How to Fill Out a Money Order
Most people prefer to use money orders because they are safer than checks for both parties, i.e. the recipient and the purchaser. As opposed to a check, a money order is prepaid. This mean is cannot “bounce” nor end up resulting in additional costs for any of the people involved in the transaction. No bank accounts are needed in order to sell something with them. Thus, the recipient can receive its cash easily. Here are all the steps you need to know in regards to how to fill out a money order.
How to Fill Out a Money Order
Step 1: Buy Your Money Order
First of all, you have to buy a money order for a specific amount. Check that the number printed in the money order is the same as the amount you paid. This way you will be getting a money order for the exact amount you paid. Places in which you can buy money orders include the Post Office, banks, USPS, and Western Union among others. For small amounts and easy to fill money orders, buying them from the Post Office is the best option. If the amount is up to $1,000 you can buy it from USPS.
Step 2: Fill the “Pay to” Line
Given the fact that the money order has already been paid for, the first thing you should do is to fill the “pay to” line. This will avoid any random person getting the money by filling his own name in case the money order is lost. You should write in clearly distinguishable letters the name of either the business or the person you will be paying the money to. Preferably use a black ink pen to fill it out. Blue ink pens are also acceptable. Also, make sure you spell the person or business’ name correctly.
Step 3: Fill the “From” Line
This line should have your name on it. Depending on the money order, the “from” line can vary. Some of them have “purchaser”, “remitter”, or “sender” lines instead. You should write your full legal name also with black or blue ink. Again, make sure your name is written legibly.
Step 4: Sign the Money Order
You should sign the money order in the front. Usually, there will be a space labeled “signature” or “purchaser’s signature”, fill it with your own signature.
Step 5: Do not Sign the “Endorsement Signature” Line
At the back of the money order, there should be a line called “endorsement signature”. Don’t sign it. The person that will cash out the money order should be the one signing it.
Step 6: Fill the “Address” Line
Some money orders have only one address field. If this is the case with your money order, write your current mailing address in that field. If the money order has two “address” fields, put the address of the person you are sending the order to in the second one.
Step 7: Fill the “Memo” Line
The “memo” line is designed to explain the reason behind the payment being made. If the payment is for a loan you owe to someone, put “Debt payment”. If you are going to give a present to someone, put “Birthday Gift”, or “Gift”. In case you are paying a bill, include its due date and your account number. If there is any other info the person receiving the money needs, make sure to include it in the “Memo” line.
Step 8: Don’t Throw Away Your Receipt
Your money order will come with either a carbon copy beneath it or a receipt attached to it. Make sure you keep it. It will help you tremendously in case the order is lost. It will also help in the case of the other party denying they reclaimed the money when they did in fact cashed it in. Review the receipt’s tracking number as this will allow you to know the money order’s status. Thus, the receipt will allow you to get your funds back in case the money order gets lost and it will also help with the payment verification.
By now, you have all the information you need on how to fill out a money order. Follow the above-mentioned steps carefully and meticulously so you can fill it out with no mistakes. This will ensure that at the time the recipient asks for his money, he will receive it without any issues at all. Also, it will help you avoid any unpleasant situations or deal with them effectively should they arise. The simplest way when making an efficient transaction is to get the things right regarding how to fill out a money order.
Tips to Follow When Filling Your Money Order
1. Use a pen when filling it. Preferably a black ink pen. Again, blue is acceptable also. Other colors are not recommended. A pencil or anything that can be easily erased should be avoided at all costs as that is the wrong way on how to fill out a money order.
2. Step 2 is the most important step and should be done immediately after purchasing your money order. It does not matter if you know all the other steps in regards to how to fill out a money order if you forget to fill the “pay to” line first and foremost. If it is blank, any person can easily cash it in.
3. If the money order is for a very large sum, be careful. If necessary and possible, contact the police to accompany you to the place where you will be buying it from.
4. If you are paying for a product or a service with a money order, make sure you ask the company how they will like their name written in the money order. They may not accept orders that don’t have their exact legal name since they need exact information for their accounting and tax purposes.
Additional Questions Related to “How to Fill Out a Money Order”
1. What happens if a money order has no signature line?
Not all money orders need to be signed. Some of them have the purchaser’s name printed on them and don’t require a signature.
2. What if a Minor spelling mistake was made when filling out a money order?
Usually, minor mistakes should be no concern to the institution handing the money to the recipient.
3. Is there an age limit to cash in a money order?
No there isn’t. Any person regardless of age can cash in a money order in America.