A money order is a common way to pay a bill or individual when you don’t want to use a credit card, bank card, or cash. Knowing how to fill out a money order correctly is essential to ensuring that your funds are delivered on time and accurately.
Information Required to Fill Out a Money Order
Each money order may have a slightly different format, depending on the institution the money order is being issued from. It’s currently available at most post offices, financial service companies like Western Union, retail stores like Walmart, and even some regular banks. The process is similar to that of
.
* Recipient’s account number;
* Form of payment (most issuers typically accept cash, traveler’s checks, and debit cards). How to Fill Out a Money Order
Knowing how to fill out a money order is incredibly useful, particularly if you plan to use this form of payment often.
1.
Name:
Write the full name of the business or person you are paying with the money order next to the field titled, “pay to,” or “payee” or “pay to the order of”. If you leave this section blank, someone else could cash your money order instead of your intended recipient.
2.
Add your address:
In case the recipient needs to contact you regarding your payment, you may need to provide your
. However, if you are concerned about privacy, you might be able to leave this section blank, though you should check with your issuer like
or USPS. But, note that the recipient’s address is required, as is your name.
3.
Additional information:
In order for your money order to be processed correctly, you may need to provide additional information, such as your account number or any other notes which may be essential for your particular
. You can provide this in the “memo” section or in front of the document if there’s no specific section for this.
4.
Sign
: Next, some money orders require a signature on the front of the document. But, do not sign the back of the document as this is where the recipient will sign to endorse the money order.
5. Finally, though not an essential aspect of filling out your money order, it can be helpful to keep your receipts or a copy of the money order or even any documents you receive with the money order in case there’s a problem with your payment. If you want to track or even cancel your money order, these may be necessary.
Advantages and Disadvantages of Money Orders
For a buyer, a money order is an extremely secure method of payment. Moreover, compared to checks, a money order protects private information, such as your bank account number, and is useful for transactions that don’t permit payment via check or
.
You can find a money order quite easily, too, as it’s available at most post offices, financial service companies like Western Union, retail stores like Walmart, or even some regular banks. A money order additionally can’t bounce like a check, as buyers must use cash or a check to purchase one, which additionally makes it a highly desirable method of payment.
That being said, money orders have waned in popularity compared to financial technological forms of payment like Zelle or Venmo. Not only are these methods of payment easier and cost less than a money order (which only costs a few dollars), they are additionally much faster.
Moreover, money orders have limits, which means that large payments cannot be made with a money order (or would require multiple money orders, which is why a
may make more sense, in that case). Finally, with a money order you need to pay a small fee each time you want to use one versus a check or a debit card which is often free and more affordable.
Ultimately, knowing how to fill out a money order is a valuable skill that will come in handy at some point, guaranteed!