Money orders resemble checks both physically and functionally. You can handle it as a check if it's made out to you. To get your hands on the funds, you can cash the money order or deposit it into a bank account. A sheet of paper is that unless you put it to good use. Numerous establishments, such as banks and convenience stores, accept money orders for payment.
What Are the Best Methods for Depositing a Money Order?
There are several places where you may cash orders. However, if you already have an account at a bank or credit union, this is typically your best option.
Bank or Credit Union
When you cash a check, your bank or credit union often provides this service free of charge. Your money order's entire value may not be available straight away. To see how much money you have access to right now, check your bank's funds availability policy.
Deposited funds will be available in your bank account the next business day. 1 If you don't live near a branch of your banking institution, you may have a better choice.
Provider of the Money Orders
If you don't have a bank account or cannot visit a branch, go to the company location that issued the money order. The company that produces and backs the money order is known as the issuer.
A USPS money order can be cashed at a post office, while a Western Union money order may be cashed at a Western Union office. In addition to reducing fees, working directly with the issuer will boost your chances of swiftly receiving the whole amount of the loan.
Various Other Alternatives
Money orders can also be cashed in retail locations like check-cashing centers, gas stations, and supermarkets. Money orders can often be cashed for free at the customer service desk of some bigger retail establishments, mainly grocery shops, which provide Western Union or MoneyGram services. Customer support representatives should be able to help you evaluate your alternatives if you are unable to do it yourself.
Depositing Money Orders: A Step-by-Step Guide
The money order should be deposited into your bank account rather than cashed if you don't require the entire amount immediately. You can withdraw money later if necessary, and your bank account will keep your money secure.
You can transfer money from your checking or savings account to another account if you need it for something else. If you don't already have a bank or credit union account, you can use a money order to make your first deposit.
Cashing in Money Orders: The Costs
When you cash a money order outside your bank, you should expect to pay a charge. Transaction fees might range from a few cents to a few percent of the total sale price. Check-cashing and convenience shops, which frequently charge higher costs, are two places where these charges can quickly mount up.
There are times when they don't make it obvious how much they're charging. MoneyGram money orders may be cashed at most Walmart shops for $4 or $8, depending on the amount, up to a maximum cost of $1,000.
Filling out a Money Order
Some banks, credit unions, and the U.S. Postal Service provide money orders in their brand and format. All Walmart and CVS locations sell MoneyGram, whereas 7-Eleven and other supermarkets and check-cashing establishments have Western Union. The vendor will imprint the date and the amount on the money order before handing it over to you to finish.
Money Order Delivery: A Quick Guide
Detach the receipt once you've completed all the fields. As long as the money order is still in your possession, you'll record your payment thanks to the official identification number on this stub. Now that you have a completed money order and a receipt, you may either hand-deliver or mail the money order to your receiver. The intended receiver can only cash it.
Avoiding Common Errors
Even though a money order appears to be simple, there are a few pitfalls to watch out for. Ensure that the receiver and payee are spelled correctly and that all of the order details are complete. Orders can be canceled if the necessary information is left blank or if a name is misspelled.
Money Order Benefits and Drawbacks
Using a money order has the apparent advantage of being simple. You may get a money order at a big-box store or even your local supermarket. To buy a money order, you don't even need access to a bank account.
You may be discouraged from using one of the drawbacks that outweigh the benefits. You'll have to pay a charge when you buy a money order, unlike when you write a check. It is easy to steal a money order if it is lost and not filled out appropriately.
