What To Fill Out On Money Order

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A money order is a secure form of payment you can use in place of checks, cash or credit cards. Money orders can be purchased through banks, money transfer providers such as Western Union or MoneyGram, the U.S. Postal Service, grocery stores and other retail locations.

Filling out a money order isn't complicated, but it does require entering the right information and doing so correctly. If you're filling out a money order for the first time, it's helpful to understand how to do it step by step.

What Information Is Needed for a Money Order?

A money order is essentially a type of prepaid check. And, just as with a check, there are certain things you have to include for it to be valid.

Money orders can look different, depending on where you buy them. Regardless of where you purchase a money order, you'll typically need to fill in the following to complete it:

Payee name
Payee's address
Date of purchase
Dollar amount you're paying
Your name and address
Reason for the payment

Assuming all the information is filled out correctly, the person you're sending the money order to should then be able to sign the back and either deposit it into their bank account or cash it the way they would a regular check.

How to Fill Out a Money Order Correctly

Filling out a money order is as simple as plugging in the details mentioned above. The date and dollar amount should be automatically filled in for you when purchasing the money order; the rest you'll need to add yourself.

Following these steps can help to ensure that your money order is properly completed before sending it off to the payee.

1. Fill In the Payee's Name

The payee is the party that receives the money you're sending via money order. This could be a person, if you're making a cash payment to an individual. Or it could be the name of a business, if you're using the money order to pay a bill.

The payee's or recipient's name should go in the field marked "Pay to the Order of" or "Pay to" on your money order. Write their name clearly and in ink so that it can't be altered later if the money order is lost or stolen.

Filling the payee field out first is important because, until that's filled in, anyone could write their name on the money order and cash it.

2. Add the Payee's Address

Below the space for the payee's name, you should see another field for the payee's address. This is where you'll add the recipient's address information.

If the payee is a person, you may put their home address. If you're using a money order to make a payment to a business, you'll put the business address here.

Again, it's important to write this information clearly and in ink. Double-check it to make sure you're writing the street number and street name correctly.

ANNOTATED BY FORBES ADVISOR These sample images are provided for educational purposes only.

3. Fill In the Fields for Purchaser Information

As the purchaser or person who buys the money order, there are a couple of fields where you'll add your information.

First, you'll fill in your name. This spot may be marked "From" or "Purchaser" on the money order, depending on where you purchase it.

Next, you'll write down your address. This typically goes underneath your name, if this information is required.

4. Complete the Memo Line

Somewhere on your money order, you may see a "Memo" field. This is where you'll write the purpose of the money order.

For example, say you're using a money order to purchase a used car from a private seller. You could write a note in the memo line specifying that that's what the money is being used for.

Or, if you're paying a bill, you could mention that in the memo line. You'll also want to include the account number for the bill you're paying here.

5. Finish the Money Order by Signing It

Somewhere on the money order, you should see a "Signature" field. This is where you'll want to add your signature once you've filled out the rest of the money order.

This final step before you can send it off to the recipient is not required for USPS postal money orders. (Indicator on image above shows where such signature field may appear on other money orders.)

You may also see a space for a signature on the back of the money order, but that's not for you. That's where the payee signs the money order once they've received it.

What to Do After Filling Out a Money Order

After you've filled out all the necessary fields on the money order, read through it again to be sure all the information is correct. If you see that you've made a mistake, don't try to correct it yourself.

Instead, show the error to the person or business you're buying the money order from. Depending on their policy, they may be able to correct it for you. Or you might have to cancel the money order if you've already paid for it and purchase a new one.

If you haven't paid for your money order yet, you'd need to do that first before you can send it. Typically, you need to have cash or a debit card to pay for money orders. But some money order issuers will allow you to pay with a credit card.

Aside from the face value of the money order, you'll also have to pay whatever fees the issuer charges, which can range from under a dollar to $5, depending on where you purchase the money order.

Once you've paid, hold on to your receipt. This receipt should include a tracking number that you can use to track the money order and see when it's cashed.

Your receipt will also come in handy if you later need to cancel or replace a money order because it's lost or stolen. Without the original receipt, you may have a harder time getting your money back if a money order comes up missing.

Money Order Mistakes to Avoid

Filling out a money order shouldn't be a complicated process, if you know what information is needed and where it should go. But as you complete a money order, take care to avoid these common mistakes:

Misspelling the payee or recipient's name
Writing the wrong payee or recipient address
Leaving the recipient field blank
Writing your name or address incorrectly
Not including an account number in the memo line (if you're using the money order to pay a bill)
Forgetting to sign the money order
Losing track of your receipt

Another mistake to avoid is not comparing money order purchase fees before you buy one. Although money orders typically only cost a few dollars, some issuers charge higher fees than others.

You should also review a money order issuer's policies on canceling or replacing a lost or stolen money order. Ideally, losing a money order or having it stolen isn't something you have to worry about. But if either scenario happens, it's helpful to know beforehand what you'll need to do to resolve the situation and get the money back.

Money Order Alternatives: Other Ways to Pay

A money order can be a safe and secure way to send money, but it's not the only way to make payments to individuals or businesses.

For instance, you could always choose to pay cash. But, while paying cash may be an obvious choice, it's not always a realistic one. And paying cash doesn't create a paper trail the way paying with a money order does.

If you're interested in payment methods other than money orders, and you have a bank account, you could make payments via:

ACH transfer
Wire transfer
Personal check
Cashier's check
Certified check

Each of these options provides a secure way to make payments. The biggest differences between them lie in the cost and speed.

An ACH transfer lets you transfer money from one bank account to another electronically. For example, if you need to pay your mortgage, you could use an ACH transfer from your bank.

ACH transfers are free, but they can take a few business days to process. A wire transfer, on the other hand, can be completed in just a few hours. The trade-off for that convenience, however, usually means paying a fee to your bank.

Cashier's checks and certified checks are two forms of official checks you can secure at a bank using your bank account. A cashier's check is drawn on the bank's account, while a certified check is drawn directly from your account. But either one can be used in place of a regular personal check, though your bank may charge a small fee for issuing one.

Other payment options include using a person-to-person payment app or a prepaid debit card. Person-to-person payment apps let you pay bills and send money from your bank account without having to write checks. A prepaid debit card enables you to load money onto the card, which you can then use to pay bills. You might consider that option if you don't have a traditional bank account.

Keep in mind that opening a bank account can be a helpful and convenient way to manage your money and make payments.