If you need to pay a bill or an individual but don’t want to carry cash or use a bank check or credit card, a money order is your best bet. Filling out a money order is similar to writing a check. You’ll need mmoney know the payee’s name, the payment amount, the payee’s address, and any other relevant details such as an account number. Tcoa money order issuer varies slightly. When you purchase a money order, you provide the amount to the vendor. For buyersmoney orders are a safe way to make a payment.
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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 makes 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:. Cost: Expect to pay a small fee to get a money order. This makes them suitable for smaller purchases, but if you need more than that, you can buy multiple money orders and pay multiple fees.
Here’s how to fill out any money order to transfer money safely
Getting the money: If you receive a money order, you can cash it or deposit it just like a check. To do so, you generally endorse the back of the money order by signing your name. Doing so keeps the money safe, and you can earn interest on your savings. Money orders are one of many options for making payments. So, when does it make the most sense to use a money order? Alternative to cash: A money order can be made payable to a specific person or organization, which reduces the risk of theft. If a money order gets lost or stolen, you can cancel it and get a replacement.
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2. Write your address in the purchaser section
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DC Dorothy Chamberlin Oct 18, This wikiHow will teach you how to fill one out. The signature line on the back of the money order is for the other person or company to endorse it before cashing. There’s a hidden meaning behind Meghan Markle’s earrings. On the other hand, some banks offer them free to certain categories of their customers. Thanks to all authors for creating a page that has been read 4,, times. TA Tammy Allen Jul 6,
What Is a Money Order and How Does One 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. So buying ordr money order typically requires you to visit a location that sells them and leave with a paper money order in hand.
Fortunately, more thanU. Banks, credit unions, grocery and convenience store chains, and check-cashing stores sell money orders. Prices at banks, credit unions, and other sellers can be significantly higher. On the other hand, some banks offer them free to certain categories of their customers. So we recommend calling ahead. On the flip side, if you put the wrong ordwr on it, the recipient can have trouble cashing iut. Credit card companies generally charge large fees on money order purchases because they treat them like cash advances.
The U. Postal Service USPS carries its own brand and format of money orders, as do some banks and credit unions. Other sellers generally offer one of two brands: MoneyGram is sold at all Walmart toac CVS stores, while Western Union is sold at 7-Eleven, some grocery chains, and check-cashing stores. Whichever type you purchase, the seller will imprint the date and the caj, and then give you the incomplete money order to finalize by hand.
Money orders ask for your address so the recipient or seller can contact you if a problem occurs. One required field on any money order is an indication of the sender.
One optional field on most money orders can be quite useful. Or you could simply use the space for an optional note to your recipient — just like the memo field on a check. Curiously, MoneyGrams do not provide a designated memo space.
On MoneyGram and Western Union orders, only your address is requested. The intended information is your address, as the sender.
It can also aid your record keeping. Now that you have a completed money order in hand, and a receipt retained for yourself, you can safely hand-deliver the money order or mail it to your recipient, since only that individual or company will be able to cash it.
Checking Accounts. Your Money. Personal Finance. Your Practice. Popular Courses. Key Takeaways Safe, cheap, and widely accepted, orderr orders are easy to tocz and redeem, and about as simple to fill out as writing a check. When deciding where to buy a money order, check fees in advance because they can vary widely. Related Articles. Partner Links. Related Terms Understanding Money Orders A money order is a certificate, usually issued by governments and banking institutions, that allows the stated payee to receive cash-on-demand.
Endorser An endorser is authorized to sign a negotiable security in order to transfer ownership or to approve the terms and conditions of a contract. Paga Paga is a mobile payment platform that allows its users to transfer money and make payments through their mobile devices.
Bitcoin Exchange Definition A bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins. What Does Rubber Check Mean? Rubber check is a colloquial term used to describe a written check that does not have the funds available to be cashed by the recipient.
By following these five steps, you can make sure your funds are krder 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.
1. Fill in the recipient’s name
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 mak 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. Our opinions are our. Fill out a money order: Quick summary. Learn More. Tocaa next?
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