Money orders ARE refundable.
More Info: If you lose a money order you may be able to place a stop payment on it as long as it has not been cashed. Similar to stop payment orders on a personal check, fees will generally apply.
How to Request a Refund for You Money Order
If you simply find that you no longer need to use the money order, simply fill it out to yourself and cash it. Make sure to endorse it in front of the teller and to bring the proper identification.
Lost or Stolen Money Orders
If you have misplaced your money order prior to using it, you can request a refund.
Make sure to save your money order receipt. You can use the receipt to request a search for the money order. For example, a Western Union money order comes with a receipt at the bottom of the money order that has the information required to request a search right on the receipt. You simply fill it out and mail it to the address listed on the receipt.
If you do not have a receipt, you will need to request a money order research request form from the issuing company. Going about it in this manner generally costs more than requesting a search with a receipt.
Precaution: Many places are allowed to sell money orders including convenience stores and other non-banking institutions. Be sure to check their refund policy prior to purchasing your money order.
“Money Order | Western Union.” Money Transfer | Western Union. N.p., n.d. Web. 18 Jan. 2012. http://www.westernunion.com/WUCOMWEB/staticMid.do?pagename=serviceMoneyOrder&countryCode=US&languageCode=en&pid=usFtMoneyOrder&method=load&nextSecurePage=Y
“BankingQuestions.com – A Blank Money Order: Can I Cash It? .” BankingQuestions.com. N.p., n.d. Web. 18 Jan. 2012. <http://www.bankingquestions.com/moneyorders/2010/q_0105_nopayee.html>