How do Money Orders Work?
1. Purchasing a Money Order: Buying a money order is pretty straightforward. You can get one with a debit card, cash, or sometimes a credit card (but remember, this might count as a cash advance). You might find them at places like credit unions, post offices, banks, and stores like Walmart. When you buy a money order, you tell the issuer how much money you want to send and who should get it. There’s usually a small fee, less than $15, that you will need to pay along with the money order amount.
2. Filling Out a Money Order: Once you’ve got your money order, you need to fill it out. You’ll have to write the name and address of the person or firm who should get the money. Then, you’ll also have to write your name and address. There’s often a spot where you can write a note about what the payment is for. And don’t forget to sign the front of the money order before you send it off.
3. Cashing or Depositing a Money Order: If you are the one getting the money, you’ll need to sign the back of the money order to cash it or deposit it into your bank account. Money Orders are considered safe because they are prepaid, and the money is guaranteed by the place that issued them. So, unlike personal checks, they can’t bounce because of not enough money.
4. Replacing a Lost or Stolen Money Order: If you lose a money order or it gets stolen, don’t panic. You can contact the place that issued it to cancel it and get a new one. You shall have to pay a fee for using this service. You will need to show them your original receipt, and it could take up to a month for them to process the replacement.