What is a Money Order?

Wise Geek writes that a money order is an instrument that orders a sum of money to be paid to another person. The buyer transacts business in a post office, grocery store or convenience store. He or she pays for the order along with a fee to the establishment selling it, and sends the order to the person he wants to pay. Because the money order must be paid for in full at the time of purchase, the payee is guaranteed the money will be paid to him.

The article explains the benefits of postal money order. It also provides instructions regarding the procedures involved and information about direct service.

What is the Benefit of a Money Order?

A money order is simple, safe and convenient. It is guaranteed by the Canada Post. It is a convenient alternative to cash or cheque when you need to send certified money for payment of utilities, financial or retail purchase. The service guarantee offers free replacement of lost or destroyed money orders. Canadian, U.S. and certain international postal money orders can be encashed at banking facilities as well as post offices. Some financial institutions charge a fee for cashing foreign postal money orders. Postal Money Orders can be purchased at virtually every Post Office in Canadian dollars and U.S. dollars. The maximum allowed value of a single postal money order is $999.99 Canadian and U.S. dollars. The cost of purchasing a postal money order varies according to the end destination.

What are the Procedures Involved?

Customers, who want to purchase a money order, are required to fill up a form and provide the names of the sender, pay-to-type and pay-to-names at the time of purchase. A legitimate government-issued photo ID is required for all money orders of $3,000CDN or more including applicable fees and exchange. Customers may acquire additional money orders when the desired amount exceeds the maximum amount allowed. A separate fee applies to each order. When purchasing Canadian or US currency money order, the customer must pay the applicable fees in Canadian currency. Canada Post will purchase US currency from customers using the Canada Post exchange buying rate. A fee is charged for each Canada Post money order issued in addition to the face amount. The only acceptable methods of payment are cash or debit card

What is a Direct Service?

The Direct Service allows a Customer to purchase postal money order and send it directly to the payee in Canada or certain foreign destinations. The money order is redeemed at its face value in the issued currency. The Customer can either mail it to the destination or deliver it himself. A money order issued in Canada may be exchanged in Canada without charges while those payable to business organizations can be cashed in financial institutions. Money orders can be cashed by the payer or payee. They are required to provide legitimate identification related to money order transactions. Customers who want to find out regarding the status of their money order can always inquire from the Money Order Verification Service. For refunds, the monitoring period is 20 days from the date of purchase of the original Canadian currency money order.

The Value of Money Orders

The money order has immense value and it follows a very simple process. The postal service’s personnel are very willing to provide assistance in the sending and claiming of the postal money order.

References

wisegeek.com
canadapost.ca
canadapost.ca