A money order for traders and wholesalers is the primary source of taking payment especially when the transaction is international in nature. A money order, like a cheque is issued by Governments and Banking and Financial Institutions. The money order allows a stated payee, whose name is mentioned on the document to receive pay on demand. The authenticity and viability of a money order comes from the fact that post offices primarily accept money orders and therefore due to the high frequency of post offices scattered across the UK are a vast chain which issue money orders up to 250 pounds and cash money orders as well provided they are domestic money orders. There are some charges related to that. Other than that, your bank can cash it however fees are generally higher when we talk about non-governmental sources. So here is an informative segregation as to which places do cash money orders –
- Post office – While a post office will accept to cash in domestic money orders, the complications may be higher if international money orders are sourced. Many forums suggest that local post offices do not have the authority to do that. On the contrary head offices have that authority. The charges associated with issuing money orders starts from 50 pence to 12 pounds 50 pence and therefore is still economical. Whereas there are hidden charges for cashing the money order. A lot of times, there are no charges with cashing them.
- Private Fund Transfer Organizations – Western Union – The extent to which Western Union encashes money orders is debatable; however, money orders are encashed. Again, it might also be the case that the branch that issues money orders does not encash them. So, it is a bit of a luck game. Mostly big branches do accord the service of encashing money orders.
- Banks – Every bank does encash money orders. However, the catch with this option is the fee. Fees charged are extremely high. Private organizations tend to charge higher than the post office in all matters.
- Banks (in Case of International Money Orders) – In case of international money orders, domestic banks are unable to assist in such hence, an account in a bank of that county on UK soil might assist in securing the encashment of the money order. Since wire transfers are the most reliable source of transferring money these days, money orders are slowly moving away from international trade situations.
Cashing the money order has been seen to be a challenge however government offices like that of post offices have always been welcoming of money orders. The intention to encash the money order should come from the holder of the money order. Since, money orders generally do not have an expiration date, many institutions charge a fee if not encashed within one to 3 years of the order over and above the normal encashment charges. An objective judgement there remains with the fact that money orders and its viability will wane off the UK as bank transfers and wire transfers are actuated. Secondly if the money order transaction numbers are not kept safe, then it is extremely hard to track the status of the money order, therefore even before encashing them it is important to follow due procedure and keep info regarding the transaction numbers.