It is safe to say that a money order is a secure way of transferring money to your friends and family. When there is a risk while using cash, or if they aren’t accepted for payment, you can prefer a money order. But can you use a debit card for money orders?
Yes, you can use a debit card or cash for a money order. You can easily make money orders through cash or debit cards at the post office, Walmart, Western Union, and your bank or credit union. You just need to fill out the money order form, pay with your debit card or cash, and you are done.
But keep in mind that when you use a debit card, there is a fee associated with it, and it also depends on the location you buy the money order. This blog will discuss each aspect you need to know about money orders!
What Is A Money Order?
A money order is similar to a prepaid check. It works like a check, so you can cash it or deposit it into a bank account, but surely it is safer. You can buy it with cash or other guaranteed funds and have to pay a fee for the service.
It is like a certificate issued by the post office through which the person can receive cash on demand whose name the money order is sent through the banking institution. With a money order, the recipient would know it’s already paid, so the money is guaranteed.
People generally use money orders as an alternative to cash or checks when looking for extra security, as it is a guaranteed payment.
How Does It Work?
A money order is a simple and alternative way of check. You will decide the specific person who will receive the money. There may be some fees while purchasing a money order. The recipient is already sure the money is prepaid, so it is safe and guaranteed.
If you’re the sender, you can buy it from various locations such as gas stations, grocery stores, Walmart, etc., and deliver it to the specific person through a service like mail. At the same time, the receiver can either cash or deposit it without the fear of it bouncing.
Checking the Status
In case the sender wants to find out if the money order has been cashed or delivered to the specific person, the sender needs to make some different moves as it needs to be linked to your bank account.
In order to get the real-time status, you need to provide your serial number and issued amount then you’ll be able to verify the status of the money order. The common ways to find this are United States Postal Service (USPS), MoneyGram, and Western Union.
How to Purchase a Money Order?
Typically it is better to purchase a money order with a debit card or cash than to buy it with a credit card. You need to make enough money to purchase a money order. You must fill out the required form as a precaution against money laundering.
You simply need to go to a place where you can easily get the money order, like a mall or grocery store. Pay enough through a debit card or cash to get a money order; you may get a receipt for your money order that will help you confirm your real-time status when you need it.
Location
It is easy to get your money order near your residence as you can easily make your money order at USPS, malls, Walmart, or any grocery stores nearby. You can even avail of it through MoneyGram outlets, supermarkets, pharmacies, and other grocery and convenience chains.
Cost
Considering domestic money orders, there is generally an additional cost for issuing a money order depending on where it’s purchased. There is a range of costs, up to around $5. However, the fees are usually between $1-$5.
Buying With A Debit/Credit Card
Buying a money order with a debit card over a credit card is always preferable. Generally, retailers and merchants consider debit cards to purchase a money order, and the issuer also wants the money in hand before the money order is issued.
It is better to prefer debit cards or cash than credit cards. Credit cards can be taken into consideration after pursuing all the options.
Cashing Out Your Money Order
The best way to cash your money order is the same place where it was issued, which can be a bank, credit union, Post Office, check-cashing store, or even some convenience.
You must look for the fees as It may contain a small fee while cashing a money order depending upon the location, which also has a solution by depositing the money order into a bank account. You can cash out your money order in simple steps:
- Bring the receipt or certificate of your money order over to the place where you want it to be cashed out
- Get your money order signed on the back for endorsement before handing it over to the cashier
- Verify your identity with your driver’s license, passport, or a government-issued ID card
- Pay the service fee, as it may cost you little to no fee
- Receive your cash from the service counter safely
After cashing out your money order, keep the receipt with you safe. In case of any discrepancy, this may be used as proof to claim your funds back. Cashing a money order is one of the simplest and safest ways to get cash quickly and securely. You can ensure that your money order is cashed out properly and safely with the right steps.
Functions of a Money Order
The money order works similarly to a check. Money orders are used without access to a standard checking account. It allows a payee to receive cash on demand and authorizes the person who purchased it to stop payment.
Traceability
Money orders are traceable in a way that you get a receipt when you make a money order which contains the essential details that can be helpful to trace your money order which usually includes the banking code, amount of money, and the date of purchase which will help you trace your order in case it gets lost or stolen.
Guaranteed
The recipient is guaranteed to receive the funds as the sum is already paid out of your bank account with the money order. It can be counted as a useful way for business deals. Unlike checks, you don’t have to worry about the receiver refusing to accept it or not having enough funds in their account for the check to clear.
So, the main functions of a money order are traceability, guaranteed payment, and providing an alternative form of payment for those without access to standard checking accounts. Money orders also provide anonymity and security as they do not require the sender and receiver to share their banking details.
Tracking Your Money Order
You can simply track your money order with your receipt by providing basic or required information regarding your money order to some website. You can track a money order by providing the following information.
- Money order serial number: It is a unique number printed on the money order receipt.
- Date of purchase: The date of the money order purchase should be provided for tracking your money order.
- Expected amount: The amount you purchased or sent with the money order must be provided for tracking purposes.
- Originator’s details: The sender’s name and address should be provided for tracking the money order.
By providing this information, you can easily track your money order online or at the post office where you purchased it. Money orders have a validity period of one year; if not cashed within that time frame, the money order will be void. If you need to check the status of your money order, you can contact the issuer for a refund, depending on the situation.
Lost/Mistakes On Your Money Order
Unfortunately, filling out a money order with the wrong information is not easily forgiven. The common mistakes that usually occur while filling a money order are:
- Mistakenly write the wrong spelling of a name
- Put the wrong address while filling
- Writing the wrong amount
If you’ve made any mistake while filling out a money order form, there is no option for correction of errors. You can not change the money order once you have completed the form.
Changing information on the completed money order will make the order ineligible for cashing. So, you can simply cancel the payment or refund it. The same goes for the situation in case you lost; you can easily replace or refund it by paying a non-refundable processing fee.
It depends on where you’ve bought a money order, as some institute allows you to make minor changes. If the changes are not permitted, you only have the option to cancel or refund the order, which may cost some additional fees.
Are Money Orders Safe?
Undoubtedly money order is the safer way to transfer money from a bank account and turned into cash in hand. Financial experts prefer it because it is more secure than writing a personal check. Money orders are safe because only the payee can cash or deposit it for the amount printed on its face.
A money order is a paper form of money, and it cannot bounce like a check. It is easy to track your payment through the receipt you get while buying a money order, which has some confidential information through which you can easily recover any funds if it’s lost, stolen, or damaged as long as you have the receipt.
However, it is essential to remember that there is still a risk associated with sending and receiving money orders, as they can be stolen and altered. To stay secure while using money orders, ensure the payee’s name is filled out on the money order, do not share your personal information when sending them, and keep a record of the purchase.
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Tips on How to Spot a Fake Money Order
Although money order is considered a secure method for money transfer, it also has some chance of being used fraudulently, so the issuer should be aware of it anyway. You have to make sure that the money order is fake.
You should probably sense some kind of fraud if you face any of the following changes:
- The money order looks suspicious or has written words or incorrect information
- The money order is not signed, or the signature appears to be forged
- The total amount of money on the money order is higher than you were asked for
- The serial numbers are suspicious or missing
- The paper quality looks inferior to what you’re used to seeing with legitimate money orders
Finally, taking extra precautions is wise if you feel the money order is too good to be true. Confirming and verifying with the issuing company is much safer before confirming any transaction. Check all money orders thoroughly and contact the issuing company to verify their authenticity.
FAQs
Can you Do a Money Order Online?
Yes, it is possible to do a money order online. Many banks now offer customers the ability to purchase money orders through their online banking systems. With these digital money orders, customers can easily send money quickly and securely. You can use them for online money orders, but they may contain some fees; you can also do this online without paying a fee with your debit card.
Can I Get a Money Order from Walmart using Apple Pay?
Currently, Walmart does not have the option to accept Apple Pay as a form of payment, either in-store or online. So, there is no surprise that mobile wallets like Apple Pay and other contactless methods like Venmo, Zelle, Google Pay, and Samsung Pay are becoming more popular daily. But still, the users are looking forward to getting their money order using Apple Pay soon.
Does Walmart Sell Western Union Money Orders?
Yes, there is a chance of getting western union money orders in Walmart as the Walmart Money Services Center began cashing Western Union money orders in 2021. Walmart also has an option for Western Union money transfer services.
How Can I Transfer Money from my Debit Card?
You can easily transfer money from your debit card through your bank website. Select the transfer option, add the amount you desire to proceed with, and follow the required, easy steps to do this.
Conclusion
A money order is a guaranteed form of payment that makes it a secure method. However, it may contain some fraudulent activities, but one can be safe while keeping all the major points in mind, which may lead to getting scammed.
Debit cards are a convenient and secure way to purchase money orders as long as the user is aware of the potential risks. To avoid fraud, keeping track of all transactions and being mindful when buying online is essential. By being informed and taking preventive measures, debit card users can safely purchase money orders with peace of mind!
