What If I Sign My Money Order In The Wrong Line?

Download Article

Download Commodity

A coin order is a negotiable musical instrument. Information technology is a promise to pay a specific sum of money to a specific person. A payor (or drawer) makes a payment to a payee. The purchaser of a money club needs to follow some precise steps to consummate the document correctly. The steps ensure that the payment gets to the correct political party.

ane
Notice a visitor that provides money orders. Well-nigh banks issue money orders to their account holders. They may also sell money orders to non-account holders who are willing to pay cash.^[one]
- If you purchase a money order from a banking concern and don't accept an account there, they will probably charge you an expensive fee.
- The United Land Post (USPS) sells money orders. You tin can visit a post function branch to go a money lodge form.
- MoneyGram and Western Union are 2 other companies that provide money orders. You tin find locations online. In some cases, your local grocery store will provide access to money orders through these two companies.
two
Transfer a negotiable musical instrument. When you complete a money order and requite it to the payee, you are transferring a negotiable musical instrument. In this case, the term "negotiable" means "transferable".^[2]
- Your money club has a line that says "pay to the order of". That language is the same type of instruction y'all run across on a check. If your money order says "pay to", it means the same thing.
- Consideration is an important term for negotiable instruments. If each party gives consideration, each political party is relying on the other. You may purchase a money order to pay for a production or service, for instance. If that's the case, y'all are paying an amount and expecting something in return. Both parties (the payor and the payee) are providing consideration.
Advertizement

one
Complete the information on your coin order. Put the recipient's name on the "pay to" or "pay to the society of" line. Look for the department of the money order that asks for the purchaser or drawer's information. Include your name and address as the payor. The purchaser or drawer is likewise the payor.^[iii]
- When you purchase the money order, fill up in the name of the person you are paying immediately. If y'all lose the coin club, someone else can write their name in as the payee and cash the money order.
- The "pay to" section may besides ask you to write in the recipient'south address.
- Fill in the receipt section on the money guild. Detach it and go on for your records. Some coin orders accept a carbon re-create backside the original. Other money orders have a portion of the original form that you tin can detach and proceed.
2
Sign the original money guild and file your copy. Wait for the surface area on the coin order that requires the payor's signature. Your signature authorizes the financial institution to pay your money order funds to the payee.
- The payor is as well referred to as the purchaser or the drawer. Expect for whatsoever of these iii terms in the required signature section on the money order.
- The money order will include a tracking number. You should be able to use the financial institution's website or toll free number of track the condition of your money order. You may want to confirm when the money order is cashed.
- If the payee loses the money social club, you tin can use the tracking number to cancel the payment and supplant the money order. Y'all will pay a fee to replace the lost money social club.
3
Render the money order and substitution information technology for a new one, if you make out the coin order to the wrong person. If y'all make some other sort of fault when filling out the money order, have information technology dorsum to the financial institution. You can supplant the money order or ask for a refund. You may pay fees for these services.
- Always use a pen when filling out money orders. By using a pen, the information is more difficult to alter.
- Be sure yous gene in the cost of the coin lodge in your budget.
- Don't lose the money social club: treat it only like cash. The process of getting a money order cancelled or replaced is complex and expensive.
Advertizing

Add New Question

Question

On the "Purchaser's Address" line, if I run out of room, may I continue in the space underneath that line?

Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of feel in business and finance, including as a Vice President for Blueish Cross Blue Shield of Texas. He has a BBA in Industrial Direction from the Academy of Texas at Austin.

Concern Advisor

Expert Respond
Question

What happens if the purchaser did not sign the purchaser signature section?

Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of feel in business and finance, including as a Vice President for Blue Cantankerous Bluish Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin.

Business organization Advisor

Expert Reply

Support wikiHow by unlocking this adept answer.

Legally, a purchaser'due south signature is not required for a coin order to be negotiable since information technology has been already paid for in greenbacks. The named payee must sign in gild to receive the greenbacks. However, some sellers may require the signatures of a purchaser as an assent to the conditions affecting the liability of the money order issuer.

Ask a Question

200 characters left

Include your email accost to get a message when this question is answered.

Submit

Advertising

About This Article

Commodity Summary X

To fill out a money order that asks for a purchaser signature, get-go put the recipient's proper noun on the "pay to" or the "pay to the social club of" line. Then, await for the section that asks for the purchaser information and include your proper noun and address as the payor. Later that, sign where the money gild requires the payor's signature to authorize the financial institution to pay your coin gild funds. File the receipt of the money order and so y'all can nowadays it if the money order is lost or if information technology'south made out to the incorrect person. To learn how to find a company that provides money orders, keep reading!

Did this summary assist yous?

Thanks to all authors for creating a page that has been read 556,258 times.