A money order is a payment method that is highly secure. It is a preferred method to send money to someone. It is a safe option compared to sending cash or a check. The main feature of a money order is that it is a guaranteed payment mode, which means a third party other than you and the receiver is involved. The third party guarantees the payment[i]. The Post office, Western Union, or the bank guarantees the payment of the money order.
Why would you want a money order?
When someone needs to send money to you, money order is a safe option. A check can bounce leaving you with a sheet of paper with no value. Sending cash by mail is not possible. So, money order is a safe option, where the money is guaranteed. It is easy to encash and no tension of the money order bouncing.
Where to cash a money order?[ii]
If you have received a money order issued by the post office, then it is best to visit the post office to get the money order encashed. Banks would also accept money orders as it is guaranteed by the US Postal service. You can also cash in the money order at any credit union if you have an account there.
Western Union and Money Gram are outlets that help in money transfer. You can visit any of their outlets to cash a money order. Their charges are also reasonable.
You can even cash in your money order at retail outlets like Walmart or even at a grocery store. However, you must note that they would charge a fee. If you are willing to lose a part of the money received as charges, then you can cash in the money order wherever you want.
How to cash in the money order?[iii]
Once you receive a money order, you need to first decide where to cash it in. Remember that you can cash in the money order, only after you sign it. Take it to the place where you are going to cash it, like maybe a bank or post office. Sign the money order on the back and then deposit it.
You may need to produce proof of identity. A valid identification card like a driving license or a passport should be a good enough proof of identity. The proof of identity is insisted to ensure that the money is going to the right person. So, there is no chance of anyone stealing the money order and cashing it.
If you are cashing in the money order at a grocery or retail store, you have to pay a fee. The amount of the fee would be reduced from the money due to you. The cash would then be handed over to you, completing the transaction.
In case you deposit it in your bank account, then the money would be credited to your account and you can withdraw it later any time you want. You can use this option if you don’t want immediate cash.
Once you have received the money order, you may want to contact the sender as a matter of courtesy to inform that you have received the money.
Money order is a good way of getting money if you don’t want to deal in cash or check. You can cash it in at many locations. It is an easy and convenient way of receiving money.