Paying zakat by money order
Question
If zakat funds are sent by money order (postal money transfer), will the zakat be discharged or not? For in Fatawa Rashidiyya it is written that money should not be sent by money order, since there is a tinge (sha'iba) of usury (riba) in it; and in al-Durr al-Mukhtar it is written that if the agent (wakil) spends the zakat money before paying it, the zakat will not be discharged; and it is also written there that if the agent mixes the zakat of two principals, the agent will be a betrayer (kha'in), i.e.
Answer
In your question two matters call for consideration: first, that the money order is impermissible; second, that zakat is not discharged through a money order — the gist of the reasons for which is that the government is the agent for paying the zakat and acts contrary to the office of agency.
Source: Fatawa Mahmudiyya
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