If you need to purchase an expensive item, you may feel uncomfortable carrying cash. For instance, if you purchase a sofa from someone at a site like Craigslist or Facebook Marketplace, you may choose to bring a money order for the purchase rather than cash.
They are the preferred form of payment for some transactions. This is common with private party car sales or online person-to-person sales.
How to Cash a Money Order If you are the recipient of a money order, you can generally deposit it into your bank account for free. The Downsides of Money Orders Although money orders serve a useful purpose, they do have several drawbacks. Bottom Line Money orders may not be a go-to alternative when other payment options are available, but they are a more secure form of payment than cash.
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Citizens Bank. TD Bank. Note that many banks will only sell money orders to accountholders. Some outlets allow you to buy a money order with a credit card, but others don't, including Walmart and the U. In those cases, you'll have to use a debit card or cash to buy a money order. Even if the provider you choose does let you pay with a credit card, it'll be much cheaper not to. That interest rate might be greater than the rate you'll pay on a normal purchase. Here are four examples of when money orders are the best payment method:.
You need to send money securely. Since money orders require you to pay in advance, you don't need a bank account and you can still pay bills safely. Another option: One of NerdWallet's best prepaid debit cards for regular purchases. Not all money orders work abroad, but U. Postal Service money orders can be sent to about 25 countries. Another option: A wire transfer, if you need the money there faster and are willing to pay more.
Or check out our best ways to send money internationally. Check-cashing locations, convenience stores and grocery stores can be alternatives, but watch out for fees. Banks accept U. Postal Service money orders as they would regular checks at branches, ATMs or even on a banking app with a mobile check deposit function.
How to pick between a cashier's check and a money order. If you no longer have the money order or you made a mistake on it, you may be able to cancel it and get a replacement or refund — as long as the money order hasn't been cashed.
The issuer will probably have you fill out some paperwork, using information from your receipt, and you'll likely pay a fee. And it can take a month or longer for the issuer to process your claim. If the money order was cashed, you may still be able to get your money back, but you'll generally have to involve the police.
It's relatively simple to find out where a money order is — as long as you've kept your receipt. But the process varies slightly by issuer. The U. Postal Service, MoneyGram and Western Union allow you to track online with information such as the serial number found on your receipt and the purchase amount.
Without the receipt, you'll likely have to file a research request to find your money order's serial number, and that's expensive and time-consuming. Just be sure to track the money order with the actual provider — it might be Western Union or MoneyGram even if you purchased it at a convenience store. Fill in ink the necessary entries adding his signature of thumbs marks at the foot.
A form without signature or thumb mark or incomplete in any respect will not be accepted. All entries made in the form must be legible and may be written in English, Hindi ot in the language of the district either by the remitter himself of by any one on his behalf. The remitter may write on the coupon any communication he desires to make to the payee. The money order form duly filed in, together with the amount of the money order and commission either in cash or by Cheque be presented at the post office counter.
A receipt will be given for the amount paid by him on account of the money order and commission. Any error or omission in the receipt should be pointed out at once by the remitter, otherwise the Post Office will not be responsible. Certified and cashier's checks issued by financial institutions offer even more security than money orders. However, they carry much higher fees and require visiting a bank during banking hours, and a money order is an easier and less expensive option.
So far, online money orders are rare and pricey. So buying a money order typically requires you to visit a location that sells them and leave with a paper money order in hand.
Fortunately, thousands of U. Banks, credit unions, grocery store chains, and check-cashing stores sell money orders, too. International prices are significantly higher. Prices at banks, credit unions, and other sellers can be significantly higher. On the other hand, some banks offer them free to specific categories of customers. Credit card companies generally charge hefty fees on money order purchases because they treat them like cash advances. You also could be piling up interest charges, so avoid this option if possible.
First, you'll need to know the exact dollar amount you want. This will be machine-printed directly on the money order, and you won't be able to alter it later.
You also need to know the proper name of the person or company you'll make out the money order to. Be precise, or the recipient may have trouble cashing it. If you're paying a business, add the account or invoice number to ensure the payment is appropriately credited to you. You can fill this information out later, but a blank money order as long as the cash amount is on it is as good as cash if it's lost or stolen.
Also, bring a debit card or cash to pay for your money order, unless you're at your bank and can withdraw it from your account. If you forget to fill out the name of the recipient on your money order and then lose it, anyone can cash it, it is basically found money. The U. Postal Service carries its 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 and CVS stores, while Western Union is sold at 7-Eleven, some grocery chains, and check-cashing stores.
Whichever type you get, the seller will imprint the date and the amount and then give you the incomplete money order to finalize by hand. There are just three pieces of information you'll be asked to provide to complete any money order: the recipient's proper name, your address, and your name or signature.
Money orders ask for your address so that the recipient can contact you if a problem occurs. If you're not comfortable sharing this information, there's nothing to stop you from leaving this field blank or entering your email address or cell phone number instead.
One required field on any money order is an indication of the sender. On most money orders, it's your signature that's requested, just as you sign a check. One optional field on most money orders can be quite useful.
Or you can use the space for any other information, just like you would use the memo field on a check. USPS money orders offer additional space for the address of the recipient. On MoneyGram and Western Union orders, only your address is requested.
MoneyGram money orders are confusing. The blank says "Address," with no clues on whether your or the recipient's address is wanted, and it means the sender's address. Once you've filled in all the fields, be sure to detach the receipt.
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