Why Money Orders Will Never Go Away

Why Money Orders Will Never Go Away

Money orders are sometimes considered old fashioned or no longer needed due to the advances in technology and electronic money transfers, but they actually are not going away. Why is that? Even though many payments and even currency systems are becoming digitized, there is still a demand for cash and money orders are still a reliable way to keep cash secure. A money order is like a check, but instead of transferring funds from a bank account, it’s paid upfront with cash so that the recipient can use it immediately. Reasons people use money orders is that they can pay someone without having to use cash, and they can also avoid fees that come with bounced checks. There are several situations where money orders would be a better option to use than cash, checks and even credit cards.

Paying New Landlords

Every landlord has their own policies for different reasons on what kind of payments they accept. Some may prefer money orders while others may require either cash or check. But paying rent through money orders can be a way to build rapport with your landlord if you want them to know you’re a reliable tenant. You should always make sure it’s listed as a payment option on your lease and keep your money order and rent receipts as proof of payment.

Sending Money Through the Mail to Friends or Family Without Bank Accounts

Not only can money orders be helpful for those who don’t have bank accounts who need to send money; they also can be cashed out at retail stores or check cashing stores by recipients who also don’t have a bank account. What’s more important is that when you’re sending someone money through the mail, you’re much better off sending it through a money order because sending cash is something you should never do given the high risks of it getting lost or stolen. Even sending a personal check may not be a good idea if they don’t have a bank account and have limited or no options for cashing it. A money order is usually the best way to make sure your friends or family get their money in the mail because in the event it is lost, you can usually cancel it and send a new one.

Paying Someone When You Don’t Want Your Bank and Personal Information Exposed

Money orders can offer senders a better level of privacy than personal checks when you need another option besides cash. They will not have your physical address, bank account numbers, or phone number listed on them the way that most personal checks do. Since they’re already prepaid, all you need to do is have the sender’s full name written on them, and chances are much less likely that your personal information will be compromised.

Using for Cash Pickup While Traveling

If you don’t have a bank account and are going to be traveling, or even if you do but may be leery about using an ATM, using a money order to pick up cash when you need it may be a better option. You could have your money order made out to yourself and send it via mail to a friend’s house where you’ll be staying, or even to the front desk of a hotel that you’ve reserved. Or if you prefer, you could have it transferred electronically and pick up cash at a pickup location using transaction information. Some people who’ve used these kinds of services have not only done so to avoid high ATM fees; but it’s also saved them losses on exchanging cash for foreign currency while traveling overseas.

The bottom line is even with electronic transfers and mobile payments today, there are still so many situations where checks and cash are needed, and using a money order in those situations instead can be safer and more reliable for ensuring your intended recipient gets their money. Getting a money order is usually very simple and you can usually prepay it in any amount under $1,000 using cash, check, debit or credit card. If you’re receiving a money order and plan to cash it, it’s always a good idea to make sure the place you plan to cash it at allows you to do so.