A money order is a certificate that allows a specific recipient to receive money upon request. It is usually granted by a government or a banking institution. Also, a money order is similar to check-in, and the person who bought it has the ability to stop payment.
What you’ll need to write a money order
Procedures for writing a money order differ depending on the organization, be it Western Union or Moneygram. The appearance of each institution’s money order can also differ significantly. However, you will normally need the following details:
- Name of the beneficiary (i.e. the person to whom the money will be paid)
- Address of beneficiary
- Payment amount
- Your name and mailing address
- The purpose of the payment and/or the billing account number
To purchase the money order, you will also need a form of payment (cash, check, debit card). Some issuers also restrict your payment options. You won’t be able to purchase a money order with a credit card, for example.
How to get a money order
Money orders can be purchased at banks and credit unions, check cashing businesses, the United States Postal Service, many grocery stores, and some big box stores. You can purchase the money order with cash or with a debit card.
However, you should avoid using your credit card to purchase a money order, as your credit card issuer may classify the transaction as a cash advance. Cash advances may incur hefty fees as well as higher interest until the balance is paid off. Some issuers will also refuse to accept credit cards as a form of payment.
The money order amount you can purchase may be limited. If you’re shipping it within the United States, the USPS, for example, allows you to purchase money orders up to $1,000 in value. In addition to the cost of the money order, you will typically be charged a fee ranging from $1 to $10.
Advantages of money orders
Cash orders are a protected installment strategy for purchasers. You can send the documentation that can be followed and gathered exclusively by the beneficiary. Cash orders, in contrast to checks, permit you to keep quiet, for example, your financial balance subtleties. They are additionally valuable for exchanges that don’t acknowledge checks.
On the off chance that you want to purchase and compose a cash request, you can do as such at various spots, including the mail center, monetary administrations firms like Western Association, retail foundations like Walmart, or a customary bank. Most traders will give a western association cash request for under a dollar, however you’ll pay somewhat more on the off chance that you go to your bank or credit association.
Composing a cash request in a western association is many times a protected method for installment for traders. Purchasers should pay a cash request to be composed and with cash or a western association cash same, so it doesn’t skip like an individual check.
Cash orders have downsides
As of not long ago, cash orders were a famous and modest installment technique. Be that as it may, new fintech installment options have been grown, like Venmo. These options in contrast to cash orders are more affordable, less complex and quicker. Therefore, you might need to investigate elective installment modes. Because of amount limitations and issuance expenses, enormous exchanges might require the utilization of numerous cash orders. A clerk’s check may be a superior choice in this present circumstance.
Likewise, cash orders are not a substitute for a customary ledger that permits you to compose checks or utilize a charge card. Cash orders, not at all like check or charge card buys, expect you to pay an expense each time you make an installment, making them less prudent for incessant exchanges.
Likewise, cash orders are sporadically fake and utilized in run of the mill web tricks, so ensure you finish them up accurately and that any cash you get is clear at your bank before you spend it.
How to write a money order
Once you’ve purchased your money order, write it down carefully to make sure it gets to the right person and is collectible. These are the steps to follow to fill it out:
#1. Enter the recipient’s name here
Fill in the “pay to” or “pay to order of” field with the name of the recipient of the payment order. It can be the name of a person or a company. Make sure you write everything accurately and that your handwriting is legible.
It is essential to complete this area as soon as you purchase the money order, as this will be the only person authorized to cash or deposit the money order. (If you forget or misplace a money order before writing the payee’s name, anyone can write their name on the money order and cash it.)
#2. Fill in the buyer box with your address
When the money order asks for the buyer’s address, enter your address. There may be an additional address field where you can enter the address of the person or company you are paying or transferring money to.
#3. Fill in the Memo field with the account or order number
A note line allows you to specify what the money order is for. You can, for example, declare that it will be used to buy a particular piece of land or to pay off a certain debt. If you have a payee account or order number, add it here. This field may also be called “payment by” or “account number.”
#4. Fill in the “Buyer Signature” area with your name
Sign the front of the money order in the section marked “Signature.” This part could be labeled “Buyer Signature”, “Buyer”, “From”, “Signer”, or “Drawer”. The back of the money order must not be signed. This is where the person or company being paid endorses the money order before cashing it.
#5. Save your receipt
Save your receipt, which includes a tracking number? This number can tell you if your money order was cashed by the correct person. Also, if it is lost or stolen, you can use the tracking number to help you replace it. When exchanging money orders, there may be a processing fee. If your plans change, your receipt can help you cancel the money order.
