A money order is a printed document that can be used for payments; they resemble checks, but they are totally different. You will get a money order by prepaying for the total amount of money that will be printed on your money order. Once this is done, you will have to fill in some vital information. After using the money order a few times, you will find the process to be relatively easy. In this article, we shall be focusing on how to deposit a money order.
Depositing a money order
Whenever you receive a money order, you will need to deposit or cash it in your bank account. Until you do this, your money order will remain to be a piece of paper. There are various places where you can deposit your money order, including convenience stores and banks.
Logistically, depositing a money order is just the same as depositing a check. All you need to do is to endorse your money order and list it different from a check on the deposit slip.
It would be best if you always take caution when depositing your money order when using a mobile phone. Often banks might request delivery for the original money order to your bank for further processing. Most banks don’t allow depositing your money order via mobile money deposits. It is advisable to verify with your bank before using a mobile phone to deposit your money order.
Can you deposit money order directly into a banking account online?
In order to deposit the money order into a banking account online, you will have to use your online bank’s name and address. Once you have filled all the necessary details on your money order, you should mail it to your bank. However, some banks have mobile banking apps that you might consider using on your smartphone and take a photo both the back and front of your money order and deposit via the app.
You should note that bank policies on money order differ from one institution to the other. Some banks discourage depositing money orders remotely; however, you will have to mail them. It is best if you check with your bank if they accept online banking in advance and check whether it also applies for a money order deposit. While doing this, you should always keep the money order receipt with you until your bank confirms the deposit was a success.
Uses of money order
• Sending secure payment via mail. In case you want to make a secure payment via mail, then money orders are considered to be the safest method. For obvious reasons, it is very unwise to send cash via mail. A check can as well be a great option; however, you might have trust in the payment recipient with the bank account number. At this moment, money, the order becomes the best method of alleviating the risk.
• Purchasing goods. Some sellers will request a money order in order to get rid of checks that often bounce. Money orders make transactions safe and sufficient.
• Paying bills without a bank account. Money order usually requires upfront payment. Whether you don’t have a bank account or you consider money order as a safe method of transferring money.
• Making large purchases without the need to carry a large amount of cash with you. When purchasing expensive goods from an individual, it is best to use a money order rather than cash. This will prevent you from walking around with large sums of money. It is for this reason that money orders are often used when purchasing cars from individuals via websites such as craigslist.
How to use a money order
When purchasing a money order, you will have to pay for a full amount upfront, along with a small fee. Once you verify that the amount is correct, you will have to fill in your credentials, name, and your contact information on the front of your money order. Furthermore, you will have to fill in the recipient’s name and contact information as well.
There is a memo line that permits you to specify the purpose of the money order and then sign at the front. You should always keep the receipt with you in case you need to prove the payment or keep track of the order.
Final verdict
Money orders are essential when you do not feel like using cash or check in making payment. If you are looking for the safest method of sending money, purchasing expensive goods, among other transactions, a money order will be best for you.