Money order

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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 ?
The USPS BSA System provides a way to double-check suspicious money orders to ferret out patterns that may indicate money-laundering activities.
The new money orders are supplied by Travelers Express Company, Inc.
NYSE: MNE) announced today that it has acquired all of the capital stock of Mid-America Money Order Company from Mid-America Bancorp for approximately $15 million cash pursuant to a purchase agreement reached last August.
Kroger stores will begin selling IPS' Western Union Money Orders as equipment is phased in throughout the year.
Collection agencies can use APS LINK with their Voicelink systems to receive immediate payments, rather than waiting for a check or money order to arrive in the mail," said Jack Praino, Digital Systems director of Corporate Marketing.
Sims presented the money orders to the clerk, and what happened next left him at a loss.
During inquiry it was established that money orders paid at different sub post offices were again charged in the Money Orders paid list of D.
Amscot Financial is a leading provider of convenient, consumer-oriented financial services, including check cashing, bill payment, money transfers, cash advances, prepaid cards and money orders through its wholly owned division, Amscot International Money Order Company.
Complete web-based tracking and monitoring system for disbursement of funds for BISP has been evolved that include continuous processing, monitoring and reconciliation of the specialized money orders scheme.
Thieves are able to "wash" money orders in a way that removes the apartment community's name, allowing them to use the funds for other purposes.
The international express money orders are accepted and paid up in the on-line regime at any post office department, which handles money orders.
Launched 130 years ago, in 1880, the original paper based system of money orders is still in vogue.