Money orders are a reliable way to send money securely, especially if you don’t have a bank account or need guaranteed funds. They’re commonly used for paying bills, sending cash to family, or making purchases when checks or cash aren’t an option. For immigrants, money orders can be a lifeline as they establish themselves in the US financial system.
At Remitly, we aim to make managing your money simpler, whether you’re sending funds internationally or handling payments locally. This guide will walk you through everything you need to know about money orders: what they are, why you might use one, and most importantly, how to fill one out correctly.
Understanding money orders
Money orders are a trusted payment method, but what exactly are they, and why might you choose one? Let’s break it down.
What is a money order?
A money order is a paper document that works like a check but is prepaid, so it’s guaranteed not to bounce. You purchase a money order with cash or a debit card for a specific amount at places like the US Postal Service, banks, or retail stores. It’s a secure way to send money and is widely accepted by both businesses and individuals.
Why use a money order for transactions?
Money orders are especially useful when other payment methods aren’t an option. Here’s why they’re a great choice:
- Guaranteed funds: Since you pay upfront, there’s no risk of insufficient funds.
- No bank account needed: Perfect for those without a checking account, common among new immigrants who are setting up their finances in the US without a local bank account.
- Privacy: Unlike checks, you don’t share sensitive bank details, reducing the risk of fraud.
- Widely accepted: Many landlords, utility companies, and small businesses prefer money orders over personal checks.
- Tracking: Money orders come with a receipt and tracking number, allowing you to confirm if the payment was received and cashed.
Differences between money orders and personal checks
The main difference is that the funds are guaranteed. A money order is prepaid, so the recipient knows the funds are available. A personal check, on the other hand, draws money from your bank account when cashed, and it could bounce if your balance is too low.
Money orders also offer more privacy since they don’t display your account number. However, money orders must be purchased (usually in person), and they often come with a maximum limit (typically $1,000 in the United States) for a single transaction, whereas personal checks can be written anytime from your checkbook for larger amounts.
What you need to buy a money order
Before you head out to purchase a money order, make sure you have the following:
Required information
- The exact name of the recipient (payee): This is the person or business you’re paying.
- The exact amount: Know exactly how much the money order should be for.
- Your information: You’ll need to provide your name and current address for the purchaser section.
Accepted payment methods
You’ll need funds to cover the amount of the money order, plus the purchase fee. Accepted payment methods include:
- Cash
- Debit card
- Traveler’s checks
Steps to fill out a money order
Follow these steps to correctly fill out a money order.
Step 1: Filling out the payee information
Start by writing the name of the person or business receiving the money in the “Pay to” or “Pay to the Order of” field. Only the named payee can cash or deposit the money order, so make sure to spell the name clearly and correctly. Use ink to avoid errors.
Example: If you’re paying your rent, write “Sunny Apartments LLC” or your landlord’s full name.
Tip: Fill this out right after buying the money order to prevent anyone else from claiming it if lost.
Step 2: Completing the purchaser section
Next, add your details in the “Purchaser,” “From,” “Sender,” or “Remitter” field. This includes your full name and current address, which helps the recipient or issuer contact you in case of any issues.
Example: Write “Maria Gonzalez, 123 Main St, Apt 4B, Chicago, IL 60601.” Some money orders have a separate address field; fill that out too for clarity.
Step 3: Adding a memo or account number (if applicable)
If you’re paying a bill or need to specify the purpose of the payment, use the “Memo,” “Payment for,” “Re:” or “Account Number” field. For instance, include your utility account number to ensure the payment is credited correctly. You can also add a note about the payment’s purpose (e.g., “May Rent,” “Invoice #123”).
Example: For an energy bill, write “Account #123456789.” Even for personal payments, a memo like “Gift for Juan’s birthday” can help clarify the purpose.
Step 4: Sign the front (purchaser’s signature)
Sign your name on the front of the money order in the “Purchaser’s Signature” field to make it official. Find the line labeled “Purchaser’s Signature,” “Signature,” or “Signer”. This is usually found at the bottom on the front. Do not sign the back; that’s for the recipient to endorse when cashing or depositing the money.
Step 5: Keep your receipt
When you purchase a money order, you’ll receive a detachable receipt stub or a separate receipt. Keep this receipt in a safe place. It contains the money order’s serial number and tracking information, which you’ll need if the money order is lost, stolen, or damaged, or if you need to verify if it has been cashed.
Where to purchase and cash money orders
You can purchase money orders in many convenient locations, including:
- US Post Offices (USPS)
- Banks and credit unions (note: fees may be higher, and some only serve account holders)
- Retail stores like Walmart, Kroger, CVS, and 7-Eleven
- Check-cashing stores
You can usually cash a money order at:
- Your bank or credit union: This is often the easiest and most cost-effective method
- Post offices: You can cash USPS-issued money orders here, but cash limits may apply
- Retailers: For example, you can cash a Walmart-issued money order at any Walmart location
- Grocery or check-cashing stores: These may charge a fee for the service
As of 2024, USPS no longer sells international money orders.
Remitly doesn’t offer money orders, but we do offer fast and secure international money transfers to over 170 countries, which can be a great alternative when sending money abroad.
Tips for secure and effective use
Follow these tips to use money orders safely and avoid common mistakes.
Choose reputable issuers and cashing locations
Purchase money orders from well-known, legitimate sources like USPS, banks, or major retailers. Advise the recipient to cash the money order at a trusted location, preferably their own bank or the issuer’s location, to avoid high fees or processing issues.
Treat blank money orders like cash
Until you fill out the “Pay To” line, a money order is almost like cash. Anyone could potentially write their name and try to cash it if they find it. Fill out the payee information as soon as possible after purchase to protect your money.
Double-check all details for accuracy
Before you leave the purchase location—and definitely before sending it—confirm all information is filled out correctly. Check:
- The recipient’s name is spelled correctly
- The amount is right
- Your personal details are accurate
- You’ve signed the front of the money order
Mistakes can lead to delays or prevent the money order from being cashed.
Keep your receipt in a safe place
Hold on to the receipt that comes with the money order. This is essential proof of purchase and contains the tracking info and serial number. Keep it separate from the money order itself, but somewhere you can easily find it until you’ve confirmed the payment was successfully received and processed.
Beware of potential money order scams
Scammers sometimes use fake or altered money orders. Be cautious if:
- Someone sends you a money order for more than the agreed amount and asks you to wire the difference back. The money order is likely fake, and you’ll lose the money you send.
- You receive a money order unexpectedly or from someone you don’t know.
- The money order looks altered, especially the amount.
Tip: USPS money orders have security features like watermarks and threads you can check. If you receive a money order you’re unsure about, try verifying it with the issuer before attempting to cash it.
FAQs
What should you do if you make a mistake on a money order?
Unfortunately, you generally cannot erase or cross out mistakes on a money order, as this might invalidate it. If you haven’t purchased it yet, ask the cashier for a new blank one. If you’ve already purchased it and made an error:
- Contact the issuer immediately to ask about their policy.
- Some issuers may allow minor corrections if you initial them, but many don’t.
- The safest option is to cancel and request a refund (usually for a fee) and purchase a new one.
- Don’t attempt to alter the dollar amount; this is illegal and considered fraud.
What’s the maximum amount for a money order?
In the U.S., the limit is generally $1,000 per money order. Some places have lower limits (e.g., $500 at 7-Eleven). If you need to send more, you’ll have to purchase multiple money orders and pay a separate fee for each.
Can I buy a money order with a credit card?
Some places might allow it, but your credit card company often treats it as a cash advance, which usually comes with high fees and interest rates. Paying with cash or a debit card is generally recommended.
Do money orders expire?
Generally, domestic money orders don’t expire. However, some issuers might charge inactivity fees after a certain period (often 1–3 years).
Who signs the endorsement line on the back?
Only the recipient (payee)—the person or business named in the “Pay to the Order Of” field—signs the endorsement line on the back of the money order when they’re ready to cash or deposit it. As the purchaser, you should never sign the back.