With the explosion of electronic payments through online banking and credit and debit cards, money orders became an almost forgotten payment method. That’s despite the very fact that they’re still commonly employed by many people. If you’ve never used a postal order, otherwise you don’t know why you would possibly, it’s an option you'll want to explore. There are certain times when a postal order is often the well-liked method of payment.
Why Get a Money Order?
Money orders are most precious in two situations.You Don’t Have a checking account
The first is that you don’t have a checking account. Consistent with the FDIC, 8.4 million households, or about 6.5% of all households within the country, haven't any bank relationship. These households are mentioned as “unbanked.” An even more significant number of households – 24.2 million, or 18.7% of all households – are considered “under-banked.” These are people that have a checking account but make extensive use of non-bank financial services. They don’t provide a definition of what quiet bank relationship the under-banked have, but we will guess it's going to be people that have a bank account, but not a bank account. Collectively, the un-banked and under-banked represent about 25% of all households. Since it’s likely that the majority within the group don’t have a bank account, money orders are a convenient substitute for checks and electronic payments.Risk of exposing Personal Information
The second situation is where you would like to form a payment, but you don’t want to risk disclosing any personal information. For example, once you write a check, your personal information is dangerous. The check includes not only your name but also the name of your bank, the bank routing number, and your personal account number. That’s all a possible thief would wish to steal your identity. And while credit cards are safer thanks to making a payment, they also carry the danger of fraud. It opens the likelihood that your name and MasterCard account number could fall into the incorrect hands. But a postal order enables you to form payment in a legally acceptable way, without the necessity to disclose any personal information. Sometimes that’s just what you need!How Do Money Orders Work?
Money orders work much the equivalent way checks do. The biggest difference is that while a check is drawn on a checking account, a postal order is actually funded beforehand. But in most other respects, it works an identical way. You’ll make postal orders payable to a private or a corporation, who will then get to endorse the document for payment. From a recipient’s standpoint, a postal order has the advantage that it’s fully funded. That is, it’s nearly as good as cash. This is often unlike checks, which may bounce if the issuer’s checking account lacks sufficient funds. You can purchase money orders at tens of thousands of locations across the country. We’ll get into a number of the more common locations a touch bit afterward. Money orders can generally be purchased in amounts up to $1,000. If your payment amount is higher, you'll need quite one postal order. Fortunately, money orders are relatively cheap. They will cost as little as $1 to the maximum amount of $5, counting on where they’re purchased. As for payment, you’ll get to purchase a postal order using cash, a debit, or MasterCard. Checks aren't acceptable since the funds aren't guaranteed. But remember, if you employ a MasterCard to get a postal order, it will be treated as an advance. Most credit cards charge an advance fee, also as a better rate of interest on the quantity advanced. But before purchasing a postal order to form a payment, first, be sure the recipient will accept it. Not all merchants will accept money orders, particularly for online transactions.Redeeming a postal order
If you’re paid by postal order and you would like to redeem it, you'll generally roll in the hay at any location where money orders are often purchased. In nearly all cases, which will include your bank.Pros and Cons
Pros:- They’re a commonly accepted method of payment and sometimes preferred over checks.
- They’re usually less costly than bank-issued checks, like certified or cashier’s checks.
- Because you buy a postal order before it’s issued, there’s no chance it'll bounce. Which will provide higher assurance to you if you’re receiving a postal order, and to a celebration, you’re sending one too.
- They’re safer than carrying cash.
- If you don’t have a bank account, money orders are often sent through the mail. Cash cannot.
- Money orders aren't accepted everywhere.
- They’re much slower than online payments and thus not warmly welcomed by the bulk of merchants.
- They can’t be wont to make online purchases.
- Money orders are time-consuming. You’ll get to visit an outlet where you'll make a sale whenever you would like one.
- While money orders are generally safer than cash or checks, they're vulnerable to fraud.
- You’ll need to pay a fee for every postal order you buy. Most banks don’t charge a fee for either checks or online payments.
Best Places to urge a postal order Near Me
If you’ve never purchased a postal order in the past, you’ll be surprised at the thousands of places where they will be either bought or redeemed.Here are the major common sources:
The US Post Office
The US Post Office is one of the most significant familiar sources of cash orders. And since there’s probably a post office on the brink of home, they’re available to anyone. The fee maybe $1.25 for money orders up to $500 and $1.70 to $1,000. Domestic postal money orders are available in denominations up to $1,000. They will be purchased using cash, an open-end credit, or traveler’s checks, but not a Mastercard. The post office also allows you to send money orders internationally. However, the utmost amount of any single postal order is $700, and therefore the fee is $9.50. That work bent is about 13%, which is an upscale thanks to sending a payment.Your Own Bank or depository financial institution
Most banks and credit unions offer money orders. But you’ll get to have an account with a bank to get one. Terms vary by institution. For example, using JPMorgan Chase as an example – since it’s the most crucial bank within the country – they provide money orders in amounts up to $1,000 at a price of $5. DCU depository financial institution similarly offers money orders in denominations of $1,000 but at a price of $3 each. These are just samples of banks and credit unions. You’ll get to ask your own bank or depository financial institution to seek out what the value of cash orders purchased there'll be.Western Union
Western Union operates primarily through agent locations, which may be shops, convenience stores, and pharmacies. They need quite a half-million agent locations worldwide, in over 200 countries, but money orders are available at “only” 56,000 locations. Fees may vary by agent location, but you'll generally expect to pay $1.25 for a postal order up to $100 or $150 for one up to $1,000. This is often, but you'll pay at either banks or credit unions and even a couple of cents cheaper than the US Post Office.MoneyGram
MoneyGram is analogous to Western Union, and therein it works through agent locations. It’s pretty 340,000 agent locations, and they’re spread across 200 countries worldwide. Depending on the situation, MoneyGram could also be one of the smallest amounts of expensive ways to get a postal order. They charge a fee of just $0.70 to get a postal order of up to $1,000. You’ll find a MoneyGram location by making an inquiry on online or on your mobile device.Pharmacies
Two major pharmacy chains that provide money orders are CVS and Rite Aid. (Interestingly, Walgreen doesn't .) CVS has nearly 10,000 stores nationwide. They use MoneyGram money orders and charge a fee of $1.25 each, in amounts up to $500. make certain to see with the CVS location to form sure money orders are available. Rite Aid has quite 2,500 locations and offers money orders through Western Union. They’re available in denominations up to $500, at a price of $.099 each.7-Eleven Stores
7-Eleven may be a shop with nearly 8,000 locations across the country. Not all stores offer money orders, and therefore the terms may vary somewhat from one store to subsequent. You ought to even be aware that you cannot redeem a postal order at any location. The maximum postal order is $500, and it comes with a fee of $0.65, or up to three of the quantity of the cash order. (Ouch! that would mean $15 on a $500 postal order, so 7-Eleven shouldn’t be your first choice.)Walmart
It should come as no surprise that Walmart offers money orders – they need everything else! And with quite 4,700 locations across the country, there’s probably one in your town. And also, not surprisingly, Walmart has one among rock bottom prices on money orders you’ll find anywhere. They provide money orders through MoneyGram at the Walmart MoneyCenter. They will be purchased in denominations up to $1,000, with a fee of $0.70.Grocery Stores
Buying a postal order can also be no more complicated than getting to your favorite grocery. Many offer financial services at their customer service desks, which also make money orders available. For example, Kroger, one of the essential grocery chains in the country, offers money orders through their Money Services. They use Western Union money orders, which may be purchased in denominations up to $1,000. Fees vary by location, but they advertise it is often as low as $0.69 if you've got a Kroger Shopper’s Card. Safeway also offers money orders through Western Union. The utmost amount is $500, but the value is $0.59 each. Unfortunately, Safeway doesn’t redeem money orders. These are just samples of two of the essential grocery chains in the country. But if they’re offering money orders, there’s a superb chance your own grocery also does.Check Cashing Services
Since check-cashing services provide financial services for non-bank customers, many also offer money orders. Since this is often such a various group of providers, you’ll get to ask the actual check-cashing service you're employed with for availability and costs. Also, take care with fees. Since check-cashing services work mainly with the un-banked, the fees are likely to be above what you'll pay at any of the opposite sources on this list.Know Where to urge Money Orders once you Need One!
If you don’t have a banking relationship, you’re probably already well familiar with money orders, including where to urge them and where to pay rock bottom fees. But if you are doing have a banking relationship, money orders could also be less familiar to you. But albeit you've got a checking account and may make payments by check or online payments, there should be those situations where employing a postal order may be a more desirable option. If you would like to form payment to a merchant, you’re not conversant in, and you’re in the least concerned with protecting your identity, paying by postal order will provide that protection. Even if you don’t decide to use a postal order soon, it’s good to familiarize yourself with the practice. If you do, you’ll be ready when the day comes that paying by postal order is the more sensible choice.