Money order is a postal instrument that is used to transfer money to distant geographical locations. Though it is an easy way to transfer funds, the limit, however, becomes a hindrance in some cases.
Sending or conveying money to people at different geographical locations has been a precarious issue for quite sometime. There are several different methods that are used by people, such as, wiring through the bank account, or writing out a check and posting it. A money order, is, however, considered to a much better option, as it is safe, easy to use, and much more reliable. The only drawback is that there is a certain limit to the amount that can be wired which might become a hindrance to some people.
What is a Money Order?
The person who wants to send out the money order gets the instrument at certain locations by paying the amount that he wants to send. The sender of the money order pays the requisite amount plus a commission or fee that is charged by the sending establishment. The money order is then posted to the recipient. Upon receiving the money order, the recipient can encash the order with establishments such as banks and the post office itself. Since it is prepaid instrument, there is a zero chance of default. The two best establishments that will encash your money are banks and post offices.
Postal Money Order Limit
Though money order is a great and safe service, there are certain negative aspects to this service. Cases of fraud and money laundering have been detected in the money order service. Robbery and certain unethical practices have led to a considerable number of problems and controversies in the past.
This has promoted all money order services to levy a limit on the amount that can be conveyed. As of 2008, the United States Postal Services maintain limits for the amount. In case of a domestic postal money order, the maximum amount is $1,000, and in case of international money order the amount is $700.
The limit is basically a safety feature of the service. With the limit, fraud, counterfeiting, and robbery issues have reduced drastically.