How to fill out a money order: A step-by-step guide

A money order is a prepaid payment method that works similarly to a check but with one key difference: the funds are guaranteed. Because you pay for the money order upfront, the recipient knows the payment won't bounce, which makes it a more secure option for both parties.

You can purchase money orders at banks, credit unions, post offices, and many retail locations like grocery stores and convenience stores. You'll pay the face value of the money order plus a small fee, which typically ranges from a few cents to a few dollars depending on where you buy it.

Money orders are commonly used for:

• Paying rent to a landlord

• Sending money to someone who doesn't accept digital payments

• Making purchases where a personal check isn't accepted

• Sending funds through the mail when a more secure method is needed

How are money orders different from checks? 

Unlike a personal check, a money order doesn't require a bank account or reveal any of your banking details. This makes it a practical option for people who don't have a checking account or prefer not to share their financial information. It also carries more trust than a personal check, since the funds are already secured at the time of purchase.

One important thing to note: Unlike digital transfers or high-yield savings accounts, money orders are physical documents that must be handled with care to prevent loss or theft.

Filling out a money order is a quick process, though the layout may vary slightly depending on where you purchased it. Here's what to expect at each step.

1. Enter the recipient’s name

Locate the field labeled Pay to the Order of or Pay to. To complete this section: 

• Write the full legal name of the person or business you’re paying

• Use ink and print clearly to avoid any ambiguity 

• Once this name is written, the money order can only be cashed or deposited by that specific party

2. Add your address in the purchaser section

Most money orders have a line labeled "purchaser," "from," or "address." Fill in your name and address here. This identifies you as the person who sent the payment and gives the recipient a way to reach you if there's an issue. 

As a note, some issuers only ask for your name, while others require a full mailing address, so fill in whatever the form requests.

3. Include account numbers or memos

If you're using the money order to pay a bill, write the relevant account number or reference number on the memo line. This helps the recipient apply your payment to the correct account. 

For rent payments, you might include your unit number or lease reference. If there's no specific account to note, you can leave this field blank or add a brief description of what the payment is for.

4. Sign the front of the money order

Look for a field labeled “Purchaser’s Signature” or “Drawer.” Sign your name here, just like you would if you were signing a check. 

Note: Do not sign the back of the money order. The back is reserved for the recipient to endorse when they cash or deposit it.

While the general steps apply to all money orders, here are specific details for common issuers. 

USPS money orders

USPS money orders can be purchased at any post office location using cash or a debit card. Credit cards are not accepted. 

The maximum amount for a single domestic money order is $1,000, and fees range from $2.55 for amounts up to $500 to $3.60 for amounts between $500.01 and $1,000.

The form includes fields for "pay to" (the recipient), "from" (your name and address), and a memo line for account or reference numbers. Sign the front of the money order to make it valid, and don't sign the back, as that's where the recipient endorses it. 

Fill out the money order at the counter as soon as you purchase it, and keep your receipt. You'll need it to track or replace the money order if anything goes wrong.

Western Union money orders

Western Union money orders are available at authorized agent locations, including convenience stores, grocery stores, and pharmacies. Fees vary by location but are typically a few dollars.

The layout is similar to other money orders. Write the recipient's name in the "pay to the order of" field, add your name and address in the purchaser section, and use the "payment for/acct. #" field for any reference details. Western Union recommends filling out your money order in big, dark letters to make it harder for someone to alter.

Walmart money orders

Walmart money orders are issued through MoneyGram and can be purchased at the MoneyCenter or customer service desk at Walmart locations. Walmart has a maximum $1 fee per money order, making it one of the most affordable options available.

The fields are the same as a standard MoneyGram money order, and include:

• Payee name

• Purchaser name and address

• An optional memo line

Fill it out completely before leaving the store, and hold onto your receipt in case you need to track or cancel the order later.

A small error on a money order can lead to delays, rejected payments, or even lost funds. Here are the most common ones to watch for.

• Leaving the "pay to" field blank after purchasing. If the money order is lost or stolen before you fill in a recipient, anyone can write their name in and cash it.

• Misspelling the recipient's name. Most issuers won't allow corrections, so a misspelled name could mean the recipient can't cash it and you'll need to request a replacement.

• Signing the back instead of the front. The front signature line is for you as the purchaser. The back is reserved for the recipient's endorsement.

• Using pencil or erasable ink. Always use a pen with permanent ink. Anything that can be erased or altered makes the money order vulnerable to fraud.

• Throwing away the receipt. Your receipt is the only way to track, cancel, or replace a money order. Keep it until you've confirmed the payment has been received and cashed.

• Forgetting to include an account or reference number. If you're paying a bill, the recipient may not be able to apply the payment to your account without this detail.

• Waiting to fill out the money order later. Complete every field at the point of purchase. The longer a money order sits partially blank, the greater the risk that someone else can fill in their own information. 

Money orders aren't the only way to send a guaranteed payment. Depending on your situation, one of these options may be more convenient.

• Cashier's checks: Issued by a bank and drawn from its own funds, making them one of the most trusted forms of payment. They're often used for larger transactions like security deposits or vehicle purchases, and typically cost between $5 and $15.

• Certified checks: Similar to a personal check, but your bank verifies and sets aside the funds before issuing it. This gives the recipient added assurance that the check won't bounce.

• Wire transfers: Allow you to send money directly from one bank account to another, often within the same day. Useful for large or time-sensitive payments, though fees can range from $15 to $50 depending on the bank.

• Peer-to-peer payment apps: Services like Zelle, Venmo, and PayPal let you send money digitally using just an email address or phone number. Most transfers are free or low-cost, though they may not be accepted for formal payments like rent or legal fees.

• Online bill pay: Most banks offer free bill pay through their online banking platform, which lets you schedule one-time or recurring payments directly from your account without sharing your banking details with the recipient.

Keep in mind that while money orders are useful for those without bank accounts or for one-time physical payments, they may not be the most efficient way to manage larger sums of money. For long-term financial planning and security, digital banking options offer more transparency and the ability to track every transaction instantly.

Managing your funds through a secure platform also allows you to focus on online safety while earning interest on your balance. Digital transfers and electronic bill pay services can provide a similar level of security as a money order without the need to visit a physical location or pay per-item fees.

Filling out a money order correctly takes just a few minutes, but it's worth getting right. Complete every field at the time of purchase, keep your receipt, and double-check the recipient's name before you walk away. 

Whether you're paying rent, settling a bill, or sending funds to someone who doesn't accept digital payments, a properly filled out money order is one of the simplest and most secure ways to get it done.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.