What is a Money Order?

You need to send money from your home state of Texas to a business in Ohio and you have no checking account. The money order was created for just this purpose.The money order serves to replace cash as a form of payment, while providing the convenience of a check. People can go to a vendor, pay cash, and get a slip of paper back allowing them to designate who the money order goes to which can then be cashed.

Until recently, money orders had to be obtained in person. The Internet has now taken over the money order business with virtual retailers at every turn. Beware - not all online money orders are legitimate.

It is important to only purchase money orders from trusted companies. Online money orders are created after the billing information is given. This means, the company can send a fake money order or no money order at all and keep the money online to close up shop and reopen under another name. Some of the sketchy online money order companies open today include iKobo and Payko. These companies both have complaints with the BBB that have been unresolved.

Western Union is a highly trusted website when it comes to sending money to anyone in the world. Western Union requires the money to be picked up at another Western Union location for wire transfers. The Western Union money order can also be sent directly to a bank account without the need for tons of paperwork and information. The money is simply moved from one account to another. The instant money gram is the quickest money order option available.

Along the same lines as Western Union, MoneyGram sends money all over the world. The money will also need to be picked up at a MoneyGram location. The eMoney program from MoneyGram offers three types of money orders - The Same Day Order, the Economy Order (3 to 5 business days) and the Bill Payment Order.

There are other sources of sending online money orders such as Orionpay. Consumers should beware when using a smaller company like this because all credit card and / or checking information is provided via the money order request form. There have been a few complaints about Orionpay but the information available through the Better Business Bureau reports all but one complaint resolved.