Most of the time you need to pay a bill, you’ll reach for your cash, credit or debit card, or personal check. While these are common methods, they are not the only options available. One of the easiest and safest ways to pay a bill or purchase something is with a money order. Money orders are similar to checks—they’re both made out to a person or company for a specified amount. While not always the go-to method of payment, there are certain times when a money order should be considered for bill payment or to purchase an item.
Keeping Personal Information Safe
With identity theft becoming an ever-increasing problem, many people are reluctant to send personal information, such as bank account numbers, to people or organizations they do not know personally or trust completely. By using a money order rather than a check, the financial transaction can be completed without having to provide bank account numbers or other information found on personal checks that could be used for identity theft.
Safer Than Sending Cash
While virtually any business will accept cash as a form of payment if done in person, sending it through the mail is another matter. Most businesses will not accept payments of cash that are sent to them in the mail, so this is another time when a money order can come in handy. Since a money order can be tracked, the person who bought the money order can issue a “stop payment” if the original money order is lost or stolen. If cash is sent in the mail, the money can be stolen and there is no recourse for the sender.
A Guaranteed Form of Payment
If you need to make a bill payment or purchase an item quickly, using a money order can be better than using a personal check. By sending a money order, the company or organization does not need to worry about accepting a personal check that may bounce due to insufficient funds. Though a money order is similar to a check in many ways, since it's already been paid for, it is guaranteed by the issuer to be paid when presented by the receiving party. The cost or fee associated with a money order is significantly lower than an overdraft fee or bounced check!
While not considered one of the most common methods of payments in today's world, money orders, when used now and then, can prove to be a very useful and convenient payment option.