by Bob Schmidt

Created on: August 06, 2009

There are many options when it comes to buying a money order. Local grocery stores, convenience stores, check cashing/payment businesses, banks, and the Post Office all have money orders available. Each potential sales agent for money order services has advantages, and disadvantages.

Regular money orders are competitively priced, and convenience may be the determining factor for many who seek them. Expect to pay between 79 cents to a couple of dollars for a money order depending upon the amount required. Several important points to remember about money orders should be noted:

a) Upon purchase, you must correctly fill out the required information; the recipient and their address, and make notation of the account number to which the money should be applied. Otherwise, they may receive the money but not know where to apply the payment.

b) You must keep your copy of the money order for proof of payment should it be lost, or incorrectly posted to the wrong account. That little receipt is the only evidence that the bill has been paid.

c) After carefully filling out the money order with the needed information, it still must be mailed or delivered to the person or business intended to receive it. Don't forget to send the money order because you lack a stamped envelope.

There are several reasons why you may want to select a United States Postal Money Order instead of one from other sources. It is more universally accepted because every company trusts the integrity of postal money orders. In addition, US postal money orders may be cashed at the service window of any United States Post Office. Individuals to whom money orders are sent can easily get their funds without having to use a bank for cashing services.

Money orders such as found in many grocery and convenience stores are often written on regionally known providers. If you live on the East coast, recipients on the West coast may have to process the received money order just as any common personal check is processed. In other words, the funds may not be instantly available until the money order has cleared. That can be a big reason to select postal money orders.

Western Union also provides money order services, and can send money anywhere the same day as ordered. The big drawback is cost, a fee of $12. to $15. is common. If you need immediate funds transferred, this may be the way to go. One advantage is that you don't have to mail Western Union funds because that is part of what you are paying for.

One alternative that exists today is the use of electronic bill paying with bank debit or credit cards. This can be done via telephone, or the Internet. Anyone who has normal banking services should consider the ease of paying bills electronically because it accomplishes the same thing as a money order. Funds are credited instantly, and receipts need not be filed away.

Regardless of where a money order is purchased, always remember to note your account numbers carefully on the face of the money order. This is probably the most common error made by people who use this type of service. Aside from that, don't forget to mail it!

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