A money order is usually issued by governments and financial institutions like banks. Money orders come in the form of certificates backed by cash. The history writes that money orders were first issued by American Express in 1882. Later, these money orders were popularized as traveler’s check.
These money orders can be found at post offices, grocery stores and gas stations to make it easy for customers to cash. There are international money orders systems as well which are inexpensive and easy to send money across the border. It is also important to be aware of the risks related to money orders. It is better not to accept any money order from people who are unknown.
How does it work?
First of all, a buyer buys a money order and fills out the name of the receiver. The receiver’s information is filled on a form with the amount that is needed to be sent. The number of orders purchased depends on the amount of money you want to send. Also, it is important to fill the form carefully.
The authorized body that issues the money order to payer will have the sender’s name, issuer’s name, and the amount of money that needs to be cashed. This value of money does not include any charged fee. Normally, a bank or a credit union charges issue money orders.