Money Order

A money order is an imbursement order for a pre-specified amount of money. It is a more trusted method of payment than a personal check, because it is required that the funds be prepaid for the amount shown on it. Merchants may welcome the extra sanctuary of a pre-paid money order instead of a personal check, which can bounce.

A money order is purchased for the amount desired. In this way it is analogous to a certified check. The main difference is that money orders are usually limited in maximum face value to some specified figure while certified checks are not. Money orders classically consist of two portions: the flexible check for allowance to if the person can relate to the matter made creditor, and a receipt that the customer retains for his/her records. The amount is printed by machine or checkwriter on both portions, and similar certification, either as a third hard copy or in electronic form, is retained at the issuer and agent locations.

Money orders were formerly issued by the US Postal Service as an unconventional to sending cash through the postal system for those who did not have checking accounts. They were later offered by many more vendors than just the postal service as a means to pay bills and send money globally where there were not consistent banking or postal systems.