A money order is a paper document, similar to a check, used for making payments. Money orders are prepaid, so they are only issued after a buyer pays for the money order with cash or another form of guaranteed funds. Specific payee: The name of a payee the recipient of the money order and the name of a financial institution that issued the money order appear on every money order. When you buy a money order, you specify who should receive the funds by filling in the name of the person or organization that you wish to pay. That mame it difficult for thieves to steal the instrument and get the money. Be aware that con artists sometimes use money orders are in scams. Many money orders are legitimate, but you need to use caution. Money orders are available for purchase from several sources, including:.
How do money orders work?
By following these five steps, you can make sure your funds are delivered to the right person or business. The recipient will be the only person or company authorized to deposit or cash the money order. Sometimes your full name is also required. Filling it out helps make sure your account is credited for the payment. Bonus features No overdraft fees. Bonus features Earn up to 1. Your signature is important here, because it makes the money order official. That area is for the person who receives it. This is your proof of payment. Unlike writing a check from a personal bank account or handing over cash, a money order gives you proof of payment and assures the recipient that the funds are guaranteed. At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners.
How to purchase and send a money order
Money orders are printed documents that you can use for payments. Then, all you need to do is fill in a few pieces of information. A lost or stolen money order is less problematic than losing cash. For more background information, see How Money Orders Work. You just need to purchase the money order first. Payment: The first step is to buy a money order for the amount you need. You typically need to pay for money orders with cash, a debit card, or a credit card cash advance. Be prepared to cover your payment amount plus fees. Where to purchase: You have several options. Convenience and cost may dictate where you buy. Keep your receipt: Hold on to any confirmation materials you get with your money order. If the payment goes missing, you can track it to find out if anybody cashed or deposited the money order.
How do money orders work?
Money orders are about as simple to fill out as a personal check. Different outlets use different formats, but they all need the same basic information. A money order is a paper payment that is more secure than sending or delivering cash because it names a specific recipient, who will have to endorse it and show identification to cash it. Money orders are especially useful to people who don’t have a checking account or don’t accept checks. Even if you use checks, you might not want to share the personal information printed on them — such as your address and account number — with certain recipients. Provides the security of a check written to an individual or company while being much more widely accepted. Requires visiting a seller, whether a major retailer, grocer, convenience store, bank, credit union or post office. However, they carry much higher fees and require visiting a bank during banking hours. So far, online money orders are rare and pricey.
How to Send a Money Order
Available at more than , U. You can buy one at any U. Most banks, credit unions , and check-cashing stores offer money orders as well. In situations where paying with cash, check, or a digital app isn’t ideal — or even viable — a money order might be the best answer. Like a check, money orders are written directly to individuals or companies by name, requiring endorsement and identification to cash them.
What Is a Money Order and How Does One Work?
They might seem old-fashioned — like rotary phones and wristwatches. But the good old money order can still have a place in your financial toolbox. A paper document that allows you to securely and inexpensively send cash to an individual or vendor. A money order is an alternative payment method to cash and checks when you need to send funds. With a money order, you pay an issuer in the amount you plan to transfer. In return, you receive a paper document similar to a check that includes the dollar amount of your payment. You then mail or deliver the money order to the person or institution you are paying. To purchase a money order, you first need to locate an issuer. Outlets that sell money orders include:. A money order must include 3 key details that should be familiar to anyone who ever has written a check:. In addition, there is a memo line — just as on a check — where you can record a note about the nature of the transaction.
A money order is a safe and easy alternative to cash or checks
A check or cash isn’t always a sufficient method for paying a bill or ogder payment for a purchase. However, money orders are widely accepted when cash or checks are not. If you don’t have a checking account, a money order also can substitute hwo a check when paying mzke or creditors.
Here are some recommendations about how to pay for a money order. This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. Together, they yow information from 18 references. Categories: Money Transfers. Log in Facebook Loading Google Loading Civic Loading No account yet?
Create an account. Edit this Article. We use cookies to make wikiHow great. By pay,ent our site, you agree to our cookie policy. Article Edit. Learn why people trust wikiHow. Learn more Method 1. Use cash. Cash is the most widely accepted form of krder for a money order. You can go to any money oayment provider and purchase a money order with cash. You simply pay for the amount of the money order plus a fee. You can also pay with a debit card linked to your bank account.
You cannot pay for a money order with a personal check. Checks can take a few days to process. You will have to pay for the amount of the money order plus a fee based on the money order. Purchase a money order with a credit card.
Some money order issuers allow you to use a credit card, but not all. You mohey use a credit card to purchase a money order at Western Union and vix. It is expensive to buy a money order with a credit card. Your card issuer will likely view it like a cash advance.
This means they will charge you the higher interest rates and fees associated with cash advances. You can pay with one of these cards at Western Union, Walmart, the post office and 7-Eleven.
However, doing so is often linked with suspicious activity. For example, some people purchase these pre-paid cards and then immediately liquidate them in order to take advantage of any available rewards the cards offer. Oreer they deposit the money orders into their bank accounts and use the money to pay their bills. But paymrnt lots of money orders into your bank account looks like money laundering, and your bank can close your account for doing so.
Purchase a money order remotely. Some companies now allow you to purchase and send a money order online. For example, ppayment can purchase a money order online with Payko and pay with your PayPal account, which is linked to a credit card or bank pagment. This method is not as fast as other online bank transfers. Instead of an instantaneous transfer of funds from one account to another, a physical money order is printed out and mailed to the recipient.
This can take several days. You can contact a remittance service like Western Union and request an electronic transfer of funds over the phone. You can pay with a credit or debit card.
However, a physical money order is not printed out in this pahment. Method 2. Purchase a money order from the bank. In general, ordr charge the highest fees for money orders. Every bank momey a different.
Go to the post office. This is not the least expensive fee for money orders. However, people will be less likely to question the legitimacy of a money order from the U. Post Office. It is a widely-recognized, well-respected issuer of money mohey. Finally, it is convenient if you need to send the money order to someone, because you can purchase the money order and mail it all in one transaction.
Use a remittance service provider. Remittance service providers are places where you can electronically transfer money. At Western Union and MoneyGram, the fees for money orders vary from branch to branch. Pay for online money orders. Payko is a company that allows you to purchase money orders online. However, their fees are considerably higher than purchasing a money order in person.
On top of that, you will have to pay a fee of 5. Finally, you have to pay for postage to send the money order to the recipient. So if you need more money than that, you must purchase multiple money orders. This means that you also pay multiple fees. Method 3. Evaluate alternatives to money orders. Money orders are inexpensive and expedient. But, they attract scammers, and some places do not accept them as a form of payment.
Also, since you have to go in pyment to purchase a money orders, they may not be as convenient as other forms of payment. They give you the convenience of a credit card without the risk of running up a huge debt. Compare the fees for a money order with other forms of payment. Money orders are inexpensive. Oreer, sometimes people choose to paymdnt higher fees for other forms of payment. This can be for security reasons or for convenience.
Compare the security features. Money orders are sometimes seen as a disreputable form of payment. Someone can steal a money order and put their own name as the recipient. Also, many scammers try to use counterfeit money orders. Can I transfer money without a physical credit card if I know the information? Yes No. Not Helpful 1 Helpful 5.
Andrew Serrano. This would depend on who you are purchasing. If you are buying it in person, changes are they will request cash, however American Viw does have different allowances with some of their vendors. They may only allow a traveler’s check, however many places will no longer accept them because of fraud potential.
Not Helpful 0 Helpful 1. In a roundabout way, yes. You would have to go to your bank and request a cash advance from your credit card. This cash would be deposited in your account, and the bank would issue a cashiers check.
However, be forewarned: a cash advance from a credit card will cause the highest potential interest rate to begin accruing the same day as you take the cash, and there are usually a cash advance fee of a percentage of what you advance. Only do this in an emergency situation, and pay the balance off immediately. Not Helpful 4 Helpful 3. The choice in method of sending pyment by phone would be dictated by where you are sending the money viq how you would expect the money to be picked up.
If you are sending it to another person and they have access to a bank, you can send a wire to the recipient’s bank and they would be able to access the cash at an ATM with their ATM card. If this person doesn’t have access to a bank you can try to do a MoneyGram or a Western Union, but the person x need a picture ID and you will need the person’s exact name, city, state, and country. Not Helpful 2 Helpful 1.
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A check or cash isn’t always a sufficient method for paying a bill or submitting payment for a purchase. However, money orders are widely accepted paument cash or checks are not. If you don’t have a checking account, a money order also can substitute as a check when paying bills or creditors. Here are some recommendations about how to pay for a money order. This article was co-authored by our trained team of editors and researchers who validated it for accuracy and comprehensiveness. Together, they cited information from 18 references. Categories: Money Transfers. Log in Facebook Loading Google Loading Civic Loading No account yet? Create an account.
Here’s how to fill out any money order to transfer money safely
Money orders are a secure payment method. They are convenient, affordable, and widely accepted. Money orders are a good way to send cash that never expires. How and where do you get money orders? If a money order is lost or stolen, you may be able to have it replaced. Send Money Orders Internationally. Read More. Before accepting monye money order, make sure it’s real.
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