Which party endorses a money order

Her background in education allows her to make complex financial topics relatable and easily understood by the layperson. She has worked as a personal finance editor, writer, and content strategist covering banking, credit cards, insurance and investing. As a small business owner and former financial advisor, Daphne has first-hand experience with the challenges individuals face in making smart financial choices.

Select Region. United States. United Kingdom. Emily Guy Birken, Daphne Foreman. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. What Is a Money Order? How to Purchase a Money Order If you need a secure payment option, you can purchase a money order from one of the institutions or establishments that sell them.

These include: The USPS Some retail banks, like Wells Fargo Some retailers, including pharmacies, grocery stores, big-box retailers and convenience stores Check-cashing and payday loan stores Each money order has a nominal fee, which can cost under a dollar at some retailers.

Why Use a Money Order In a world driven by convenience, it may seem like there is no room for money orders. However, there are several excellent reasons to choose a money order over other forms of payment: They provide unbanked and underbanked individuals access to additional payment options. They are a secure form of payment to send through the mail. Cash in the mail can be stolen, and personal checks include your bank account number, which you may not feel comfortable sharing with the recipient.

They are more secure than carrying cash. 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.

Was this article helpful? Share your feedback. Send feedback to the editorial team. Rate this Article. Thank You for your feedback! Something went wrong. Please try again later. But some money order issuers will allow you to pay with a credit card. Without the original receipt, you may have a harder time getting your money back if a money order comes up missing. But as you complete a money order, take care to avoid these common mistakes:.

Another mistake to avoid is not comparing money order purchase fees before you buy one. Although money orders typically only cost a few dollars, some issuers charge higher fees than others. For instance, you could always choose to pay cash. Each of these options provides a secure way to make payments. The biggest differences between them lie in the cost and speed.

An ACH transfer lets you transfer money from one bank account to another electronically. For example, if you need to pay your mortgage, you could use an ACH transfer from your bank. ACH transfers are free, but they can take a few business days to process.

A wire transfer , on the other hand, can be completed in just a few hours. The trade-off for that convenience, however, usually means paying a fee to your bank. But either one can be used in place of a regular personal check, though your bank may charge a small fee for issuing one.

Other payment options include using a person-to-person payment app or a prepaid debit card. Person-to-person payment apps let you pay bills and send money from your bank account without having to write checks.

A prepaid debit card enables you to load money onto the card, which you can then use to pay bills. Keep in mind that opening a bank account can be a helpful and convenient way to manage your money and make payments. I'm a freelance financial journalist and a regular contributor to U. News and CreditCards. You can find me on LinkedIn or follow me on Twitter seemomwrite. She has worked as a personal finance editor, writer, and content strategist covering banking, credit cards, insurance and investing.

As a small business owner and former financial advisor, Daphne has first-hand experience with the challenges individuals face in making smart financial choices.

Select Region. United States. United Kingdom. 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. This stub provides the money order's official identification number, and you can use it to track whether the money order was cashed, and it's also a record of your payment.

Now that you have a completed money order in hand and a receipt, you can safely hand-deliver the money order or mail it to your recipient. Only the recipient will be able to cash it. While a money order is seemingly straightforward and straightforward to use, there are mistakes to avoid when using a money order.

The most important thing is to make sure you spell the recipient and payee's names correctly and fill out all the parts of the order. If you forget to fill something out or misspell a name, it can void out the order.

Never leave anything on the order blank, and don't forget to keep your receipt of the transaction. Don't forget to shop around for the lowest fees for a money order, either. One obvious advantage of using a money order is its simplicity. You can walk into a big box or even your local grocery and walk out with a money order, You don't need to have a checking account to purchase a money order, either, and they are simple to fill out.

The disadvantages are minimum, but they may be enough to dissuade you from using one. First, you have to pay a fee to purchase a money order, something you don't have to do when using a check. If you lose a money order and it is not filled out correctly, it can be easily stolen.

You'll have to purchase more than one, and with each order comes additional fees. If you lose or need to cancel your money order, it can take up to 30 days or longer to be reimbursed. If you need to cancel or replace a money order, immediately contact the entity that issued it to you, and they will ask you to fill out a cancellation request form.

Always make sure to save your receipt and be prepared to show it. You will need to pay a fee for a canceled money order, as well. When you fill out a cancellation request, you may ask for a replacement money order or a cash refund. According to Experian, it can take up to 30 days or more for a refund or replacement, so you will have to be prepared to wait. If the matter is urgent, you will have to purchase another money order.

There are many alternatives to money orders. You can use apps like Venmo and PayPal to send money with one swipe, and many banks, like Chase, use Zelle to transfer money directly from your checking account. You can write a personal check, too, for zero fees and more protection, should the check get lost or stolen.

You can buy a money order for a small fee at convenience stores, money order businesses, big-box stores, and at some credit unions and banks. There are drawbacks to using money orders such as a limited amount of money on each order, fees, and a 30 day or more waiting period for a refund on a canceled money order. Unfortunately, if you make a mistake, it is hard to correct.

For example, if you write out the wrong payee name or misspell it, you will have to ask for a refund, which could take 30 days, according to Western Union. If someone finds a blank money order with a specified amount on it, in theory, they could fill it out and cash it. If you find a blank money order with no cash value listed, you cannot cash it. Anyone can cash a money order, assuming it is made out to them and they have valid identification.

United States Postal Office. Accessed Sept. Western Union. Checking Accounts. Personal Finance. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights.