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What Is a Money Order?

A money order is an option a person can make if he wants to send money through the US Mail without having to issue a personal check. Money orders are still a popular way of sending money or paying bills. In fact, a lot of people would prefer getting a money order instead of a personal check.

By definition, a money order is a method of ordering a particular amount of money with the intent of using it to pay another person. Getting a money order is easy. The person goes to the post office, a grocery or convenience store and pay for the money order with the monetary amount that he wants to send. He also pays a small amount that represents the fee of the establishment that sells the money order. After this, the money order is sent to the person who he wants to pay.

A great advantage of a money order is that the amount that the person wants to send must be paid in full before the money order is sent. This means the person who will be paid is guaranteed to get the money that is due him. Another advantage is that a money order has no expiration, thus, the payee can have it encashed at any time. Additionally, there are establishments like Western Union that guarantee the money. This means the buyer of the money order won’t have to worry that the money will suddenly be withdrawn from his account at a time when he does not expect it.

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