrives, the recipient redeems it based on whether it is crossed or uncrossed. Understanding how postal orders work on the receiving end helps you fill them in correctly.
For an uncrossed order, the recipient signs the back, takes it to a Post Office counter, and requests the cash value. For a crossed postal order, the funds must be paid into the recipient's bank account or building society account using a paying-in slip with their account number and sort code.
Proof of identity is not always required, but may be requested as a security step, especially for larger amounts or where fraud checks are triggered.
Postal orders are valid for 6 months after the purchase date. After that window, payment may be refused. Recipients should not delay in cashing or depositing.
Fees for cashing are normally built into the original purchase price. In some cases, a small handling fee may apply depending on where the order is deposited.
An international postal order is designed to be cashed in certain other countries that have agreements with the UK postal system. They let you send funds abroad without a traditional bank wire.
Not all countries accept international postal orders. Availability has been reduced over time, so check with your local Post Office before relying on this method for sending money internationally.
International postal orders are limited to £250 per order. International postal orders can incur additional cashing fees for recipients in the destination country, and they are slower than other money transfer methods, typically taking 7 to 10 days.
International postal orders are not the cheapest way to send money to other countries. For most international money transfers, specialist money transfer services or bank transfers offer better exchange rates, lower fees, and clearer tracking.
They can be tracked using the receipt from the purchase. When filling in an international postal order, use the recipient's full name and address abroad and ensure the currency and country fields are correct.
For the majority of remittances, modern digital services or a direct bank transfer to a recipient's bank account will be faster, cheaper, and easier to track.
Problems are rare, but recovery depends on keeping the original postal order receipt and the postal order number safe. These are your proof and your route to a refund or claim.
Lost in the post: You must wait 15 days after posting before claiming a lost order. Then obtain a P58 lost post form from a Post Office branch and submit it with a photocopy of the receipt and any proof of posting to Royal Mail. If lost, postal orders can be refunded within 35 days - refunds for lost postal orders can take up to 35 days to process.
Stolen postal orders: Report the theft to the police immediately and obtain a crime reference number. Contact the Post Office with this report, your receipt, and the postal order number so they can investigate. Crossed postal orders are harder for thieves to cash, which is another reason to prefer them.
Already cashed fraudulently: Recovery is harder if the order has already been encashed, but may still be possible if fraud can be proven and you act quickly.
Expired orders: If more than 6 months have passed, payment may be refused at the counter. You can request a refund from the Post Office's Postal Order Correspondence Team by sending the original order and your contact details to their address. The refund usually excludes the original fee.
Protective steps: Always keep your postal order receipt to expedite the refund process. Use tracked or signed-for mail for higher values. Prefer crossed postal orders to reduce the risk of someone else cashing them. Postal orders can be tracked using their unique id number printed on the back.
Keep your receipt safe - without it, the Post Office has very little to work with if something goes wrong.
While postal orders are useful in specific situations, they are not always the fastest or most cost effective choice. It's worth weighing up your options before heading to the Post Office.
Bank transfers: A direct transfer using an account number and sort code is instant or same-day via Faster Payments, and usually free for individuals. The main difference is that both the sender and recipient need a UK bank account.
Digital services and online money transfer providers: Services designed for sending money within the UK or to other countries often offer better exchange rates and clearer fee structures than international postal orders. They are also easier to track. No cheque book required.
When to stick with a postal order: When the recipient has no bank account, when a government department or exam board specifically requires postal orders as an accepted form of payment, or when you want to avoid sharing your bank details. Postal orders issued by the Post Office remain a secure and reliable service for these situations.
Weigh up the trade-offs: Compare the fee, speed, security, and convenience. Sending £100 by postal order costs £112.50; the same amount by bank transfer costs nothing. For small, one-off postal services where digital isn't an option, a postal order is perfectly sensible. For regular or large payments, electronic methods save money and time.
Use postal orders confidently when they are the right tool for the job. When flexibility and cost-saving matter more, choose a faster digital option - your wallet will thank you.
