by Leigh Goessl

Created on: August 06, 2009   Last Updated: March 17, 2010

Money orders are popular alternatives to making a payment by a check. Many people often opt to use a money order to pay bills or send cash to someone because it is a quick and convenient method to send funds.

Why are money orders sometimes more preferable than checks?

Money orders are relatively straightforward, don't expire and also eliminate the need for ensuring enough funds are in a checking account to cover the amount sent since they are paid for upfront before the money is sent.

Once purchased, the money is always covered and there are no worries over a bounced check if someone holds onto the document for a long period of time. This is also a good convenience for people who don't use checking accounts.

Another reason money orders are so popular is because sometimes a vendor won't take a personal check and money orders are inexpensive alternatives to purchasing certified checks.

There are many places you can go to purchase a money order in the U.S. One of the most popular locations to buy money orders is at the United States Postal Service (USPS). At the USPS the money order prices are typically lower than some private companies will charge.

The amount you pay will vary according to how large the money order you're purchasing will be and where the money order will be cashed. For instance, according to 2009 rates, domestic U.S. money orders will cost $1.10 for amounts purchased from $.01 to $500. Money orders purchased for $500.01 to $1,000 will be charged a fee of $1.50 for the money order.

Money orders purchased at the USPS with the intent of being cashed in another country are a little more expensive to buy; the international money orders cost $3.85 and can be purchased for amounts up to $700. The biggest disadvantage to USPS money orders is you cannot send funds electronically.

Western Union is another place you can buy a money order. You can either order from Western Union directly or purchase at supermarkets, convenient stores or individual merchants that sell Western Union money orders. If a private merchandiser sells Western Union money orders, you can identify them by looking for the black and yellow Western Union logo typically displayed in their stores.

Money orders purchased through Western Union are more costly than USPS. The rates charged are dependent on how much the money order is made out for and the location the money order is being sent to. However, an advantage to using Western Union is the funds can be sent electronically for you, which

• 1
• 2
• Next Page >>