Similarities between Bank draft and Money order
#Money order serial#
The purchase is then issued a receipt that includes the serial order. Money orders however has a $1,000 maximum limit hence a person would need to purchase several money orders for amounts that exceed this limit. The buyer must include the name of the recipient as well as the amount they should receive. People should hence be cautious when receiving them from people they do not know. Although they are inexpensive, they can be fraudulent. For anyone with cash, money orders are easy to acquire as they are sold at gas stations, post offices and grocery stores. They are often used by people without access to a standard checking account and are readily accepted and converted to cash. Contact your bank to increase your daily limit, and then you may transfer funds over for free, unlike money orders.Īustralia Post can help you understand the process.Issued by a banking institution or government, this is a certificate that guarantees the payee of payment on demand. You may also want to consider a digital transfer. However, bank and cashier’s cheques must be purchased from a bank or credit union. Those options function similarly to money orders. The most common alternatives are cashier’s cheques or bank cheques. Although that fee is usually under $5, it’s best to always keep that in mind so you’re not surprised when purchasing one. Therefore, if you need to make a payment bigger than that, you will need to purchase multiple.Īs mentioned before, they cost a small fee. There are a few disadvantages that you need to consider. The best thing about money orders is that you can send them without having a bank account! Your recipient doesn’t need a bank account either. That guarantees the payee that it will not bounce. When getting one, you will need to pay upfront.
That’s when money order is your best option. Some payments are too large, that cash just isn’t an option. All you’ll need is a tracking number or money order number that would be written on the front. Receipts also allow you to track the money order and see when it gets deposited. Keeping the receipt provides you with proof of purchase in the event the money order is stolen or lost and you need a refund. Just like everyday purchases, it’s best to keep receipts. Make sure you only sign the front as the back is for the recipient’s signature. The line may say “ Purchaser’s signature”. The last line on the money order is for the payer’s signature. Step 4: Sign the front of the money order This allows payees to know which account to credit in the event you’re paying a bill. Money orders usually require the payer to fill in their account number. Having your address written on it allows the recipient to contact you to verify it. Other words written instead of “purchaser” could include: “From”, “Sender”, or “Drawer”. If you are the purchaser, you should still write your mailing address.
You can’t make any changes to money orders, therefore, make sure you write all the information.Īfter filling in the recipient’s name, you’ll find a “purchaser” line where you’ll have to write your address. The line that says it usually has “Pay to” or “Pay to the order of” written there. You just need to fill out the name of the payee (whether it’s a person or company).
#Money order how to#
Let’s thoroughly go through the steps on how to fill them out. Simple! Right? Make sure to read more about cheques and how to use them! Money orders are similar to regular cheques, and to fill them out you will need to: You can purchase money orders from certain banks, post offices, or even exchange agencies. Only certain places such as Australian Post Offices sell them and they cost under $5. Similar to a personal cheque, money orders are printed certificates with a certain amount. They’re affordable and can be filled out in four simple steps. You don’t need a bank account to fill out a money order.
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