August 26, 2024

How to Fill Out a Money Order: A Step-by-Step Guide

Cash, credit cards, and checks work for most situations. But they have downsides. Cash is at risk of theft, credit cards are expensive for a merchant to process, and checks can void or bounce.

When these more common forms of payment aren't the right fit, money orders provide a secure and reliable alternative. Money orders are paper forms that you pre-pay for and send to a recipient. Unlike cheques, they can’t bounce because they're already paid for. And unlike cash, money orders are safer to send through the mail because only the listed recipient can cash them.

While they aren’t common compared to other payment methods, learning how to fill out a money order can save you if you do need to send or cash one.

What's a money order?

A money order is a paper form you can get at a bank, post office, or other institution to send money to another person. It functions similarly to a check — you specify the payee and amount. But you provide the funds when you buy the money order, not when someone cashes it. All you have to do is pay a processing fee so the provider can keep the money in escrow until the recipient gets it.

Money orders are a reliable method of payment, especially in situations where personal checks aren’t accepted or cash isn’t practical or safe. They’re also useful for transactions where the recipient requires a guarantee of payment, like for rent, utilities, or mail-order purchases. The best part is that you don’t need a credit card or even a bank account to pay.

How do money orders work?

When you buy a money order, you essentially give the money to a third party for safekeeping until it reaches the recipient. That’s what makes them so secure — especially if you’re sending a large amount of cash at once.

Here are the basic steps to buy a money order (find a more in-depth how-to below):

Go to an issuer, like your bank or a nearby post office.
Buy the money order. The issuer will give you a form to fill out. You may also need to show ID.
Fill out the form with your name and address, the payee’s name and address, and the amount.
Pay a processing fee.
Send the money order in the mail. Usually, the issuer can send it for you.
Keep the receipt in case something goes wrong.

And here’s what happens when the recipient gets it:

The recipient takes the form to their bank, a post office, or another institution that handles money orders.
They sign the back of the form and show their ID.
They receive the money right away.

When do you need to use a money order?

Most people never have to use a money order in their lives. If you have a bank account, you’ll likely send money in other ways, like through a check or a service like PayPal. But that doesn’t mean you’ll never encounter a money order.

Since they’re a guaranteed form of payment that can't bounce, money orders are most common in situations where trust or reliability could be a concern or where a business wants to avoid expensive credit card processing fees. For example, if you need to send a lot of money to a relative who doesn’t have a bank account, a money order might be your best bet. The same goes for if you’re paying a company a large deposit, like for home improvement projects or car sales.

Where can you get a money order?

A wide variety of businesses issue money orders. There isn’t a big difference between them, although some have higher processing fees than others.

Here's a list of some places that frequently offer money orders:

USPS post offices
Convenience stores
Check-cashing stores
Western Union locations
MoneyGram locations
Banks
Credit unions
Walmarts
Grocery stores

5 steps to fill out a money order

Here are the steps to fill out or address a money order form:

1. Fill in the recipient's name. Write the full name of the person or business receiving the money order in the "Pay to" or "Pay to the order of" field. Make sure to print neatly in this field using a pen.

2. Write your address. In the "from," "remitter," or "sender" section, clearly add your civic or PO Box address.

3. Include any relevant account number. If this payment is for a bill, debt, or other service with a dedicated account number, include it in the memo field to make sure the payment applies to the correct account.

4. Sign your name. Add your name in the purchaser's signature section on the front of the money order.

5. Keep the receipt. Money order receipts include a tracking number to verify if the recipient has cashed it or check if someone placed a replacement request, which happens if it’s lost or stolen. Always keep your receipt until you’re certain the recipient has cashed the form. Without the receipt, the money order is effectively untraceable.

Be extremely careful when filling out the money order correctly. Any accuracy or legibility issues could prevent the money order from being cashed or processed correctly.

Pros and cons of money orders

Learning how to use a money order offers a number of perks. Here are some pros:

Guaranteed payment. Money orders are prepaid, so they can't bounce like personal checks.
No bank account required. You can get a money order without needing a bank account, making it accessible to unbanked and privacy-focused people.
Trackable. Money orders have unique serial numbers, which let issuers trace them if something happens to them during transit.
Privacy protection. One of the biggest concerns with checks is that a person's bank account details are right there, so if someone else finds it, they can use it for fraud. Money orders don't share any personal banking details, allowing for better privacy and security.

But this payment method isn’t perfect. Here are some cons:

Purchase fees. Money orders typically charge processing fees, which vary depending on the amount and location of purchase. A person can expect to pay as little as $0.35 to $2 at non-banks, while banks typically charge between $1 and $5. Fees can be as high as $10, so shop around for the best deal.
Maximum amount limits. Most issuers set a limit of $1,000 per money order. For large purchases, you might need to send more than one.
Less convenient. Purchasing and cashing money orders requires visiting a physical location, which is time-consuming compared to electronic forms of payment.
Replacement process. If lost or stolen, replacing a money order can be lengthy, inconvenient, and potentially costly. You have to return the receipt to the company from which you bought it and go through its replacement process.

Frequently asked questions

Still confused about money orders? Here are some frequently asked questions:

How much does a money order cost?

Money orders typically cost between $1 and $5, but it depends on the issuer.

How do I cash a money order?

You can cash a money order at banks, check-cashing stores, and the issuing location, like USPS locations and some grocery stores.

Are money orders safe?

Money orders are generally safe because they’re prepaid and guaranteed by the issuer. But no payment method is 100% secure from fraud. Only send and accept payments to and from people you trust.

Can I use a credit card to buy a money order?

While some issuers may allow credit card purchases, credit card companies often treat money order purchases as cash advances, which can land you extra fees and interest charges. Cash or debit is the best way to go.

Access your cash before payday with EarnIn

Are you stuck in a financial pinch? Don't wait for payday. EarnIn's Cash Out tool has you covered. Access up to $100/day and up to $750 every pay period — so you have what you need to keep moving forward, whatever life sends your way.

Download the EarnIn app today and experience money at the speed of you.

Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.

1. EarnIn is a financial technology company, not a bank. Banking Services are provided by Evolve Bank & Trust, Member FDIC. Subject to your available earnings, Daily Max and Pay Period Max. EarnIn does not charge mandatory fees for use of its services. EarnIn does not charge interest on Cash Outs. EarnIn services may not be available in all states. Restrictions and/or third party fees may apply, for more information please visit http://EarnIn.com/TOS