Once a postal money order is cashed you're basically up the creek without a paddle as far as the post office is concerned. They will only refund your money if the money order is lost, destroyed, etc., not for non-delivery or merchandise.

This guy up in NH was selling a Breitling on ebay which I bought. I sent him off a money order immediately, had delivery conformation and return receipt request (signed for) as an extra precaution. All that didn't matter. Yes, I had all the proof the money order was delivered and signed for but I still had no watch. I phoned a couple of times and got the run around from an alleged friend or relative, etc. This went on for over 45 days. I filed a complaint with the Federal Internet Fraud site, Post office, Ebay and things weren't moving very fast. I had the guys phone number and address so I called his local PD and asked them if I could make a complaint and they said "sure!" I mailed them copies of all the emails and receipts and they picked him up within a week as he was packing his car up to leave. Turns out he was already on parole. Something about he was buying PCs at Walmart and taking them back for a refund minus the guts. (loser) It also came out in the wash that he was actually using his roommates ebay account and name so I started all this legal action against the wrong guy but the police figured it all out. He's back in jail to serve the remainder of his 7 year prison sentence but is eligible for parole. The DAs office there keeps me updated and sends me a letter whenever his status changes. They told me that he'll probably be back on parole soon but that as a condition he has to pay me restitution within 45 days or they'll revoke his parole again. So, Ebay paid me back $175 (I think it was) their max for fraud so if I ever get the money back from this guy I might actually come out ahead. Naa, all this hassle was like spending money. I do have good things to say about the Police Department up there though. It's nice to know they're on the ball.