A money order is a form of paper payment that has high security than delivering cash since it carries the name of the recipient. You will need to endorse the order. If you are wondering how to fill out money order, they are very easy and simple to fill. It needs basic information but it is important to fill it out properly. When cash and personal checks are not a good option, consider money orders.
They are also useful to those who do not own a checking account. Those who use checks may not want to reveal their personal details like account number or address with some recipients and this is when they use money orders. A money order is prepaid and has no risk of bouncing, it is widely accepted by those who do not use personal checks.
There are only four steps to writing a money order but it should be done in the most appropriate manner. Do not miss out on any vital information and double-check the information you put in the order. The recipient will only be able to cash the order if the information in it is accurate.
Steps to fill out a money order
If you want to know how to fill out money order, you need to estimate the accurate amount you want. It will be machine printed on the order and it is not possible to change it later. The highest money order you can purchase is $1,000. If you want to make a payment exceeding $1,000, you need to buy multiple money orders.
When you head to purchase a money order, it is best to go with the name of the individual or organization that you will make the money order to. You will have to provide your account number in case you are going to use it to pay a business.
There are three pieces of information you need to put in an international money order- recipient’s name, your name or signature, and your address.
Fill the name of the recipient
You need to start by writing the name of the business or person who will receive the money order. Write the name on the line which starts with, “Pay to the order of”.
You need to remember that the recipient will be the only person who will be authorized to cash the money order. In order to ensure that the money order does not fall into the wrong hands, you need to fill out this section at the earliest. Double-check the name and spell it correctly so that the recipient does not have a problem cashing it.
Write your address
You are the buyer of the bill and your information will go in this section. You need to write your address to make it convenient for the recipient to know how to contact you in case of issues with the payment.
Your full name and address will go here. If you are comfortable sharing your address, write it here. If you prefer not to reveal personal information, you can leave the address field blank.
State the account number in case of a bill
There are money orders which have a payment for or account number field. You need to fill it out to ensure that the account is credited for the payment.
Sign at the bottom
After filling the requisite details, you need to place your signature where it is written, ‘purchaser’s signature’. Do not sign the back because it is for the person who receives the money order. Your signature will make the order official.
Keep the receipt
The receipt is your proof of payment and you need to store it in a safe place. If there is a problem at a later stage, you can use this receipt. After you have filled in the details, you need to remove the receipt which is present in all brands of the money order. It will give you an identification number that can be used at a later stage to track if the money is cashed or not.
If you are making a payment to a company through the money order, failing to include the order, account or invoice number will put you at the risk of the payment not being credited to the account. There is adequate space to fill in your address and the address of the recipient on the money order.
Double-check all the details and record the transaction in your business book. Now you can securely deliver the money order or mail it to the recipient as only that person or company will be able to use it. Writing a money order is very easy but it should be done in the most appropriate manner. If you find using money checks comfortable, it is a good way to transfer money.