2/22/2023
In an increasingly digitized world, conventional payment methods can be seen as a mechanism against today's multiple threats. The money order falls into this category and we would like to show you how useful it can be.
What is a money order?
Simply put, a money order represents a prepaid check. Let's suppose you are going to make an important purchase for $700. To do so, you go to a store or institution that sells money orders, such as a post office or pharmacy, and purchase one of these notes for that amount.
The check in question will have your personal information, the corresponding amount and the recipient's information. Once you give the money order to the store, you can receive the product you purchased. Those in charge of the business will have to go to the bank to deposit or cash the money order.
This procedure aims to make the exchange more secure and gives the seller of the merchandise to understand that you do have the money to pay. You just have to make sure you buy the money order in advance, with cash or debit card.
If you use a credit card, it may not be accepted or you may be charged an additional fee for receiving the check.
Reasons to use a money order
In principle, the money order allows you to send or receive large amounts more securely and without any bank charges. But the most important thing is the fact that it protects your personal data by not including your account or routing number. This makes it more difficult for someone to try to steal your financial information.
In this way, you are using a method that makes identity theft more complicated. In addition, money orders include a tracking number and receipt as additional security measures.
With the receipt, you have written proof that the transaction happened. With the tracking, you know where it is and if it arrived at its destination.
When you should use a money order
There are several instances in which a money order can help you pay without major worries:
Paying off debts
Oddly enough, money orders can be a very effective method when you owe a lot of money and are dealing with disreputable collection agencies. If you send a check, collectors can take your financial information to access your bank account. This can also happen if you use your debit card.
There are always cases where they tell you they are only going to take $100 and end up taking the money you have earmarked for the kids, mortgage or even basic utilities.
Since they don't listen and don't care about you, they just want the money. To top it off, the banks let this happen and incidentally charge you for overdrafts or low balances after the bill collectors have emptied your account.
Since banks contribute to your problems, it's best to opt for a money order in this situation. That way you are paying what you really can afford and not a figure they want to bully you with.
The bottom line is that you are still paying what you owe and, at the same time, protecting your information from unscrupulous debt collectors.
Sending money to others
Although today there are a number of platforms for sending or receiving money online, sending funds in a more conventional way can still be justified.
We know that sending a check or cash by mail is a dangerous thing to do because it can be stolen or the package can be damaged/stolen. This risk increases when sending something to another country because of the additional time and processing.
When you use a money order, you have a tracking number to know the location of the shipment and when the recipient receives the package.
On the other hand, only the person whose name appears on the money order can cash it. So, if someone were to steal it, they would have no way of getting the funds.
Buying something of a certain cost
The idea is not to use the money order to buy something for $10. The idea is to use it for major purchases, such as a car, collectibles or expensive electronics from a business or private seller.
This gives you the certainty that they won't use your information if you buy online or that someone you know is trying to be clever.
Selling to a private buyer
When you are the seller, it is important to know that the buyer has the money to get what you are offering. The last thing you want is to get a bad check and get ripped off.
One way to avoid a scam is to ask the interested party to use a money order for an expensive product. Since it is a prepaid check, there will be no problem depositing or cashing it.
Where to get a money order in the United States?
A money order can be issued in several places, but most commonly at a United States Postal Service (USPS) office where they allow up to $1,000 to be issued on a money order.
You also have the option of requesting a money order at a bank, such as Citizens Bank, which offers information on its website, although it refers you to one of its offices to issue a money order.
Español: ¿Qué es una money order o giro postal y cómo funciona?