Can you change payee on money order

The requirements to fill out a money order vary by institution, whether its Western Union or the United States Postal Service. Some issuers limit your payment options, too. Here are the steps to follow when you fill it out:. Spell everything correctly, making sure your writing is legible and in ink.

There may be a second address field where you can fill in the address of the person or business you are paying or sending money to. A memo line allows you to note what the money order is designated for. For example, you can specify that it is to purchase a specific item or pay off a particular debt.

If you have an account or order number from the payee, this is where to include it. Sign the front of the money order in the portion labeled for your signature. This is where the person or business that you are paying endorses the money order before they cash it. Keep your receipt, which contains a tracking number. This number can tell you if the right person cashed your money order.

And in case it is lost or stolen, you can use the tracking number to help you replace it. There may be a processing fee for replacing money orders. Your receipt can also help you cancel the money order should your plans change. You can buy a money order at banks and credit unions, check-cashing businesses, the U. Postal Service, many grocery stores and some big-box stores. You can use cash or a debit card to buy the money order.

However, you may want to avoid using your credit card to purchase a money order, as your credit card company may consider the purchase a cash advance. Cash advances may trigger steep fees, and you may be hit with a higher-than-normal interest rate until you pay off the balance.

There may be limits on the size of the money order you can purchase. Money orders can be a useful way to send and receive money. They are a widely accepted way to make a payment, they never expire and if they are lost or stolen, they can often be replaced. Knowing the ins and outs of how to acquire and use money orders allows you to add this dependable tool to your financial toolkit.

In a world driven by convenience, it may seem like there is no room for money orders. However, there are several excellent reasons to choose a money order over other forms of payment:.

If a money order goes missing, there are systems in place to replace a lost or stolen money order, so you do not lose the money.

You may have to pay a fee to replace a lost or stolen money order, but that is far preferable to losing the full amount. If you are the recipient of a money order, you can generally deposit it into your bank account for free.

If you prefer to cash a money order, you may be able to do so at your bank or any institution that issues money orders. But you may have to pay a fee of up to a few dollars. For instance, the post office cashes USPS money orders for free. When you deposit or cash a money order, you will need to endorse it on the back in front of the counter agent. Do not sign the money order before going to cash or deposit it.

To start, they are not a convenient form of payment, since they must be purchased in person. Fees are another potential downside of money orders.

Finally, money orders are also commonly used in scams. These scams often involve a fraudster sending the victim a bogus money order for a large amount and asking for a portion of the money back.

By the time the victim discovers that the money order is fraudulent, they may have already deposited the money into their checking account and sent money back to the scammer. Be leery of any money order sender who seems to be in a hurry for you to deposit the document.

Money orders may not be a go-to alternative when other payment options are available, but they are a more secure form of payment than cash. If you need to provide a guaranteed payment, a money order is a low-cost option widely available at many locations across the country. Although money orders have some drawbacks, their usefulness as a secure payment method means they can be a savvy choice for transactions.

Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors.

Her background in education allows her to make complex financial topics relatable and easily understood by the layperson. She has worked as a personal finance editor, writer, and content strategist covering banking, credit cards, insurance and investing. As a small business owner and former financial advisor, Daphne has first-hand experience with the challenges individuals face in making smart financial choices.

Select Region. United States. United Kingdom. Emily Guy Birken, Daphne Foreman. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

What Is a Money Order? How to Purchase a Money Order If you need a secure payment option, you can purchase a money order from one of the institutions or establishments that sell them. So buying a money order typically requires you to visit a location that sells them and leave with a paper money order in hand.

Fortunately, thousands of U. Banks, credit unions, grocery store chains, and check-cashing stores sell money orders, too. International prices are significantly higher.

Prices at banks, credit unions, and other sellers can be significantly higher. On the other hand, some banks offer them free to specific categories of customers. Credit card companies generally charge hefty fees on money order purchases because they treat them like cash advances.

You also could be piling up interest charges, so avoid this option if possible. First, you'll need to know the exact dollar amount you want.

This will be machine-printed directly on the money order, and you won't be able to alter it later. You also need to know the proper name of the person or company you'll make out the money order to. Be precise, or the recipient may have trouble cashing it. If you're paying a business, add the account or invoice number to ensure the payment is appropriately credited to you.

You can fill this information out later, but a blank money order as long as the cash amount is on it is as good as cash if it's lost or stolen. Also, bring a debit card or cash to pay for your money order, unless you're at your bank and can withdraw it from your account.

If you forget to fill out the name of the recipient on your money order and then lose it, anyone can cash it, it is basically found money. The U. Postal Service carries its brand and format of money orders, as do some banks and credit unions. Other sellers generally offer one of two brands: MoneyGram is sold at all Walmart and CVS stores, while Western Union is sold at 7-Eleven, some grocery chains, and check-cashing stores.

Whichever type you get, the seller will imprint the date and the amount and then give you the incomplete money order to finalize by hand. There are just three pieces of information you'll be asked to provide to complete any money order: the recipient's proper name, your address, and your name or signature.

Money orders ask for your address so that the recipient can contact you if a problem occurs. If you're not comfortable sharing this information, there's nothing to stop you from leaving this field blank or entering your email address or cell phone number instead.

One required field on any money order is an indication of the sender. On most money orders, it's your signature that's requested, just as you sign a check. One optional field on most money orders can be quite useful. Or you can use the space for any other information, just like you would use the memo field on a check. USPS money orders offer additional space for the address of the recipient. On MoneyGram and Western Union orders, only your address is requested. MoneyGram money orders are confusing.

The blank says "Address," with no clues on whether your or the recipient's address is wanted, and it means the sender's address. Once you've filled in all the fields, be sure to detach the receipt. This stub provides the money order's official identification number, and you can use it to track whether the money order was cashed, and it's also a record of your payment.

Now that you have a completed money order in hand and a receipt, you can safely hand-deliver the money order or mail it to your recipient. Only the recipient will be able to cash it. While a money order is seemingly straightforward and straightforward to use, there are mistakes to avoid when using a money order. The most important thing is to make sure you spell the recipient and payee's names correctly and fill out all the parts of the order.

If you forget to fill something out or misspell a name, it can void out the order. Never leave anything on the order blank, and don't forget to keep your receipt of the transaction. Don't forget to shop around for the lowest fees for a money order, either. One obvious advantage of using a money order is its simplicity. You can walk into a big box or even your local grocery and walk out with a money order, You don't need to have a checking account to purchase a money order, either, and they are simple to fill out.

The disadvantages are minimum, but they may be enough to dissuade you from using one. First, you have to pay a fee to purchase a money order, something you don't have to do when using a check.

If you lose a money order and it is not filled out correctly, it can be easily stolen. You'll have to purchase more than one, and with each order comes additional fees. If you lose or need to cancel your money order, it can take up to 30 days or longer to be reimbursed.