If you need to pay someone but don’t want to use cash, a personal check, or a credit card, a money order can be a smart option. It’s a prepaid paper payment that works a lot like a check but it’s generally considered safer.
Many people use money orders to pay rent, send money through the mail, or pay bills when the company doesn’t accept personal checks.
Let’s walk through exactly how money orders work and how to fill one out correctly.
What Is a Money Order?
A money order is a prepaid payment document. When you buy one, you pay the full amount upfront. The company that issues it then guarantees the payment.
Because it’s prepaid:
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It won’t bounce like a personal check.
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It doesn’t reveal your bank account number.
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It can only be cashed by the person you name on it.
For example, if you’re mailing $600 for an apartment security deposit and don’t want to send cash, a money order is a safer choice.
Where to Buy a Money Order
You can purchase a money order at:
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The United States Postal Service (USPS)
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Western Union
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Walmart
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Most banks and credit unions
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Some grocery stores and pharmacies
Fees are usually small often between $1 and $5 depending on where you buy it and the amount.
Important: Most domestic money orders are limited to $1,000 each. If you need to send more, you may have to buy multiple money orders.
What You Need Before Filling It Out
Before you start writing on the money order, make sure you have:
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The full name of the person or business you’re paying
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The exact payment amount (you choose this when purchasing)
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The recipient’s account number (if you’re paying a bill)
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Your address (if required)
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A valid payment method to buy it (usually cash or debit card)
How to Fill Out a Money Order Correctly
Although formats vary slightly depending on where you buy it, the process is very similar everywhere.
1. Write the Payee’s Name
Look for a line that says:
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“Pay to the Order Of”
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“Pay To”
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“Payee”
Write the full legal name of the person or business receiving the money.
Example:
If you’re paying your landlord, write:
John Smith
(not just “John”)
Never leave this line blank. If you do, anyone could potentially cash it if it’s lost.
2. Add Your Information
Most money orders include a section for:
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Your name
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Your mailing address
This allows the recipient to contact you if there’s an issue.
If you’re paying a utility bill, the company may require your address to match their records.
3. Fill in the Memo or Account Number
There’s usually a line labeled:
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“Memo”
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“Re:”
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“Payment For”
Use this space to write helpful details, such as:
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Your account number
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Invoice number
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Phone number
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What the payment is for
Example:
If you’re paying an electric bill, write:
Account #458921 – March Bill
This helps the company apply your payment correctly.
4. Sign the Front
Look for a section labeled:
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“Purchaser”
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“Signature”
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“Drawer”
Sign your name there.
Do not sign the back that’s where the recipient signs when cashing or depositing it.
5. Keep Your Receipt
When you buy a money order, you’ll receive a receipt or detachable stub. Keep it.
You’ll need it if:
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The money order gets lost
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You want to track it
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You need to cancel it
Without the receipt, canceling can be difficult and slower.
Why People Use Money Orders
Money orders still make sense in certain situations.
For Buyers
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Safer than mailing cash
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No bank account number exposed
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Guaranteed payment
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Accepted by many landlords and government agencies
For Sellers
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Cannot bounce like a personal check
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Funds are prepaid
For example, if you’re selling a used laptop online and don’t know the buyer well, a money order can feel more secure than accepting a check.
Downsides of Money Orders
While useful, money orders aren’t perfect.
1. Fees Add Up
You pay a fee every time you buy one.
2. Slower Than Digital Payments
Apps like Zelle and Venmo let you send money instantly often for free.
3. Purchase Limits
Most are capped at $1,000. Large payments may require multiple money orders.
4. Scam Risk
Fake money orders are common in online scams.
If you receive one, wait until your bank fully clears it before spending the money.
Can You Cancel a Money Order?
Yes but you’ll need:
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Your receipt
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The serial number
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A cancellation form
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A fee
Contact the company that issued it and follow their instructions. You can usually request either:
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A replacement money order
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A refund
Processing times vary.
