What is a Money Order?

Consumers have tons of different payments options these days, from cash to credit cards and even digital wallets. However, money orders offer several unique advantages that other methods lack. Are you curious to learn just what is a money order? Read on to find out why so many depend on this secure and reliable form of payment.

Preparing a Money Order

When you need to send funds to another party, it's well worth the extra time to purchase a money order. Ranging in price from a few cents to a few dollars, this inexpensive form of payment provides extra peace of mind when moving money. Locations like banks, post offices, credit unions, check-cashing locations, and stores offer this service for your convenience.

Setting up your money order is simple. Just specify the recipient, the amount of money, and provide a signature on the form. Funds are guaranteed by a third party, reducing risks of bounced checks or stolen funds.

Cashing a Money Order

If you are the recipient, try to cash your money order at the same organization that issued it. Bring a form of I.D. to verify your identity, and then sign the money order to secure your funding. While the money is yours to use from that point, you may consider depositing the money order at your bank. The money order acts as a government check, so it's easy to deposit funding straight into your checking or savings account.

Advantages

Many consumers prefer the safety of the money order over options like personal checks, credit cards, and debit cards. Here are a few of the perks:

  • Money orders require little personal information. No bank account number or checking account is needed to securely transfer money.
  • Consumers may pick up an international money order to send money overseas. This is often a cheaper method of moving funds when compared to costly wire transfers.
  • Because consumers must specify a recipient, money orders offer a safer way to mail funds. Unlike cash, the money cannot be stolen.

Tips and Tricks

Thinking about issuing a money order? Don't forget your receipts! After completing the paperwork, you should receive a slip or carbon copy as proof of payment for your records. Additionally, this receipt will contain a tracking number to keep tabs on the payment as it makes its way to the recipient. If you need funding even sooner, consider contacting CashMax about our personal loan services in Texas. We'd be happy to help you out!

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