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Most people know that they can use a money order to pay for a bill. What most people don’t know is that they can also cash it.
If you need to cash a money order, you will have to go to the bank where the money order was issued and ask them to cash it for you. However, you can also do this in other locations, such as a credit union or a specific cash-checking place. They’re a great way to ensure any large payments can go through safely. Read this article to understand all you need to know about cashing money orders at the bank.
What is a Money Order?
A money order is a way of paying for something by sending money in the form of a cheque or bank draft. These are sold by the post office, and can be bought from any shop that sells them. Money orders are often used for things such as PayPal payments and international money transfers.
They are also used for personal payments. They are used for payment of debts such as rent, council tax, utility bills, school fees and even hospital bills. Money orders can also be used to buy items from a shop, but this is more difficult than it sounds because some shops do not accept them. Essentially, by using money orders, you make sure the check won’t bounce because it is prepaid.
How to Cash a Money Order at the Bank
The easiest way to cash a money order is to go to the bank where the money order was issued. The specific details on what to do, however, are as follows:
Endorse the money order
The first thing you need to do is to make sure that the money order is endorsed by the person who sent it. This means that you need to fill in the endorsement section on the back of the money order. It involves signing the back of the money order and writing the details of the person who sent it. It’s important that the names of the payee and the signee are the same.
Prove your identity
Once you have endorsed the money order, you need to make sure that you can prove your identity. This means that you need to bring a valid form of identification such as a passport or driving license. You can also prove your identity by showing the cashier some other document such as a utility bill.
Complete any extra fees
Once you have provided your identity, you need to complete any extra fees. Depending on where you are cashing the money order, there may be a fee for this. These are also often included in the money order itself.
Once you have completed all of these steps, you can go to the cashier and have them process the money order. You will then receive the money in the form of a check or a bank draft.