How to Fill Out a Money Order Guide
Understanding Money Orders and Their Purpose
A money order is a paper document that works like a check but carries less financial risk for both the sender and receiver. Unlike personal checks, which draw from a bank account that may have insufficient funds, money orders are prepaid. This means the money is already transferred to the issuing company before the money order is created. Money orders function as a safer alternative to sending cash through the mail or paying with a check when the recipient has concerns about bounced payments.
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Money orders have been used for over 150 years as a way to send money securely. According to the Federal Reserve, millions of money orders are issued each year in the United States through various outlets including post offices, banks, grocery stores, and check-cashing services. They remain popular among people who don't have bank accounts, those making payments to unfamiliar parties, and individuals sending money through the mail.
The cost of a money order typically ranges from $1 to $10, depending on the amount being sent and where you purchase it. The United States Postal Service charges less than $2 for money orders up to $500, while other vendors may charge slightly higher fees. This cost is separate from the money order amount itself—if you want to send $200, you pay for the $200 money order plus the issuing fee.
Money orders work differently than other payment methods because they require you to pay the full amount upfront. You cannot write a money order for more money than you have available, making it impossible to overdraft. This built-in protection is why landlords, utility companies, and others often request money orders for initial payments or security deposits.
Practical Takeaway: Before filling out a money order, understand that you'll need cash or a debit card to purchase it, the funds are immediate and final, and the fee is a separate cost from the amount being sent.
Where to Purchase a Money Order
Money orders are sold at numerous locations throughout the country, making them convenient to obtain. The most common place to purchase a money order is the United States Postal Service. Post offices exist in nearly every community, and postal employees are trained to help customers with money order transactions. Other readily available sources include banks and credit unions, which often issue money orders for customers, whether or not they maintain accounts there.
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Grocery stores and supermarket chains frequently offer money order services through their customer service desks or money services centers. Retailers like Walmart, Target, and other major chains typically sell money orders during regular business hours. Check-cashing stores and payday loan locations also issue money orders, though fees at these establishments may be higher than at post offices or banks.
When choosing where to purchase a money order, consider the fees charged by different vendors. The United States Postal Service offers competitive rates—as of recent years, money orders up to $500 cost less than $2, and orders up to $1,000 cost around $3.25. Bank fees vary but are often comparable. Third-party vendors may charge $3 to $10 depending on the amount. You should ask about fees before purchasing to avoid surprises.
Some locations have restrictions on the maximum amount of money orders they can issue in a single day. If you need to send a large sum, you may need to purchase multiple money orders or contact the issuer in advance. Additionally, most retailers and postal services require payment in cash or via debit card—they typically don't accept personal checks or credit cards for money order purchases. Some locations may have different operating hours, so checking ahead by phone can save time.
Practical Takeaway: Visit the postal service for lower fees, but check your local grocery stores and banks for convenient locations near you. Always ask about current fees and payment methods before making your purchase.
Gathering Required Information Before You Begin
Before you sit down to fill out a money order, gather all the information you'll need. This preparation prevents mistakes that could delay payment or create confusion. The primary pieces of information required are the amount of money you're sending, the name of the person or business receiving the money, and the address where the money order should be sent.
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For the recipient's name, use the exact legal name or business name as it appears on official documents. If you're sending money to a business, verify whether you should write the business name, a specific department, or an individual's name at that business. For example, if paying rent, confirm whether the money order should be made out to the landlord's name, the property management company, or a specific trust or entity. Using an incorrect name can cause the money order to be rejected or create disputes about payment.
Verify the recipient's mailing address before filling out the money order. Double-check the street address, city, state, and ZIP code. Incorrect addresses result in returned money orders, which delays payment and creates extra work for both parties. If you're uncertain about any details, contact the recipient directly—a quick phone call or email prevents problems.
Have your identification available when you go to purchase the money order. Most issuing locations require a government-issued ID, such as a driver's license or passport. Some institutions may also request your address or phone number. Bring the actual amount of money you plan to send, plus enough for the fees. For example, if sending $300 and the fee is $1.85, bring $301.85 in cash or have that amount available on your debit card.
Practical Takeaway: Write down the exact recipient name and address before arriving at the location where you'll purchase the money order, verify these details are correct, and bring your ID and payment method with you.
Step-by-Step Instructions for Filling Out a Money Order
Most money orders follow a similar layout with specific fields that must be completed accurately. The first field is usually labeled "Pay to the Order of" or simply "Payee." This is where you write the name of the person or business that will receive the money. Use clear, legible handwriting and write the complete name. If the recipient is a person, write their full name. If it's a business, write the business name as it appears on official documents. Do not use nicknames or shortened versions of names, as this can cause the money order to be rejected.
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The next field is typically the amount line. Most money orders have two spaces for the amount—one for numerals (numbers) and one for words. Write the numerical amount in the box provided, using a dollar sign and decimal point. For example, write "$150.00" not "150" or "$150". Then write the amount in words on the designated line. For $150.00, you would write "One Hundred Fifty Dollars and 00/100." This written-out amount serves as a verification tool—if the numerical and written amounts don't match, the money order may be rejected.
The memo or description line is optional but recommended. This field allows you to note what the payment is for, such as "Rent for March" or "Invoice #12345." This notation helps both you and the recipient keep track of what the payment covers, particularly useful if multiple payments are being made. Keep the memo brief and clear.
The sender's information section requires your name and address. Write your complete name legibly. Include your full street address, city, state, and ZIP code. Some money orders also request a phone number. This information allows the recipient to contact you if questions arise about the payment. If the money order is lost or never received, this information helps trace it. Some locations may pre-print your information if you're a customer, but verify it's correct before the money order is issued.
After completing all fields, review your work before handing the money order to the issuing agent. Check that the recipient's name is spelled correctly, the amount in numbers matches the amount in words, and your information is legible and accurate. The issuing agent will process the money order and provide you with a receipt. Keep this receipt for your records—it contains a tracking number and proves you purchased the money order.
Practical Takeaway: Write clearly, match numerical and word amounts exactly, include a memo if needed, ensure your complete contact information is correct, and keep your receipt for tracking purposes.
Common Mistakes to Avoid When Filling Out Money Orders
One frequent error is misspelling the recipient's name. Even small variations in spelling can cause problems. For instance, if the recipient's name is "Michael" but you write "Micheal," the money order may be rejected. The recipient may also have difficulty cashing a money order made out to an incorrect name. Before filling out the money order