money orders are essentially the same as bank checks – they are a secure way to send money to someone else. However, while bank checks are backed by a bank, money orders are not. Money orders can be purchased from various places such as: B. US Postal Service (USPS) offices, drug stores, convenience stores, grocery stores, and banks and credit unions.
How does a money order work?
When you buy a money order, you must prepare the money in advance, just like you would with a cashier’s check. You’ll typically need to pay with cash, a debit card, or traveler’s checks – personal checks and credit cards aren’t typically accepted. Unlike cashier’s checks, money orders have a maximum limit, typically around $1,000 (if you need a larger amount, you can purchase more than one money order). You will also be charged a transaction fee for a money order, but this tends to be cheaper than bank checks. Depending on where you buy a money order — and how much it costs — the fee will vary, but you can usually expect to pay anywhere less than $1 to $5.