What Is a Money Order? How to Fill One Out Right

A money order is a guaranteed payment for a set dollar amount that you pay for in advance. The amount is printed right on it, so it cannot bounce the way a personal check can. People use them for rent, suppliers who will not take a card, and any time the other side wants a sure thing.

Buy one with cash (or sometimes a debit card) at the post office, Walmart, most grocery and convenience stores, and many banks. The USPS, MoneyGram, and Western Union versions shown here are the common ones. Whichever you get, fill it out as soon as you buy it so it cannot be used by anyone else if it gets lost.

Find the line that says 'Pay to the Order Of' (on a USPS one it just says 'Pay to') and write the full name of the person or business you are paying. This is the one field you cannot get wrong.

Ask the person or company exactly how the name should read and get it in writing by text or email. If they are 'ABC Company LLC' and you only write 'ABC Company,' their bank can refuse it. Having their instructions in writing also means a typo is on them, not you.

Look for the signature line, usually marked 'Purchaser' or 'Purchaser's Signature.' That is you, the person who bought the money order. Sign there.

Do not sign the back. The back is where the person receiving the money order endorses it when they cash or deposit it, exactly like a check. Signing the wrong spot can hold up the payment.

Fill in the purchaser address field with your own address. On the Western Union and MoneyGram versions it sits just below the pay-to line. This tells the recipient who the payment came from.

If you are paying a bill, you can use the address tied to that account, like your office address for rent. It gives the company an easy way to match the payment to you.

Most money orders have a memo, account number, or 'payment for' line. Use it. Write your account number, invoice number, or a short note like 'June rent.'

This is what helps a busy office apply your money to the right account instead of letting it sit unmatched. A money order with no reference on it is easy to lose track of once it lands in a stack of mail.

Every money order comes with a receipt stub, usually a tear-off section at the bottom with the serial number on it. Keep it. If the money order is lost or stolen in the mail, that receipt is how you track it or request a replacement, and without it a refund is nearly impossible.

Snap a photo of the stub and save it to your phone or cloud storage too. Hang on to it until you have confirmed the payment was received and applied, then you can let it go.