A money order allows you to send funds securely — and with a paper trail - Business Insider

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In many ways, money orders work like Venmo without the internet

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.You can buy a money order from a bank or credit union, some grocery stores, the post office, and directly from sellers like Western Union and MoneyGram.

Money orders are issued through partnerships with major providers like Western Union and MoneyGram. When buying a money order, plan to pay with cash, or sometimes debit, including a fee that is typically around $1 to $5 per money order. After your money order is printed, you can fill in the payee and sign it, just like a check from your own. The recipient will then endorse the back and deposit it like a check in their bank account, or cash it.

Be sure to keep your receipt when buying a money order. If your money order is lost, you can generally get it replaced if it hasn't been cashed or deposited.Most people won't want to take the extra time and expense of using a money order to send funds to family or friends. You can usually do that with your checking account or an online payment app for free. Money orders are best for purchases where you don't know the other person well.

 

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