What is a Money Order?
A money order is a safe way to pay for things, like a prepaid check. It’s a piece of paper issued by a post office, government, or bank that tells the person getting it to pay someone else a certain amount. Money Orders are great because they’re prepaid and guaranteed, so they’re safe to use when checks aren’t accepted or you need a secure way to pay. They’re convenient for rent or bills when you can’t use cash.
Key Takeaways
- Money Orders are a safe way to pay because only the person you’re paying can cash or deposit them.
- If you keep the receipt, you can track your payment and get your money back if the money order is lost or stolen.
- If you need to refund a damaged or spoiled money order, the United States Postal Service will replace it for free if you return the part you can cash along with the receipt.
- If you need to check if a money order is real, you can call the U.S. Postal Service Money Order Verification System to check.
- You shall cancel a money order if it hasn’t been cashed. Just contact the issuer’s customer service or use their website to track it and start the cancellation process.
Table of Content
- What is a Money Order?
- History of Money Order
- How do Money Orders Work?
- Advantages of a Money Order
- Disadvantages of a Money Order
- How to Buy a Money Order?
- Why Use a Money Order?
- How Much do Money Orders Cost?
- Difference between Money Orders and Cashier’s Checks
- Alternatives to Money Orders
- How to Fill Out a Money Order?
- Money Orders – FAQs