Money Order

How Money Order Works: The Ultimate Guide

When you need to send money but don’t have a checking account or a debit card, a money order might be the solution for you. Money orders are an old-fashioned way of transferring cash, but they’re still widely used today. How do they work? How much do they cost? We’ll answer all those questions and more in this post. Keep reading to learn everything you need to know about money orders!

What Is A Money Order And How Does It work?

A money order is a payment order for a pre-specified amount of money. They are a safe and convenient way to send cash, especially if you don’t have a bank account or if you need to send money to someone who doesn’t have a bank account. They can be purchased at post offices, banks, and convenience stores. Money orders are often used for rent payments, utility bills, and other situations where cash or a personal check might not be accepted.

  • To purchase a money order, the customer typically needs to provide their name, address, and telephone number along with the payee’s name and the amount of money to be paid.
  • Once the money order has been filled out, it can be cashed or deposited like any other check.
  • Money orders can be a convenient and secure way to make payments, but it’s important to be aware that there is usually a fee associated with their purchase.

How Much Does A Money Order Cost?

The cost of a money order varies depending on where you purchase it and how much it’s for. For example, a money order for $200 from the post office might cost $0.70, while one for the same amount from a grocery store might cost $0.88. If you need to send a large sum of money, it’s usually cheaper to purchase multiple money orders rather than one very large one. For example, four $500 money orders would cost less than one $2000 money order.

Steps To Fill Money Order?

  • Filling out a money order is pretty straightforward. Start by filling in the date in the top left-hand corner.
  • Then, write the name of the recipient in the “Pay to” section. In the “Amount” space, write out the amount of money you’re sending – be sure to include both dollars and cents.
  • In the memo section, you can write a brief note about why you’re sending the money order.
  • To finish, sign your name in the “Purchaser’s Signature” area.

How To Cash A Money Order?

  • If you’ve received a money order, you can cash it at a bank, post office, or other financial institution.
  • You’ll need to show identification and sign the back of the form.
  • The payer usually includes their name and address on the form, so the payee can cash it even if they don’t have ID.
  • Some institutions might charge a fee for cashing a money order.

How Can You Track A Money Order?

  • You can track a money order by its reference number.
  • This is usually located on the receipt from when you purchased it.
  • To track your payment, you’ll need to contact the issuer and provide the reference number.
  • The issuer will then be able to tell you whether or not the money order has been cashed.

When To Use Money Order?

There are a few different instances when a money order might be the best payment method.

  • If you’re sending money to someone who doesn’t have a bank account, a money order is a good option.
  • If you need to send a large amount of money and you don’t want to risk having it lost or stolen, a money order is a safe choice.
  • Money orders are also a good option if you’re making a payment and you don’t want the recipient to have your personal banking information.
  • Finally, if you’re making a payment and you need to be sure that the recipient receives the money quickly, a money order is usually the best choice.

When Not To Use Money Order?

While there are some situations where a money order is the best payment method, there are also some downsides to using them.

  • If you are purchasing something expensive, it is usually better to use a check or a credit card. This is because a money order can easily be lost or stolen, and if this happens, you will not be able to get your money back.
  • When you are sending money to someone you do not know well. This is because there is always the risk that they may not receive the money order, or that they could scam you out of the money.
  • If you need the recipient to Cash it quickly – since they will need to go to a post office or similar location to do so.
  • If you need to make a last-minute payment, a money order might not arrive in time.


Money orders are a great way to send or receive payments without the hassle of checks or cash. They’re cheap, easy to track, and more secure than carrying around large sums of cash. If you need to make a payment and don’t have a checking account, consider using a money order!

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