In a digitally advanced world where people transfer money using bank accounts or different apps, do we still need money orders? Are Money orders more convenient? How does a money order work? All the info you want to know about Money Order Bounce is here. Read till the end to see everything about Money orders.
Brief introduction of Money Order
A money order is a form of payment or money transaction. Money orders are prepaid.
It can be an alternative to a cheque. You have to buy a money order by paying cash. So, there are no possibilities of it attaining a bounce.
Two people or parties can use this form of payment in exchange for a service. You can also recover your cash if your money order is stolen by showing its receipt.
Can a Money Order bounce?
No, a money order can never bounce because it is prepaid. Even though a money order works like a cheque, it cannot rebound like a cheque.
Moreover, if it gets stolen, the thief can’t use it. If he tried to cash it in the bank or any other cashing store, a third party knows it’s stolen.
There is a risk of money order bouncing only if the linked account does not have enough money.
The working of a Money Order
A money order works like a check, except that it is prepaid. You need to buy a money order. You can buy a money order from US Post offices or any bank or a convenience store.
Always write the recipients’ names on the money order with your name. This way, nobody can cash the money order except for the recipient.
When the recipient gets the money order, they can cash it by taking it to the bank, ATM, or location written on the money order.
You can also track your money order using the receipt you get while purchasing a money order. It will help you if your money order gets pinched.
Reasons for bouncing a Money Order
Money orders are prepaid. They can not bounce. There is so less chance of money order to bounced.
In some conditions, it can bounce:
- If your linked account does not have enough money.
- If there is an error in the info required for cashing a money order.
- If you are not the recipient and cashing someone else money order.
- If the sender has canceled the money order.
- If someone is cashing a stolen money order.
How to fix if your Money Order bounced?
Money orders are prepaid. So, money orders can never bounce.
If your money order is bounce, you should contact the sender. You should ask them about the money order. The sender can cancel a money order any time before you cash it.
How can you Cash a Money Order?
Here is a guide to cashing a Money Order:
- Take your money order to your desired location, such as a bank or convenience store.
- Sign the backside of the money order.
- Sign in at the counter and not earlier.
- Prove your ID
- Receive payment
If the cash is transferred to your bank account, it will take a few days for the payment to be available.
Are Money Orders considered safe?
Yes! Money orders are a safer means to transfer money. As they are prepaid, there are no chances of it getting bounced.
Moreover, you can track your money order if you have the slip. It can help you to recover your lost or stolen money order.
No one other than the recipient can cash the money order. So, it’s safe.
Benefits of using a Money Order
Following are the rewards of utilizing a money order:
- You can track your money order.
- No one cash order except the recipient.
- No chances of getting bounced.
- The lost money order can be recovered.
- Safer means allocating money
Disadvantages of Money Order
Here are how sometimes money orders can be disadvantageous:
- They have a limit to purchase.
- You need to pay the fee separately if you are buying more than one money order.
- You have to be in person.
Conclusion
A money order is a paper form of payment. It is an alternative to a cheque.
It is a safer means for money transactions.
A money order cannot ever bounce because it is prepaid. The risk of bouncing is present when the linked account does not have enough money.
You need to purchase it and send it to the recipient. No one can cash it other than the receiver. For cashing a money order, the recipient needs to visit a bank, a cashing store, or any retail store.
You can also track your money order by the receipt you get on purchase. This way can recover your lost money order.
But it has limitations for purchase as you have to pay a separate fee for each purchase.
