How to Fill Out a Money Order Step-by-Step

Money orders are a simple, secure way to send payments, especially if you don’t have a checking account. They are widely accepted, as they’re guaranteed by the issuer, reducing the risk of non-sufficient funds. The most common brands of money orders include Western Union, MoneyGram, and the U.S. Postal Service (USPS).

Here’s a step-by-step guide on when to use a money order, where to get one, and how to fill it out correctly.

Key Takeaways

Money orders are an easy, secure alternative to cash or personal checks, ideal for those without a checking account.
To ensure the payment is credited correctly, always include an account number or invoice number if paying a bill.
Refunds for canceled money orders can take up to 30 days or more.
You’ll need valid identification to purchase or cash a money order.
Once you fill in the recipient's name, the money order can only be cashed by the payee.

When to Use a Money Order

Money orders are ideal when you need to make a payment but can’t use cash, a personal check, or a smartphone app. Money orders are widely accepted because they are prepaid, eliminating the risk of non-sufficient funds or bounced payments.

Money orders are widely accepted and more secure than cash because they’re issued to a specific recipient, who must present identification to cash them. They are also a useful option for those without a checking account or those who prefer not to use personal checks.

Certified and cashier’s checks are more secure for larger payments but come with higher fees.

How to Fill Out a Money Order

How to Fill Out a Money Order Correctly

Filling out a money order is easy, but it’s important to do it correctly to ensure your payment is processed smoothly. Follow these steps:

Fill in the name of the recipient in the "pay to" section.
Add your address in the "purchaser" section
Use the memo field for payment details
Sign your name
Keep the receipt for your records.

1. Fill in the Name of the Recipient

In the "Pay to" or "Pay to the order of" field, write the name of the person or business you are paying. This ensures only the recipient can cash the money order.

2. Add Your Address to the Purchaser Section

In the "Purchaser" section, write your name and address. This will identify you as the person buying the money order.

3. Use the Memo Field

The memo field is optional but helpful. It typically includes an account number, invoice number, or other relevant payment details.

4. Sign Your Name in the Purchaser's Section

Sign the front of the money order where indicated. Leave the back blank; that’s where the payee will sign when they cash it.

5. Keep the Receipt for Your Records

Detach and save the receipt. This is important for tracking the payment or if you need to cancel the money order.

Where to Get a Money Order

Money orders can be purchased at a variety of locations, including retail stores, the USPS, and financial institutions. Popular retailers like Walmart, CVS, and Rite Aid offer money orders, and many USPS locations are open late or on weekends for added convenience.

When you purchase a money order, the issuer will imprint the date and amount on the form. You’ll then need to complete the remaining fields by hand.

The cost of money orders varies. Walmart charges around $1, while the USPS charges between $2.35 and $3.40 depending on the amount. Most money orders have a limit of $1,000, but you can purchase multiple at a time if needed.

You will need to provide valid identification to purchase or cash a money order.

How to Deliver a Money Order

Once you’ve filled out the money order, detach and keep the receipt. This serves as proof of payment and can be used to track or cancel the money order. Afterward, you can either mail or hand-deliver the money order to the recipient.

Only the person whose name appears on the money order can cash it, so it’s a secure way to ensure the right person receives the payment.

Advantages and Disadvantages of Money Orders

Pros

It's easy to find a place to purchase a money order.
You don't need a checking account to buy or cash a money order.
Only the recipient can cash the money order.

Cons

A money order can only be used for up to $1,000.
If you lose a money order, receiving a refund can take up to 30 days or longer.
If you forget to write the recipient’s name, anyone could cash the money order.

How to Cancel or Replace a Money Order

If you lose a money order or need to cancel it, contact the issuer right away. You'll need to fill out a cancellation form and provide your receipt. Be prepared to pay a fee for the cancellation, and depending on the issuer’s policies, you may be able to receive a replacement or a refund. Keep in mind that it can take up to 30 days for the process to be completed.

Whose Address Do You Put on a Money Order?

You need to put both your address and the recipient's address on a money order.

Do You Have to Sign a Money Order?

Yes, you must sign the money order in the "Purchaser" section. The recipient will sign it when they cash it.

What Happens If You Fill Out a Money Order Wrong?

If you make a mistake, such as misspelling the recipient’s name, you may need to request a refund, which could take 30 days or longer, depending on the issuer’s policies.

Can a Blank Money Order Be Cashed?

If someone finds a blank money order, the wrong person could fill it out and cash it. Always complete the necessary fields before handing over a money order.

Can Anyone Cash a Money Order?

No, only the designated payee can cash a money order, and they will need valid ID to do so.

The Bottom Line

For less than $1,000, money orders can be an easy way to purchase something, pay a bill, or pay back personal debt. While they’re widely available for a small fee at locations like Walmart, CVS, and USPS, there are some limitations, including the value cap and potential delays in receiving a refund if a money order is lost or canceled. Despite these drawbacks, money orders are a reliable alternative to checks and cash for people who don’t have access to a checking account or prefer a more secure method of payment.