It’s never fun owing someone money, but we all have to pay our debts.
One way to ensure your debt is paid is to send someone a money order. It’s easy, but you need to make sure to do it properly. If you’re unsure how to do so, or where you would even go to purchase a money order in the first place, read on!
When you need to pay a bill, but don’t want to pay it in cash or use a check or credit card, a money order is your best bet. Filling out a money order is similar to writing a check or direct deposit, and doing it correctly is equally as important.
How to fill out a money order:
- Write the recipient’s name
- Write your name and address
- Include the amount
- Sign your name at the bottom
For an in-depth breakdown of each of these steps, and more information on money orders, just keep reading!
Step 1: Fill in the recipient’s name
This portion of the money order will be the “Pay To” area. Here, you’ll write the name of the person or business that will receive the money order. They will be the only entity authorized to deposit or cash the money order.
|Tip: Make sure you’re using a pen to fill out the form!|
Step 2: Write your name and address
In the purchaser section of the money order, write your name and address. You’re the purchaser, so your information goes here. This section of the money order may also be titled “From”, “Sender”, or “Remitter”.
This information is needed should the recipient need to contact you with questions about the payment.
Step 3: Include the amount and what it’s for
This step may seem obvious, but make sure to include how much the money order is for! And, in the Memo portion of the money order, make a note of what the money’s for so there’s no confusion between you and the recipient.
Step 4: Sign your name
Just like a personal check, make sure to sign it! Your signature is important here, as it makes the money order official.
|Tip: Don’t sign the back of the money order where it says “endorsement signature line”. This is for the person or company to sign when cashing.|
Where to buy a money order
When you need a money order, there are many convenient places you can get one. Money orders can be purchased at:
- The Post Office
- Western Union
- Family Fare
- Any bank
When to use a money order vs a cashier’s check
Both a money order and a cashier’s check are helpful if you need a payment method that is more secure than a personal check or cash, or if you don’t have a checking account. There are some key differences between the two, so make sure you’re choosing the right method for payment.
- When to use a money order: Your purchase is $1,000 or less, you can afford $5 for the money order, or you don’t have access to a financial institution.
- When to use a cashier’s check: Your purchase is $1,000 or more, you can afford to spend $10 on cashier’s check, you have a bank account and access to a financial institution, or you want a little more protection.
As an example, you’d use a cashier’s check if you’re about to spend $6,000 on a used car. On the other hand, you’d use a money order if you’re mailing money to a friend for concert tickets to see your favorite band.
Signed, sealed, delivered
While sending someone your hard-earned cash isn’t always fun, it’s easy when you know how to properly fill out a money order. Sign it, keep the receipt, send it off, and wave your money goodbye. It’s for the best!
Don’t have time to run out and get a money order? Learn more about payment processing software and how your business can use these tools.
Jessica spends 12 hours a day on the internet managing security for web assets and loves her macha tea