Do you need to buy money order online? Before you do you should read this information. Sometime around 1792 a private company located in Great Britain started the world’s first money order company.
The venture wasn’t particularly successful and in 1836 the company was sold to a private company which promptly lowered the fees. The result was a significant increase in the popularity of money orders and the true beginning of the money order system which has become so widespread both locally and globally. The post office, having seen the success of the money order system, took it over in 1838. The fees were again lowered thereby further increasing the popularity of money orders.
Fast forward to modern times and things have come a long way. Money orders can be written in any amount desired, up to $1,000. There are two parts to a money order: a stub which is usually retained by the purchaser and the check portion which is remitted to the payee. A machine prints the amount on both the stub and the check. The issuer or agent will generally retain some documentation either in the form of a hard copy or electronic record of the transaction.
While money orders were from the beginning used to send money to people who lacked checking accounts they have become a way to send money or pay for goods and services when the customer doesn’t have time for a check to clear. They are also a better option than cash when it comes to sending money through the mail system.
Because the Bank Secrecy Act and the Patriot Act has placed strict regulations on the issuance and use of money orders compared to personal checks, certified checks and personal checks many banks, insurance companies and brokerages won’t accept money orders for payment.
Also, the use of counterfeit money orders has risen significantly since 2006. This not so much the case with online money orders. With money order fraud, a common scam involves sending a fake money order to a victim as payment for a good or service. Because money orders don’t get cleared through the check clearing house system but instead through the postal system they take longer to bounce. When the bank finally discovers that the money order is fake the victim winds up paying for the face value amount. This can be avoided with an online money order.
When you buy money order online you can pay for goods and services so long as the common pitfalls are taken into consideration. An online money order can save you the time you’d otherwise spend if you had to actually travel to a brick and mortar establishment and buy a money order from an agent. You can send a money order online with the help of various services.