United States postal money orders are a financial instrument issued by the post office.Â They are similar to a check in that the money order is made out to a specific person or party for a specific amount of money.Continue Reading
They are typically used as a secure way to pay for goods or services. The purchaser of the money order pays the amount in cash or traveler's check to the post office, which then issues the order. The amount paid includes the face value of the money order plus a small sliding scale fee that depends on the amount and nature of the recipient.
Postal money orders differ from checks in several ways.
Because of their security, postal money orders are often the preferred method when payments are sent by mail or courier. As such, they are also increasingly subject to fraud and counterfeit postal orders have been used in Internet scams.Learn more about Postal Services