![]() Money orders remain a trusted financial instrument. Some financial service companies such as banks and credit unions may not charge for money orders to their clients. In the United States, money orders are typically sold by third parties such as the United States Postal Service, grocery stores, and convenience stores. Money orders are the most economical way of sending money in India for small amounts.Īn international money order issued in Chicago for encashment in Germany It is commonly used for transferring funds to a payee who is in a remote, rural area, where banks may not be conveniently accessible or where many people may not use a bank account at all. This is more reliable and safer than sending cash in the mail. A receipt from the payee is collected and delivered back to the payer at his address. The amount is then delivered as cash to the payee after a few days by a postal employee, at the address specified by the payer. A payer who wants to send money to a payee pays the amount and a small commission at a post office and receives a receipt for the same. In India, a money order is a service provided by the Indian Postal Service. Because of provisions within the USA PATRIOT Act and the Bank Secrecy Act, money orders have far more regulatory processing requirements than personal cheques, cashier's cheques, or certified cheques. Money orders have limited acceptance in the insurance and brokerage industry because of concerns over money laundering. The amount is printed by machine or checkwriter on both portions, and similar documentation, either as a third hard copy or in electronic form and retained at the issuer and agent locations. Money orders typically consist of two portions: the negotiable cheque for remittance to the payee (the receiver), and a receipt or stub that the customer retains for his/her records. The main difference is that money orders are usually limited in maximum face value to some specified figure (for example, the United States Postal Service limits domestic postal money orders to US$1,000.00 as of August 2017 ) while certified cheques are not. In this way it is similar to a certified cheque. A money order is purchased for the amount desired.
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