Money order is another popular option to send money and make payments. There may be situations when credit card payment does not work, or cash and check do not cut it, and in those situations, you can use a money order. However, if you have never used them before, this term can sound foreign to you. Money Order is a way to turn cash into a check without having a bank account. You can obtain it from a bank, grocery store, post office, and others. So, here’s everything that you need to know about it and why you should want one.
What Is A Money Order?
A money order is a prepaid paper document that works like a check, which is considered a guaranteed fund. A check and a money order are issued with an amount with the recipient’s name and it should be signed. However, there are some differences as well. Money orders are only for a limited amount and checks can be written for any amount. When you are writing a check, you are paying with the money from your checking account, and it can bounce back if you do not have enough money, or you can also stop the payment. However, that is not the case with the money order, it is a guaranteed check because you have already paid upfront.
Where Can You Get A Money Order?
Obtaining a money order does take more time and work as compared to writing a check, paying cash, or using your credit card. You can obtain a money order from a lot of places, including a grocery store, convenience store, post offices, gas stations, drugstores, check-cashing stores, banks, credit unions, retail stores, and more. However, if you need a cashier’s check, the only place where you can go for a money order is the bank. The charges may vary depending on your options, but a financial institution will charge more than a convenience store or USPS.
Why Should You Use A Money Order?
You may not necessarily have to use a money order if you have a bank account, as you can do the same thing for free and even by yourself. If you do not have a bank account, you cannot make a free transfer or use a payment app, which means that a money order which is a non-electronic payment method is the ideal choice. You may also need to use a money order if you do not have a checking account. Money orders are more secure than cash and are a safe alternative as you do not have to include your bank account number.
When To Use A Money Order?
Many people only opt to use the money order payment only when a business or a person asks for it. However, there are times when you should consider using one instead of paying using cash, a check, or a credit card. You should opt for a money order if you want to protect your financial and personal information. They are also ideal when you do not have a checking account, checks, or a bank account. If you are on a budget and you want to avoid expensive overdraft fees, this option is ideal. It also comes in handy if you need to send money overseas.
Safety Of A Money Order- Money order is safe, it is usually safer than a check. However, make sure that you always fill out the name of the receiver and sign it, if not anyone else can cash it. And if you want to protect your privacy, it is a great option as no personal or banking data will be printed on the document. The receipt provided adds another layer of protection, you can track the money order and confirm if it was received or cashed by the right person.
