In recent times,Money Orders have become a very reliable and secure option for making payments. This is because you do not need to use cash or a credit card. It is a very useful tool for those citizens who do not have access to traditional bank accounts.
This payment method is very popular among migrant communities in the United States. Although it is not only used by them, it has also gained great recognition among those who prefer not to depend on the conventional banking system, as it is a prepaid document that guarantees the payment of a specific amount of money to the previously indicated recipient.
To acquire a Money Order, you simply pay the desired amount plus a small issuing fee. This can vary between 1 and 5 dollars, according to the rate of the provider with whom the document was acquired.
How Money Orders work
These forms of payment are purchased at banks, authorized stores or post offices, and do not require a bank account. This makes them a great alternative for people without access to the traditional financial system due to their redeemability at these same establishments. In addition, because they are prepaid, they eliminate the risk of bounced checks, which makes them a much more reliable option for important transactions such as utility or rent payments.
Advantages of using a Money Order
Know that this tool offers a number of benefits or advantages, such as those shown below:
- You don’t need a bank account: they are an excellent alternative for people who do not manage bank accounts, since they do not require credit checks or bank details.
- Secure payments: since they are prepaid, all risk associated with bad checks is eliminated, which makes them a very reliable tool for large payments.
- Ideal for sending money by mail: its physical format is safer than sending cash, and in case of loss, the money can be recovered if you keep the receipt.
- International transactions: some providers allow you to issue “Money Orders” valid in other countries. It is also easier to send money to family or friends outside the United States.
Limitations of this tool
Not everything is rosy for Money Orders. Although they are very useful, they have certain limitations or restrictions to which you should pay close attention in order to avoid inconveniences. For example, they have a limit per transaction, which is usually one thousand dollars. In addition, it is necessary to present identification when acquiring them. On the other hand, not all places accept this form of payment, so it will be crucial to verify with the recipient if he/she will be able to use this method.
Where can I buy Money Orders?
There are several places in the United States where you can purchase a Money Order. Supermarkets, post offices and well-known national and international stores have these payment methods available. Here is a list of some of the places where you can buy them:
- Walmart: they are available at customer service or at the store’s money center. They have a very low fee, usually around USD 1, with a limit of USD 1,000 per transaction. These money orders are issued by MoneyGram.
- Post Offices (USPS): US Postal Service fees range from $2,000 for amounts up to $500 to $2.90 for amounts up to $1,000. The limit per money order is $1,000. To use this method, you must go to any post office (You can check all available post offices at this link).
- 7-Eleven: only available at some branches. Fees vary between 1% and 3% of the amount, depending on the location. The limit per transaction is $500 and they are issued by MoneyGram or Western Union.
- Publix: Offers Western Union Money Orders for 0.85 cents. The limit is $500 and is only available for purchase in certain states, such as Georgia and Florida.
- Chase and other banks: Chase, Wells, Bank of America or Fardo offer this alternative to their customers. Fees range around USD 5.00, although they may be free for some customers. The limit per transaction is USD 1,000.
- Local credit unions: another reliable option for obtaining money orders. Prices and limits vary according to the institution.
If you wish to continue reading more economic news to keep you informed, you can enter the enabled section of this digital newspaper. Our editors publish daily interesting articles.
