I guess that if it was cashed right when received then the sender is SOL. Of course that is assuming that it is cashed before the sender had a chance to stop it. However since the person sending it is usually already aware that they are going to cancel it, they would probably attempt to cancel it as soon as they purchased it. You know, like the same day they bought it.

Then, it will already be canceled, and the other company will not know as nothing will change the way the money order looks when the store gets it. It will still look like the SAME money order.

The person cashing it will not know until it is processed. I am assuming that something has to be be punched into a computer like a check is. It somehow must show it to be no good ( or if it is cashed through a bank then the person who cashed it will get the funds from the bad mo taken out of their checking account as they are then responsible for the funds. Now if the person who received it took it to the bank where it was issued (the person who bought it's bank) then the teller would immediately be able to tell the person cashing it that they can not gove them the money as the money order had been stopped by the person who got it. SO they will not get any money.

Or like a check that someone cashes at their bank that is either a bad check or has been stopped, the person cahsing it will be SOL and will have to pay banking fees for the bad check. plus, the funds will be removed from their account (which trust me....sucks big time. Especially with a large check because you already count that into your bank balance and sometimes you can write checks assuming those funds are there. Then you may end up bouncing checks and screwing up your whole credit thing. That was what happened with the guy who wrote us those 2 large checks!

As for cashing the money order at one of those quick check cashing places, well I have never cashed a check or money order at one of those check cashing places, you know the ones that charge an arm and a leg to use, but I bet they have to double check money orders from banks and all checks to make sure there are funds available or that the money order is valid before giving the customer the $$. Correct me if I am wrong but I can not imagine it done any other way.

Hope that answers your question!