Money order

(redirected from Money orders)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
Related to Money orders: bank drafts

Money order

A financial instrument backed by a deposit at a certain firm such as a bank that can be easily converted into cash.

Money Order

A certificate entitling the payee (and sometimes simply the holder) to the stated amount of cash immediately upon receipt by the appropriate organization. For example, one may send a money order through the U.S. Postal Service; when the payee receives the money order he/she can present it to the Post Office and receive the requisite cash. The money order is considered secure because the issuing body must receive cash in advance of providing the money order. Some companies prefer money orders to checks because money orders do not bounce. However, their relative anonymity can be used for money laundering and other illegal purposes. As a result, banks and other organizations issuing money orders often place a limit on how much can be sent, and brokerages do not generally accept them for payment. An issuer charges a fee in exchange for writing a money order. See also: Certified check, Western Union.

Money order.

A money order entitles the person named as payee on the order to receive the specific amount of cash shown on the order.

You can use money orders in place of checks if you don't have a checking account or if the payee requires a guaranteed form of payment. You can purchase money orders at banks, post office branches, credit unions, and other financial institutions.

You can use money orders to send money internationally as well as within the United States. The United States Postal Service (USPS) has agreements with 30 countries that allow recipients to cash USPS money orders in post offices in those countries.

Sellers sometimes impose a limit on the size of the money orders they sell, and they typically charge a fee for each order. However, those fees are less than for guaranteed bank checks. One drawback of a money order is that you have no proof that payment was received.

References in periodicals archive ?
Sims received a call from a postal inspector who said he had determined the money orders to be counterfeit.
MANILA -- The Bureau of Customs (BOC) seized a mail parcel from Africa declared as "letters and cards" but contained United States postal money order vouchers amounting to about P28 million following a tipoff from French authorities.
The most common way a money order goes missing is by rental drop box theft, with the use of any type of equipment that usually includes some type of wire with a sticky substance placed at the end.
Add in costs for money orders and bill payments--the other service a checking account provides--and a whopping 17 percent of the unbanked spend more than $100 a year on financial services.
For one, Bird had to try and track down more than 2,000 retail agents that were selling NWFX's money orders.
The nephew alternatively asserted that the acceptance of the three money orders either established a landlord-tenant relationship or created a waiver by the owner.
They use money orders to pay their rent and utility bills and to send money to loved ones.
Cashiers checks are close substitutes for money orders, so the reported data cover the proportion of banks and savings associations offering either of these instruments rather than the proportion offering each.
After the suspects received the cash, they listed daily breakdowns that showed, through a series of deductions, how specific amounts were used to purchase money orders at area financial institutions.
Checks, money orders and American Express are accepted.
To illustrate how the law is applied, a local convenience store is subject to the CTR reporting requirement if someone obtains money orders at the store in exchange for $10,001 in cash.