What Is A Money Order And How Does It Work?
Money orders are no longer a common form of payment, but they still fulfill a critical need that isn’t easily met by other methods of payment. Here’s what you need to know about what a money order is and when and how to use one.
What Is a Money Order?
A money order is a paper form of payment similar to a check, but unlike checks, money orders do not bounce and payments are guaranteed. Money orders do have some limitations, such as the ability to purchase more than $1,000 worth in one day.
How to Purchase a Money Order
If you need a secure payment option, you can buy a money order. Each money order has a small fee, which can be as low as a dollar at some stores, and you’ll get a receipt from the issuer that serves as proof of payment if the money order goes missing.
Why Use a Money Order
Money orders give unbanked and underbanked people more payment options, and they’re a safe way to send money through the mail because they can’t be stolen like cash, and they don’t give your recipient any private banking information. If a money order goes missing, there are systems in place to replace it.
How to Cash a Money Order
If you receive a money order, you can usually deposit it for free at your bank; however, if you prefer to cash it, you’ll need to go to your bank or a money order-issuing institution, where you’ll need to present a government-issued photo ID.
The Downsides of Money Orders
Money orders are frequently used in scams because they must be purchased in person and have a purchase limit (up to $1,000 at USPS), which limits their convenience. Fees can quickly add up if you rely on money orders to make regular payments.
Money orders are a low-cost option widely available at many locations across the country, and while they have some disadvantages, their usefulness as a secure payment method means they can be a wise choice.
Is there an age limit for money orders?
Money orders have no age restrictions for buyers, so practically anyone can buy them. However, there are some disadvantages to using this method, one of which is the limit on the amount of money that can be transferred.
Who can provide money orders?
A money order can be obtained at any of the following locations:
- You may have to pay a fee, usually around $5, but you should be able to walk into a local bank or credit union branch and request a money order.
- Western Union or MoneyGram Locations.
- CVS Pharmacy.
What is the easiest way to get a money order?
If you have a bank account, the simplest way to get a money order is to go to the teller and ask for one. Some banks charge a small fee for money orders, but many offer them for free. Some banks also offer cashier’s checks, which are similar to money orders.
Where can I get a money order for free?
Money Orders for Free. The Best Deal You’ll Find.
- Why pay a fee to buy a money order elsewhere when you can get one for free at Amscot?
Can you make a money order out to cash?
Cash a money order at the same location where it was issued, whether that’s a bank branch, post office, or other location. Check-cashing locations, convenience stores, and grocery stores are other options, but be aware of fees, and be prepared to show identification wherever you go.
Do banks do money orders?
Banks and credit unions sell cashier’s checks and money orders, but money orders can also be purchased at many other locations, including various grocery and convenience stores, Western Union, the post office, and Walmart.
What’s the difference between money order and check?
Money orders, like personal and cashier’s checks, are safe ways to pay for a specific amount of money. They work in the opposite way that checks do: you exchange money (usually cash) for a piece of paper that represents that amount of money.
Do Walgreens do money orders?
Walgreens does not offer money orders, but it does partner with Western Union to offer a money transfer service that is similar to money orders. Transfers made at WU kiosks in Walgreens stores cost $11 for standard 1-2 business day transfers and $12.50 for instant transfers.
Does CVS do money orders?
Fast Answer: CVS sells MoneyGram money orders for $1.25 each, with a maximum amount of $500 per money order; if you need more, you’ll have to buy multiple money orders. To purchase a money order at CVS, go to the checkout register and ask the clerk to sell you one.
Do you need ID to buy money order?
4.2 An applicant for a $1,000 or more money order must show identification in the form of a valid driver’s license, passport, or other government-issued photo identification.
Where is the best place to get money orders?
In 2020, there are nine best places to buy a money order.
- Your Local Bank.
- USPS. Your local post office will almost certainly sell money orders.
- The Credit Union. Last but not least, credit unions will almost always sell money orders and their fees are among the lowest.
How much does a money order cost at the bank?
Money orders are typically used for smaller amounts than cashier’s checks, which is reflected in the fee, which can range from $0.35 to $2.00 depending on where you buy one. Money orders are typically capped at $1,000, though some places may limit them to smaller amounts.
How much does a money order cost at CVS?
Customers can buy money orders for $1.25 each with a $500 limit at any CVS checkout counter with a valid government-issued photo ID as of 2021.
What does Walmart charge for a money order?
While the exact charge varies by store, a Walmart money order costs no more than $1, which is a very competitive fee when compared to the U.S. Postal Service, which charges $1.50 for money orders up to $500 and $1.95 for money orders between $500 and $1,000.