a committed way of payment since it is necessary that the finances are prepaid for the evinced amount. Merchandisers, in all probabilities, may receive the surplus protection of money order.

Money orders are borne by light-sized letters and postcards. The purchase of money order is basically done through cash or debit card. They dont carry any surcharge and are transmitted to locations where such a transmittance is present. Purchase of money order is carried out for the demanded sum. Here, it is alike an endorsed check. The primary difference between money orders and qualified checks is that money orders are normally bounded in par value to some specialized amount. Money orders contain two parts viz., transferrable check that is remitted to the lender, and an acknowledgment that the client holds back. The specific sum is impressed by a simple machine or checkwriter on both sides, and a like certification is held back at the institution and agent emplacements.

Money orders possess the advantage of being pre-paid and hence doesnt possess the disadvantage of bouncing. The only reasonable chance for bouncing are:

The payment is discontinued by the individual dealing with the money order

The issuing company becomes insolvent

The money order is fallacious or fake

Money orders are mostly regarded dependable for payments from companies unidentified by the payee. This is quite different from a personal check drawn on the individual's bank account.

There has been a substantial increment in observance of fake postal money orders. In most of the cases, such a forgery will be transmited to an ignorant person who is notified to deposit the amount and restore some of the finances. Since money orders are borne through the

postal service rather than the usual check clearing system, they frequently take a tenacious time period to rebound than an ordinary check.

At time of bouncing, the money order is borne down on the person who bears the adversity of the situation. This individual would have already directed the finance back, for which he or she must take ownership of the loss. Due to this reason, banks are now implementing greater protection to ingressing money orders. They are also showing indisposition in accepting money orders.

It is prudential to make payment for money orders at a post office. Here, the genuineness of the particular is ascertained straightaway. In case the item is held beneficial, the bearer is exonerated from further obligation. The basic merit of transmitting amount through money order is that the individual receives his/her money at the comfort of his home itself.

If money orders are spoiled in the mail, they may virtually become valueless. This can be attributed to the fact that while trying to pay off the money order, some institutions will not make payment, nor bring out a new one in case the routing number on the downside of the money order is unable to be processed by the processing machine. During this situation, a claim must normally be registered with the publishing bank or establishment. The irony in this case is that a non-repayable service amount is charged. In certain cases, this amount exceeds the amount of the money order itself. Later, it takes a month or two to work on the claim. It may also happen that the claim is disapproved.

Though the act of transmitting cash via mail is mostly not welcome, it possesses the advantage of paying off the total value in case of impairment. This can be attributed to the reason that most banks will interchange damaged bank notes as long as the bill is at least more than fifty percent whole.

The Indian Postal Service is the supplier of Money Order in India. The process is as follows:

The drawee (the individual or bank) pays the specific sum and a modest commission at the post office

The drawee obtains a receipt for the sum paid.

Subsequently, the sum is rendered as cash to the recipient at the address fixed by the drawee.

A receipt from the recipient is accumulated and surrendered back to the drawee at the specific address.

Money order is normally utilized for channelizing finances to a recipient who is in a distant, rural area. It may happen that the people here doesn't make use of the services of a bank. One can always rely on money orders for transmitting a lesser sum.

The difference between an international money order and a normal money order is that the former is utilized to carry out payment in the overseas. Here, an individual can very well pay a vendor for goods or services with the help of a money order. Generally, international money orders are published by a purchaser's bank. The seller buys the money order in the preferred currency mode. International money orders possess the advantage of safety since they require different types of identity. This includes a signature and a kind of photo identification. Certain countries invariably demand that the money order is made of pink paper and contains the words postal money order.

In case of a money order to the recipient not being effectuated, the order will turn out to be void. Here, its amount will be accredited to the Central Government. Consequently, if the recipient applies for payment, the Postal Account Officer takes charge of paying the sum of the order. This is restricted to the case that the application is formed before the termination of one year from the date of issuance of the master order.

The Travelers Express Money Orders have now become MoneyGram Money Orders. They are still the secure, favorable alternate to bank check but doesnt possess stop payments.

It should be noted that the Post Office doesn't hold province for the incorrect payment of a money order due to the wrong details provided by the remitter. In case of money order being collectable from a post office in rural area, the name of the recipient's father or the name of the spouse (for women payee) should be suggested. It should be noted that the name of only one individual is entered as recipient. An exception is business firms or institutions where the common identification is given. The name of the recipient may also be changed under certain instances. The payment can also be stopped if the remitter intends to do so. The Post Office would not take province for remitter's incapability to stop payment.

Corporate Money Order is a service specifically organized to transmit great amount of cash across the country in a brief span of time. The deposit should be done through pay order/cheque and the credit of designated center will be through cheque. Finally, it should also be noted that money orders are speedily being substituted by electronic transfer services.