How To Fill Out a Money Order in 5 Steps

In the sections below, we’ll walk you through the five-step process for filling out a money order.

The steps to filling out a money order are:

1. Fill out the name of the recipient.
2. Write your address in the purchaser section.
3. Write your account or order number in the memo field.
4. Sign the money order.
5. Keep your receipt.

#1 Fill in the Name of the Recipient

When you first ask for a money order, the teller fills in the payment amount you’re requesting. You’ll then need to fill in the rest. One of the most important parts of the money order is the name of the person you’re sending the payment to. If this is wrong, that person can’t cash the money order.

In the “Pay to” or “Pay to the Order of” section, fill out the full name of the person or business the money is going to. Make sure you spell everything correctly.

#2 Write Your Address in the Purchaser Section

Right under the “Pay to” section is the purchaser’s address field. This refers to your mailing address. Fill this section out. If there’s a separate line for the recipient’s address, fill that out as well. Again, all information needs to be correct.

#3 Write Your Account or Order Number in the Memo Field

Toward the bottom of the money order, you may see a section labeled “Memo,” “Account Number” or “Payment for.” You won’t write your bank account number on the memo line, but rather your account number or order number associated with the business you’re paying.

For example, if you’re paying a utility bill, you’ll write your account number for that utility company. If you’re paying debt, you’ll write the account number associated with that creditor.

#4 Sign the Money Order

You’ll sign the front of the money order. This makes the money order official, allowing the recipient to cash it. You won’t sign the back, as that’s meant for the recipient.

#5 Keep Your Receipt

No matter where you get a money order, the teller or cashier will offer you a receipt. Always take this receipt, as it has your tracking number for the money order and gives you proof of purchase. If the money order is lost or stolen, the receipt helps you cancel it.

Financial institutions like Western Union and MoneyGram®, along with the U.S. Postal Service®, sell money orders for customers looking to send payments. With all of the cashless and mobile payment methods available, you may be wondering why and when using a money order would make sense.

Money orders help you pay people and businesses that don’t accept other methods of payment, such as credit cards and personal checks. This could be an individual you’re buying a car from in a private sale or a service provider such as a plumber or an electrician.

Money orders provide security that personal checks can’t. While your name is on a money order, your bank account information isn’t. This keeps your information safe if your money order gets lost or stolen. A money order is also more secure for the recipient since you provide the payment amount up front rather than having it drawn from your account later.

Most service desks at grocery, big-box and convenience stores such as Walmart and CVS sell money orders. The Postal Service, Western Union and MoneyGram do as well, along with banks and credit unions.

The maximum amount for a single money order is typically $1,000, but this varies by issuer. You also must account for a fee, which is often no more than a few dollars. The USPS charges $2 for money orders up to $500 and $2.90 for those between $500.01 and $1,000.

Issuers generally accept debit cards or cash to cover the amount of the money order and the fee. The post office also accepts traveler’s checks.

Money orders provide an easy and secure way to send money and pay for services. They aren’t the ideal solution for everyone, though. Here’s a look at the pros and cons of money orders:

Pros of a Money Order

Here are some of the benefits of using money orders.

• A safer alternative to checks: Personal checks have your name, account number and bank routing number on them, making them relatively insecure if you lose one or your checkbook gets stolen.
• Doesn’t require a bank account: Because you can pay for a money order with cash, you don’t need to belong to a bank or credit union to send one. And your recipient doesn’t need a bank account to cash the money order.
• Doesn’t expire: A money order generally doesn’t have an expiration date, so if the recipient forgets to cash it for a while, you won’t need to send a replacement. However, the issuer might eventually charge a service fee.
• Can easily be tracked: Your money order receipt has a tracking number you can use to check whether the order has been cashed.

Cons of a Money Order

While money orders are more secure than some other options for money transfers, they also have disadvantages:

• Slower payment: Unlike cash or a payment from your debit or credit card, a money order can take a few days to get to the recipient if you mail it.
• A more time-consuming process: To get a money order, you must go to an establishment that sells them and fill the form out. Many other payment methods don’t require you to do anything in person.
• Has a fee: While it’s often no more than a few dollars, there’s a fee to buy a money order.
• Low maximum amount: In general, the limit for one money order is $1,000. So if you wanted to make a larger purchase, you’d have to buy multiple money orders.

*Data accurate at time of publication

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.