A money order is a fiscal document that is issued by a bank or any other financial organization, which enables the person whose name is mentioned on it, to receive a certain amount of money on demand. It is largely used by individuals who don't have checking accounts in banks.
It was a private organization in the UK, who initially started the money order system in 1792. The plan, however, wasn't successful and its responsibility was accepted by the post office in the 1830s, but it proved to be useful in the United States. It came to be seen as a secure way of sending money, with an assurance that the money will surely reach its destination.
This is a good option for someone who doesn't want to use a personal check. It's a simple and dependable way of purchasing goods and paying bills. It also serves as a substitute for, and can surely be used in a similar manner as a check. However, it slightly differs from a check, as it is paid for beforehand, and so cannot bounce or overdraw any person's account. As a result, several merchandisers prefer to accept a money order than a bank check.
If one needs to get a money order, he is required to follow some processes. He has to precisely determine the amount he needs to draft. This is important so as to ensure the correct amount of money is received that was paid for. Money orders are normally paid for in cash.
For getting one, debit cards or travelers checks can also be used. Some places allow the use of credit cards as well. Before purchasing a money order, you need to determine how the payment would be made. It can be bought at numerous different places around the town like; post offices, most of the banks, financial houses, grocery shops, several department stores, check-cashing services, etc. Nowadays, it is also available on the Internet.
However, there are some places where one would need to pay an extra charge for using this service. The charges range from around 50 cents - $200, depending on who is providing the services. After you have bought the money order, it is very important to fill it as soon as possible. If you don't fill it, and it is stolen or lost, it is simply like losing cash. But if you have filled the order form, only the individual whose name has been mentioned on it as the receiver, will be able to en-cash the order. Before filling the form, ensure that you are attentive to the directions. When you fill a money order form, it's recommended to use a pen and write on both sides.
After completing all the necessary formalities, you would be issued a receipt which is important and has to be kept safely. If the specified receiver claims of never receiving the money, you can call the phone number present on the receipt for assistance. You may also approach the place from where you bought the money order, for knowing the current status. It is better to always use the money-transfer services of a well reputed company or a bank.
Money orders have certainly proven to be beneficial and reliable instruments if used in a proper way. Moreover, they are a good substitute for carrying big amounts of cash.