A money order is a secure and safe solution when you need to make a financial transaction but cash, cheque and electronic transfers such as NEFT don’t fit the bill. A money order is basically a paper cheque that can’t bounce as it’s prepaid.

When should you use the money order?

Money orders could be the last resort in situations where paying with cash, cheque or digital payment apps isn’t suitable. Money orders are endorsed directly to individuals by name just like a cheque. They require endorsement and identification such as aadhar card to retrieve them. This makes money order much more secure than cash, securing the money in case of loss or theft.

The receiver accepts a personal cheque believing the sender’s bank account has enough funds to cover the amount. If not, the payment bounces and the recipient is left of no money, on top of that required to pay a bank fee.

Beware of Money Order Scams:

Money orders are vulnerable to theft and fraud and have become a common fraud vehicle for scammers. In response, the money order design has grown to include a multitude of security and anti-counterfeiting properties. From watermarks to rainbow ink patters. Always look for the signs that can tell you whether a money order is genuine or not.


Some banks don’t allow electronic deposits of money orders, although you may be used to making bank transactions with your smartphone. Instead, they require you to visit a branch.



Ashutosh Gupta

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