Bank transfers, post office services, and digital platforms (usually the best cost-benefit) are options to send and receive money from one country to another. Beyond this line-up, you can also use a money order to make purchases, pay bills, or fulfill payments instead of cash, credit cards, or checks. This alternative is similar to a check, but it’s prepaid and without the risk of bounce. It can be acquired in banks, retail stores, and other places.
Whether it’s your first time or you are only curious about it, this article will bring more clues regarding the alternative and how to fill out a money order. Learn more!
What is a money order?
A money order is one of the options available to manage payments by using a check from a third party. In a few words, a paper document that you can buy by giving cash or other guaranteed fund, plus a fee. It works in a very straightforward way. After paying for it, the bank or retail store issues the order, similar to a check. Then you fill out some information regarding the details of the transaction.
This kind of service was first introduced in 1864. When sent via mail, the cash used to be frequently stolen. So this was the safest way back then the US Postal Service found for soldiers and citizens to send money overseas. Despite the other methods available, many people still adopt it until now as an alternative.
With a money order in your hands and all the necessary data, you can send or receive international transfers no matter where you are. It can be used as a deposit in your employee’s bank account, for instance, or exchanged for cash at a post office. The big difference between this and a check is the prepaid stage. As soon as you purchase a money order, the money is withdrawn.
Money orders are similar to checks, but when we compare both, the first option keeps certain information (such as your bank account number) more private.
You can track the document besides the money can only be withdrawn by the beneficiary. It can also replace transactions that don’t allow payments by the traditional check. The benefits include:
- Safer than a check;
- Available in many places (more details ahead);
- No bank account is needed to manage a transaction;
- No risk of bounce as a check;
- Low cost to get one, plus you can use a credit card to buy it.
Besides the benefits, you will find some disadvantages that may make you think twice before choosing this option. Despite being used nowadays, money orders are less popular than digital solutions, such as Husky. After all, a digital currency exchange platform can be less expensive, faster, and bureaucracy free. So the drawbacks include:
- Costly compared to web platforms;
- Easy to find, but not everywhere accepts it;
- Can be a target for scams;
- Transactions may take some time to reach their final destination;
- High cost for frequent transactions (as you pay a fee every time you make a payment).
How can you get a money order?
Unlike electronic money transfers, money orders are not accessible online. So whenever you want to make a transaction, you must purchase it in person. Many places sell the document, including the post office, retail stores, banks, and some financial services. You can buy it with cash, debit card, or traveler’s check.
By the way, cash is always the best option to save money and avoid fees or a higher interest rate. As one of the benefits listed above, you don’t need a bank account. Plus, money orders have a limit: the amount can’t surpass 1000 USD. If you need to transfer more, check the options available. Don’t forget there is a fee based on the total you’re sending.
How to fill out a money order and send it?
Before sharing a step-by-step for filling out a money order, let’s check all the information to have in your hands. The document — both the format and the info — can be slightly different depending on where you get it. Here is what you need:
- Beneficiary’s name and address (yours too);
- Payment amount to be sent;
- Other relevant details, such as the account number and the purpose of the transfer (some service providers ask for it);
- A valid form of payment — cash, debit card, or traveler’s check.
Now you’re ready to buy and fill out your money order. Next, to make the process easier for you, we will share all the stages to complete it and start your transactions. It’s worth remembering that each detail matters, and you must inform all correctly. So pay attention to every step below.
Start by filling in the beneficiary’s name
The first step is simple. Write the recipient’s name (the person who will receive the amount) in the field “pay to” or “pay to the order of”. It can be the name of a business too. Make it clear while you fill the paper.
As soon as you add this information, this will be the only person or company authorized to cash or deposit it. If there is the option, put your name in the field “from”, “sender”, or “purchaser”. Check if the spelling is correct. After processing the money order, you can’t change the data. Any error can lead to delays.
Add the recipient’s address and yours
The next step is to include your current mailing address in the respective field (on the left), and the same goes for the person who will receive the money (on the right). This way, the recipient can contact you in case of any issues or questions about the payment.
Inform the account number in the memo
Every money order has a memo field. It can appear as “memo”, “payment for”, or “account number” This is the place where you inform the account number or the order number. Whether it’s a purchase from your suppliers or a payment to your employees, you can add a note to specify the purpose of the transaction.
Sign the document to make it valid
When you see the section labeled as “purchaser’s signature” on the front, this is where you can sign to endorse your money order.
Otherwise, it’s neither valid nor an official document. The field can receive other names depending on the document’s format, such as “purchaser”, “from”, “signer” or “drawer”. Leave the sign-in space on the back for the recipient. Make sure to review all the information before sending it.
Keep the receipt to track the transaction
After doing so, don’t forget to keep the receipt to track your transaction. It comes as a detachable part of the money order, but you also receive another one from the cashier.
Keeping it helps you follow if the amount reached the right person safely. Plus, it serves as proof of the payment. Besides, you can cancel a money order if you have any issues as long as you have it.
Why choose Husky to pay your employees in Brazil?
Money orders, indeed, are an alternative to sending and receiving money. However, if you deal with frequent transactions, the option can be costly. In this case, it’s better to count on a digital platform.
At Husky, you can manage a single payment or whole batches from everywhere with a multi-currency account while getting online support anytime. So it converts transfers from any currency to BRL.
Beyond practicality, your money is safe with Husky. Under BACEN’s regulations, the platform follows risk and compliance assessments. Plus, you save money by paying 2% or even only 1% of the amount for each international transfer and the IOF (0.38% or 1.1%).
Do you want to send money to Brazil quickly, easily, and cheaply? Follow other entrepreneurs and companies and join Husky to optimize your payments.