A money order is a prepaid payment for a fixed dollar amount. You pay for it up front, so — like cash — it cannot bounce. Money orders are a reliable way to pay when you do not want to send cash or use a personal check.
Key features of a money order:
- Prepaid — you pay the full amount plus a small fee when you buy it.
- No bank account required — anyone can buy one.
- Widely available — banks, post offices, and many retailers sell them.
- Has a maximum — each money order is capped at a relatively low amount, so larger payments may need a cashier's check instead.
How to get and fill out a money order:
- Buy it for the amount you need, paying with cash or a debit card.
- Write the recipient's name in the "pay to" field.
- Fill in your name and address as the purchaser.
- Keep your receipt — it lets you track the money order or request a replacement if it is lost.
Cashier's check vs. money order: use a money order for smaller, everyday payments where convenience matters; use a cashier's check for large transactions where the recipient wants a bank-guaranteed instrument.