A money order is your best selection to pay for both buying and selling. As it is a safe method, it is often considered as the best substitute for check payments. But it is vital to know about the essential tips and where to get money orders.
So what is a money order? A money order is a paper statement like a check. It is a type of prepaid payment for effective transaction in paying or sending. As it is prepaid, these money orders are only acquired after paying for it either with cash or other forms of payment.
Money orders work like checks. You need to specify the name of the receiver with signatures from both you and the receiver to validate the money order. Money orders do not have an expiry date. It can also be tracked or blocked if stolen or lost.
The price of money orders differs from place to place. However, the standard cost is from a couple of bucks to a dollar. It can be considered as a benefit, especially when you want to send money abroad.
Where to Get Money Orders
If you are wondering where to get money orders, you can basically get it from anywhere. You can buy money orders from places such as the post office, or monetary institutions like banks, loan stores, money transfers, and credit unions. You can also get them through convenience stores and supermarkets. When you buy a money order, it will require you to make a guaranteed fund payment.
Reasons for using Money Orders
Money orders have become one of the best alternatives for payments. Let us discuss why we should use money orders.
- Alternative to Cash
Money orders are payable only to a particular person or group and are, therefore, at a low risk of getting stolen. If cash gets stolen, you cannot replace it, and it is far too risky to mail cash to someone, but with money orders, even if you lose it, you can cancel your order and register a new one. Tracking your money order is also an excellent way to see if the receiver received the order.
- Bank Account Not Required
One convenient thing about money orders is that you do not require a bank account. So even if you don’t have a bank account, you can use the money order to make payments.
- Keeps Your Information Confidential
Unlike checks that display personal information such as bank account number, phone number, etc. to the receiver, money orders keep the details hidden and protected. So even if you have trust issues with the receiver, money orders will keep your information incognito.
- Required by Seller
There are some sellers who prefer getting paid with money orders instead of personal checks. Because of the availability and popularity of money orders, it has surpassed cashier’s checks and has become a preference for most sellers.
- Send Money Abroad
Money orders will be hour best bait when you send money abroad as it is a safe and low cost-effective form of payment. Money orders can be easily converted into currencies by the receiver. USPS money orders are one of the most popular money orders and are recognized in several nations.
9 Tips for Buying Money Orders
The following are the tips for where to get money orders.
For checks, you will need to go to the bank for making payments, but with money orders, you do not have to worry about where to get money orders. You can easily send money from a retailer by paying for the money order with cash or other guaranteed funds.
- Amount and Payee
When you fill out your money order, make sure to do it correctly. Let the issuer know how much you would prefer for the money order so he can print the exact amount for you on the document.
- Maintain Your Records
When a money order is issued, you will receive whether a paper slip or a carbon copy of your money order. Maintain these receipts as proof of your payment.
- Track Your Money Order
In the receipt, there will be a tracking number which you can use to track your order to ensure that your recipient received the payment. If at all issues arise while sending the money order, you can contact the place you got the money order from for help. If your money order gets stolen or lost, you can cancel it and request a replacement for a small price.
- Credit Cards
While buying money orders, some of the issuers may persuade you to buy using a credit card, but you may be receiving a cash advance. A cash advance is expensive as it comes with huge fees and credit cards typically charge huge interest on cash advances.
- Cost of Money Orders
Money orders typically cost from a couple of bucks to under a dollar. It can differ from the place of purchase. Retail stores and post offices offer money orders at the least cost, while banks may charge as high as $10.
- Purchase Amounts
They are best for small purchases as it has a maximum limit. Usually, the limit is $1000 per order. If you need to send more than the limit, you can buy several money orders and send them together. If you do not want limits, cashiers checks are good alternatives.
- Buy the Exact Amount
Your payment statement should be the same as the printed money order. Buy only the exact amount of money order that you require.
- Receiving the Money
If you are the receiver and if you get the money order, you can either cash it out or deposit it. You need to sign your name on the back of the money order received. It is recommended to cash money orders from the same place where it was purchased. You can also deposit it to your bank account if you do not require the cash in hand.