How To Make Out a Money Order

Introduction

A money order is a method of processing payments, which is commonly used where cash or checks are not acceptable. They look a lot like an ordinary check and virtually guaranteed to process a payment. When you apply for a money order, you will be required to deposit some money with the issuer, which guarantees the payment on the transaction. You can apply for a money order through a financial institution, post office or retail store. Here are some of the tenets that make a money order and how you should go about making out a payment through one.

Step 1

Sometimes processing a payment with cash can be unsafe. For instance, if you send the cash through the mail, it may never reach the recipient if it is intercepted along the way. To make a money order for payment is a lot safer, because it is only payable to a specific person or organization, just like a check. You can also keep track of a money order, to confirm whether it has been deposited. It will also allow you to stop a payment, if you choose.

Step 2

Considering the similarities between a check and a money order, most people are often confused as to the mode payment they should use to make a money payment. Even though the underlying method of payment is similar between the two methods, a money order offers a greater level of security over a bank account than an ordinary check.

Step 3

When you process a payment with a check, your bank account information will be displayed at the bottom of the check. This can be a security issue in the wrong hands, where by some people may attempt to print out fake checks and use your bank account details to process payments. If you don’t trust or know the person you intend to pay for something, you should make a money order to the person instead. A money order will allow you to make payments, without having to share sensitive information.

Step 4

In some cases, you may have to make a money order because the seller requested it. Most sellers are aware that a money order will not bounce like a personal check and hence will prefer it as a mode of payment.

Step 5

Individuals without a checking account will also find money orders to be quite useful at processing payments. All you have to do is to walk to a retail store, post office or bank and make a money order request. Their processing fees are typically higher than those charged by a checking account. In addition, there are also limits as to how you can use a money order.

Tips

The first step in determining how to make a money order is to consider where to get one. You can apply for a money order through a bank, credit union, retail store or post office. The fees charged and limits on amounts will vary from institution to another. Therefore, look for one that will meet your financial needs.

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