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A money order, like a check, is a paper document that is used as a form of payment. It is a certificate issued by the bank or government that allows the holder to receive cash on demand. One buys a money order by filling out a few pieces of information. The amount used to purchase the order is printed on the face of the money order representing its value. Like a check, the person who purchased the money order may stop payment.

A money order is a secure and convenient form of payment for those who can’t use cash, check, and electronic transfers. Compared to a check, a money order cant bounce because it’s prepaid. It can be purchased at any U.S. post office, Money Gram or Western Union. Money orders can be bought at:

  • Supermarkets and convenience stores
  • Banks and credit unions
  • Check cashing, money transfer, and payday loan stores
  • S. Post Offices

When to Use a Money Order?

Money orders are generally used in cases where the use of cash, check, or a digital app isn’t ideal. Money orders, like checks, are directly addressed to individuals or companies by their names. The receivers require proper identification to cash out money orders. Money orders are generally regarded as secure and protect funds from theft.

Money orders have been around in the US for a long time. The solution was developed by Abraham Lincoln’s postmaster to curb money losses as a result of robberies at post offices.

How to use money orders

One can use a money order at the bank by transferring funds from their savings or checking accounts. You can also use cash or debit card to purchase money orders at a retailer. It is advisable to correctly fill in details on order by stating the money you need to send and details of the receiver,

Recipients of money orders can cash it or deposit it just like a check. This is done by endorsing the back of the order by signing their names. It is advisable to cash orders at the same place they were bought, i.e at Money Gram, Western Union, or bank.