How to Fill Out a Money Order

Money order is one of the oldest form of payment. If you want to pay for some pre-specified money, you could use a money order. Money order is considered to be a safer way of payment, compared to a personal check. The main reason is that there is no possibility of it bouncing, in case of money order as it is in the case of check. And that is also the reason why it is more trusted than a check. Domestic money order can be purchased till only a specific amount, for example, in USA the domestic postal money orders are restricted to $1000 only.

Why Use Money Order?
Money orders were started in USA for those people who did not hold accounts. These people couldn't send money because of no account. Money orders made it possible for them to send money. Money also comes in handy if you do not have a credit card. Nowadays, money orders are widely used for payment in other countries, as personal checks are of no use in any other country than yours. There are special international money orders which are to be utilized for international transactions. Many a time, checks take time to get cashed specially, if there are bank holidays or if the person issuing the check is not in town, etc. At such times, money orders come to our help as money orders can be cashed without delay.

Another use of money order is that if you have opened a new account but you haven't got a check book yet, you need to issue a check but do not want to use the old bank's check. If you do, you won't be able to close the older account. In this case, you can use a money order, as it allows you to use the funds in the first account without waiting for someone to cash a check or receive. The last use of money order is not so common, but it is also not completely uncommon! Suppose you are buying some gadget or anything from a person you do not know well, you obviously won't take the risk of taking a check from a stranger, as there are high possibilities of forgery. Taking money form the ATM is also not possible if the amount is more than $500. So in this case, money order is the best option, as the person will have to make the payment in front of you and so the question of cheating will not arise.

So these were some of the uses of a money order. As you must have observed, these uses exist even today and that's why, unlike letters and other postal things, money order hasn't become bygone still!

How to Fill Out a Money Order Properly

Buy: Many people are unaware of the places where one can buy a money order. Money orders can be bought at many places like post office, banks, western unions, convenience stores, check-cashing businesses and not only this, even at customer service desks of the grocery stores! A money order costs about 50 cents, depending on the place from where you are purchasing it. Most banks charge less than $1. You can buy a money order with cash or even with a debit card.

Payee: In the column of "payee" or "pay to" or "pay to the order of", write the name of the person to whom you want to send the money order to. If it is to be sent to a company, write the company's name, and not of the manager's or the CEO's.

Remitter: The column which says remitter or purchaser or from, write your name as you are the person who is sending the money order. If there is a separate column for account number, put your account number there. If there is no separate column, write your account name above your name. Sometimes, "memo", C.O.D. no., "Used for"; is mentioned instead of account number. You are supposed to fill in the account number there.

Address: In the space provided for address or purchaser's address, write your address i.e. the sender's address and not the receiver's address. There might be a separate space for writing the person's or company's name to whom it is being sent.

Sign: Do not sign the back of the money order, as that space is generally for the receiver's signature. If space is not specified for you signature, sign the front side of the money order.

Receipt: Last but definitely not the least, is the receipt. It is very necessary to keep the receipt as it is the proof that you have done a transaction. Generally, the money order slip itself has a carbon copy, which works as your receipt.

One last tip, do not carry blank money order with you because if it is lost, someone else can spend it.