An electronic money order is method of transferring money between banks and people. This financial product is available within most postal service offices and is similar to a certified check. A patron can purchase a money order and transfer the money to a destination bank or individual. The money is typically mailed to the destination merchant at the time of the transaction.
The United States Postal Service provides guaranteed electronic money order certificates. These bills contain special engravings and watermarks designed to make the documents harder to counterfeit. The postal service identifies each certificate with a unique number. These money orders are only available after full payment is complete.
The electronic money order has the same counterfeit risks as any paper commerce document. Counterfeit rings use artists to create fraudulent paper documents as a method of stealing money from individuals and organizations. Many criminals have successfully created fraudulent money orders and placed these into the global economy.
There are several advanced features available for money order customers. The electronic money order can be managed and created with a personal computer and printer. This requires an individual to create an account where he will transfer money into holding account to be used for future money orders. When he wants to create a money order, funds are automatically withdrawn from his account when the paper document is created.
Money orders are typically mailed emailed or hand delivered to individuals or businesses. These paper documents are similar to certified checks because the money order requires full payment before it is created. It is considered a check that has been verified through a funds transfer.
Over the last decade, many new types of currency exchange devices have become available. These modern electronic methods have made the use of checks and an electronic money order less attractive to most consumers. With the popularity of debit cards and third-party funds management systems, the exchanging of paper bills is becoming bulky and cumbersome.
Most modern financial institutions have automated the bill-paying process with the Internet. This has enabled customers a means of bill payment that provides quick payment, without the hassle of mailing checks or money. Online bill payment is an example of modernized financial management.
Money orders are also used by individuals who are not comfortable with bank accounts and financial institutions. These individuals will use money orders as a method of paying monthly household bills. Using a money order provides an audit trail for bill payment that is unavailable when using cash.