Besides bank transfers and digital platforms, the United States Post Service (USPS) offers another way to manage international payments. It’s the USPS money order — a paper document similar to a check. You can get it from the U.S. Postal Service in exchange for cash, a debit card, or a traveler’s check, plus a fee. Then after filling it out with details about the transaction, you are ready to send money overseas.
In this article, learn more about the USPS money order and how to use one to make an international remittance. Are you ready? So read, set, and go!
What is a USPS money order?
A money order is a paper document, safer than cash and personal checks, to send and receive money domestically or from one country to another. In turn, a USPS money order follows the same concept, but you get it from the United States Post Service. It works as a deposit in your employee’s bank account and can also be exchanged for cash at a USPS. The service is widely accepted worldwide to manage payments and never expires.
After paying for a USPS money order, the U.S. Postal Service issues this document (similar to a check) and names a specific recipient. Besides, there is a prepaid stage, adding an extra layer of security to avoid bounces and ensure the transfer will reach the right destination.
It means the money is withdrawn from your account when you purchase it and fill out all the details to complete the transaction.
The total amount can’t surpass 1,000 USD within the USA and 700 USD overseas. So if you need to transfer more, it’s worth checking other options. In case it’s lost, stolen, or damaged, you can cancel, replace the order, or request a refund. Plus, only the person addressed in the paper can cash the money. You can track your money orders to check their status on the USPS website.
Pros and cons
One of the main advantages is that you don’t need a bank account to purchase a USPS money order. Besides, you can get a paper by visiting any USPS location, while only the recipient can cash it. Not to mention the prepaid stage, which brings more safety to the process, and the chance to cancel, replace or request a refund.
However, the limit of 1,000 USD or 700 USD per order can be a disadvantage if you want to make higher transfers. Money orders can only be purchased in person. Fees are also applied, turning this option into a costly one depending on your needs. In addition, if the paper has incorrect data, the money can get lost and reach the wrong hands.
How does a USPS money order work?
You can manage payments through a money order from the USPS within the United States and to 26 countries — mostly Central and South America. Check in advance if your target country is part of the list to save time and money. Let’s presume this option meets all you need for now to prepare an international remittance.
So before reaching a U.S. Postal Service location and getting the document, you are in charge of filling it out. When an international money order is printed, it shows only the amount. All the other fields are blank for you to add information about the transaction. This stage is similar to all money orders:
- Start with the “Pay to” field (beneficiary’s name, address, and account number) to ensure that only the recipient can cash it and check the spelling to avoid issues ahead;
- Fill out the “From” field by adding information about you and your address;
- Sign the front of the document to make it valid;
- Keep your receipt as a record of your payment, and use it to track the money or take further action, if necessary, like cancel or replace the order.
What are the costs for local and international transfers?
Each USPS money order has a cost. For transfers within the USA, fees vary from 1,65 USD to 2,20 USD, based on the amount. Now for international transactions, you can expect charges from 69,30 USD to 100,25 USD, according to the USPS website. The higher fee takes into account a wire transfer through the Sure Money program (allowing to send up to 1,500 USD per day).
From bank transfers to a USPS money order and digital platforms, you have many options when sending or receiving money overseas. The best choice for you is the one that offers convenience, agility, safety, and fair prices. If you seek a cost-effective way to manage international payments, Husky provides a multi-currency account to make a single payment or whole batches using multiple currencies.
Are you looking for a fast, easy, and cheap option to manage your payments? So join Husky and create your free account right now.