Last updated Mar. 7, 2023 by Jessica Green
Gift Cards can be used for a variety of things. They enable you to make purchases at gas stations, retail sites, restaurants, and many other locations.
Although gift cards can be used in various locations and situations, there are limits to what they can be used to acquire.
This article explores everything about a money order, places that accept the purchase of money orders with a gift card, how a money order works, and how to get a money order.
What is a Money Order?
Money Orders is a payment method that enables you to make payments for a transaction. It is similar to checks; however, it is a better and more secure payment method than checks.
Can I Buy Money Order With Gift Cards?
Yes, you can buy a Money order with a gift card.
Most businesses do not allow their clients to purchase money orders with gift cards. The few companies that allow for the purchase of money orders with gift cards often limit the number of money orders to be purchased.
MasterCard gift cards, pin-based, and pre-paid visas are the types of gift cards accepted for purchasing money orders.
Some locations that enable you to exchange gift cards for Money Orders include Walmart, USPS, NetSpend, Green Dot, Western Union, and more.
Why Do People Use Money Order
People make use of money orders for various reasons. For example, for people who don’t own a bank account, money orders become a secure and reliable way to send money and make transactions with business associates.
With a money order, anyone can receive and make huge transfers without the hassle of bank fees.
People also prefer the use of money orders due to the high level of security associated with it. In addition, money orders protect the information of the person making the transaction – this makes it great for people who want to remain anonymous.
When you use a money order, you will be provided with a receipt acknowledging you as the person behind the money order. This receipt must be kept in a safe place.
Facts About Money Orders
Here are some things you need to know about money orders.
Money Orders are pre-paid. Hence, they can’t bounce like checks when you attempt to cash them. Therefore, unlike personal checks, Money Orders are more secure and preferable.
Since money orders do not include the personal or financial information of the sender, it’s a great way to keep your transactions private. Checks, on the other hand, contain the personal information of an issuer and recipient. However, money orders don’t.
How Does A Money Order Work?
Since a money order can be issued by post offices, banks, grocery stores, and a few organizations, customers can easily access it.
Once you purchase a money order, a document will be given to you. Fill out the documents with the recipient’s name amount to be received by the recipient. The information needed includes:
- The payee’s name
- The payees’ address
- Reason for making transfers
Most money orders come with an amount limit. For example, money orders purchased from the post office allow for up to $1000 transactions per money order. Therefore, you’ll be required to buy multiple money orders if your transaction exceeds $1000.
Any organization that issues a money order also provides a receipt containing the money order’s serial number. This receipt should be kept safe until the recipient confirms the transaction.
How To Get A Money Order
There are multiple ways to get a money order. Some of which include:
Bank: If you own a bank account, you can visit your bank and request a money order. Most banks give out free money orders, while the rest charge a small fee.
- Local Businesses: Places like Walmart, drugstores, and grocery stores issue money orders for a small fee. However, the money orders issued in these places have a transfer limit.
- Online Purchase: There are several sites that issue online money orders. However, the charges are way higher than the physical money orders.
- Postal Office: This is one of the best places to get a money order. One benefit of getting a postal service money order is that it can be replaced when damaged, lost, or stolen. In addition, the money orders issued by the United States postal office can be purchased with a debit card and is cashable in over 20 countries.
Other places to get a money order include credit unions, western union, and more.
How Do You Fill Out A Money Order
Here’s a step-by-step guide on how to fill out a money order:
- Write down the payee’s name in the “pay to the order of’ or “pay to” column. In this section, you write down the name of the business or person receiving the money.
- Fill out your personal information, such as your name and address, in the required section. You can also fill out the address of the recipient.
- Fill out the transaction information. Every money order comes with a memo line that requires you to fill in the nature of the transaction.
- Sign your name in the blank designated to the purchaser’s signature.
- Keep the receipt in a safe place. This receipt will be required in the case of damaged, stolen, or lost money orders.
Read Also: How To Fill Out A Check (Step-by-step Guide)
What Is the Cost of Making a Money Order?
The cost of making a money order depends on the organization you visit. However, most organizations charge $1.50 or less for money orders below $500.
Some organizations do not charge based on the amount of money orders you want to make. Instead, they usually charge a flat price regardless of the number of orders you require. In addition, there are some organizations that charge a proportion of the value of the money order you wish to purchase.
The money order of a specific denomination can be subject to additional fees in some states and organizations.
Most banks also provide money orders for free, while some banks charge small fees.
Conclusion
A money order is one of the most reliable ways to send and receive money. They guarantee a high level of security and also provide anonymity to the sender. With this article, you can begin your journey of using money orders.
