How To Fill Out a Money Order: Step-by-Step Guide

Money orders are a secure and convenient way to make payments, especially if you don’t want to open a bank account or prefer not to use checks or cash. They are widely accepted and can be purchased from various locations, including post offices, banks and retail stores. If you’re new to using money orders, don’t worry — filling one out is a straightforward process.

How To Fill Out a Money Order in 5 Steps

They may vary slightly in appearance depending on where you purchase them, but most money orders have the same basic sections. You can use the following steps if you need to know how to fill out a money order from Western Union, the post office or any other issuer.

Step 1: Fill In the Recipient’s Name

Fill in the recipient’s name in the “pay to” or “pay to the order of” section as soon as you get the order. If it’s left blank and then lost or stolen, the wrong person may fill their own name in the recipient field and cash it.

Some money orders also have a line for an address. But, what address do you put on a money order? It depends on the money order. Some money orders have a line for the address of the recipient or purchaser, whereas some have a line for both addresses. Just be sure to check which person the address corresponds to.

Step 2: Write Your Name and Address

Fill in your name and, if there’s a line for it, your address in the purchaser’s section. The section for your information could be labeled “purchaser,” “from,” “sender” or “remitter.”

You may think this information is unnecessary. However, if you’re paying a bill, you want to ensure the biller has enough information to credit the payment to your account or to contact you if there is a problem.

Step 3: Include Any Additional Information

Besides your name and address, there may be a few other pieces of information you need to consider. Some money orders have a memo line like checks do, so you can include a note or your bank account number if you’re paying a bill. Once again, provide enough information to ensure that the biller has no questions regarding which account to credit.

Step 4: Sign Your Name

If required, sign the front of the money order. The line will say “purchaser’s signature” or something similar.

The back of the money order is saved for the recipient. That is where they will sign to confirm its receipt just as if they were cashing a check. You might sign the back of a money order only if you’re making one out to yourself. In that case, check with your bank before depositing it via mobile deposit — not all banks allow it.

Step 5: Keep the Receipt for Your Records

Once completed, you can detach the receipt from the money order, and keep it in a safe place in case you need to get a refund for it. This is good to have in case you fill it out incorrectly or there are other issues with the transaction.

If you alter it in any way to fix it, your recipient may not be able to cash it. However, if you have the receipt, you can get a replacement money order. You’ll also need the receipt to replace a lost or stolen one.

If you don’t have the receipt, you can request a refund from most issuers. Keep in mind, receiving a refund can take as long as 60 days. If the money order is cashed during that time, you may have to show proof of fraud to get your money back.

Key Points To Know About Money Orders

A money order is a safe and secure form of payment that acts as a great alternative to a personal check or credit card transaction. Here are a few key points to keep in mind:

• You may need to know how to fill out a money order if you’re planning to make cash deposits when renting an apartment, send money to family outside of the United States or otherwise keep your banking information private during a purchase.

• The maximum money order amount varies by issuer. For example, the biggest money order you can get at the post office is $1,000. However, some issues may have a lower cap.

• To protect against fraud, financial institutions or check-cashing places may not cash a money order missing essential information, like the recipient’s name or the purchaser’s signature.

• If you’re paying a bill, the biller may not accept an incomplete money order either. Be sure to complete all fields to prevent problems or delays.

Where To Buy a Money Order

You can buy money orders at many locations, including:

• Your bank or credit union

• The post office

• Western Union and MoneyGram locations

• Convenience stores, grocery stores, big-box stores and drug stores offering Western Union or MoneyGram services

Alternatives To Using a Money Order

Money orders aren’t always the best solution. For example, they’re not great for large purchases since they’re limited to $1,000 or less. Also, the fees add up when you frequently use money orders.

If using a money order isn’t the right option for you, consider these options for sending money:

• Cashier’s checks: They are available from your bank or credit union, sometimes for a fee.

• Zelle: This is an app used by many banks that allows you to send money from your bank account to someone else’s, often without a fee.

• PayPal: This payment platform you can use to send money to family or friends.

• Venmo: This app-based service has social features and makes it easy to send money to people you know.

• Online bill pay: This free service is often available through the online banking platforms of banks or credit unions.

Final Take To GO

Because of the many ways you can send money without using a checking account or savings account, you might not have much need for money orders. But, for those times you need to use one for payment, you’ll want to know how to fill out a money order correctly to ensure the recipient can cash it. Always keep your receipt in case you need to request a replacement or refund.

FAQ

Here are the answers to some of the most frequently asked questions regarding money orders.

• How do you properly fill out a money order?

  • Here are the steps to take to fill out a money order:

    • Step 1: Fill in the recipient's name

    • Step 2: Write your name and address

    • Step 3: Include any additional information

    • Step 4: Sign your name

    • Step 5: Keep the receipt for your records

• Whose address goes on a money order?

  • The address you write depends on the money order. Some have an address line for the recipient or purchaser, whereas some have a line for both addresses. Just be sure to check which person the address corresponds to.

• Does a money order have to be signed by the purchaser?

  • Yes, typically it is required for the purchaser to sign the front of the money order. The line will say "purchaser's signature" or something similar. The back of the order is reserved for the recipient's signature.

Daria Uhlig, Caitlyn Moorhead and Sean Dennison contributed to the reporting for this article.

This article originally appeared on GOBankingRates.com: How To Fill Out a Money Order: Step-by-Step Guide