For presentation
Money order
R.A. 7354, an Act Creating the Philippine Postal Corporation under Article II, Section 6, (d), states
that Philippine Postal Corporation has the power to issue money orders or checks for transmittal through
the mails and authorize the issuance of a replacement in cases of lost, stolen, stale, or destroyed money
order or check.
Money order refers to the instrument issued generally by the post office of a country ordering sum of
money to be paid to the payee indicated on the instrument itself.
Money orders are purchased from the post office and other business enterprises like Western
Union, pawnshops, money changers, grocery stores, or even convenience stores.
Who uses money orders?
Money orders are often used by individuals who do not have checking accounts and want to pay their
bills through mail.
Advantages
Doesn't include sensitive information
Recipient can cash it at their local bank or credit union
Can be deposited into a bank account for free
Can be issued in one country and cashed in another
Disadvantages
Can be harder to track than a personal check
Buying and cashing the money order can incur a fee
Funds could be delayed, depending on where it's cashed
Can be fraudulent
For module
Money order
R.A. 7354, an Act Creating the Philippine Postal Corporation under Article II, Section 6, (d), states
that Philippine Postal Corporation has the power to issue money orders or checks for transmittal through
the mails and authorize the issuance of a replacement in cases of lost, stolen, stale, or destroyed money
order or check.
Money order refers to the instrument issued generally by the post office of a country ordering sum of
money to be paid to the payee indicated on the instrument itself.
Money orders are purchased from the post office and other business enterprises like Western Union,
pawnshops, money changers, grocery stores, or even convenience stores. Purchasers pay a fee to the
seller of the money order. Therefore, if you are buying a P500-money order, you give the seller P500 plus
the fee the seller charges which represents the earning. The name of the payee and the amount are
shown on the face of the money order including the name of the purchaser.
Money orders are often used by individuals who do not have checking accounts and want to pay
their bills through mail. Money itself is not advisable to be mailed and not practical if it involves centavo
amounts. There is, however, a limit on the amount of money order available for purchase, which in the
US, is at $1,000.
Advantages
Doesn't include sensitive information: In some situations, paying with a money order can be
safer than paying with a personal check. That's because personal checks include the account
holder's routing number and bank account number printed on the bottom—information can be
stolen and used to create and sign fraudulent checks. In contrast, money orders don't include
personal information about the purchaser.
Recipient can cash it at their local bank or credit union: The person who receives a money order
doesn't necessarily have to go to the same place that sold the money order or the sender's bank.
They can cash it at their local bank or credit union, though this could mean they have to wait to
get the cash.
Can be deposited into a bank account for free: A recipient can deposit a money order into a
bank account, much as you would do a check. Depositing money orders is a good option for
recipients concerned about the fees charged to cash the certificates at other locations.
Can be issued in one country and cashed in another: Money orders can and often are used to
send money outside the country. An issuer with multiple branches in different countries can
issue a money order in one country that can be cashed in another country. International money
orders thus provide an inexpensive and swift way to send money across the border.
Disadvantages
Can be harder to track than a personal check: To track a money order, the sender must fill out
tracking forms and pay an additional fee to learn whether the money order has been cashed.
The entire process for researching the status of a money order can take weeks. However, the
Philippines Postal Service, also known as USPS, offers an online money order inquiry service that
allows buyers to input a money order number and get an update on its status.
Buying and cashing the money order can incur a fee: When you buy a money order you may
need to pay a small fee, and the same goes for cashing one if you cash it somewhere else
besides your own bank or credit union. Depositing it into a bank account or cashing it at the
issuer's office are good options for bypassing fees for cashing a money order.
Funds could be delayed, depending on where it's cashed: Just note that if you cash a money
order at your local financial institution and it's not a branch of the issuer, you might not be able
to get all of the money right away. It depends on your bank's funds availability policy.3
Can be fraudulent: Some unscrupulous people create fake money orders. Be wary about
receiving one from someone you don't know, and don't spend the cash from money orders you
deposit in the bank until you know the bank was able to cash them.
Reference:
Investopedia. (2023). How to Fill out a Money Order: Step by Step
https://www.investopedia.com/how-to-fill-out-a-money-order-step-by-step 4589636#:~:text=Money
%20orders%20are%20easy%20to,to%20fill%20it%20out%20correctly.
