Money orders.

Money order ARAIK are mainly US, it is like a postal order, made out to cash, no clearing time,as you must buy them with Cash.

Usually called Banker's Draft, but the word Money Order is used as well. Basically it's a cheque drawn by the bank made payable to a third party. It can be in sterling, or in any of the major currencies (vary with banks). You pay a commission of around 10-20, and if in a foreign currency, the exchange rates used incorporate a few percentage handling charge as well. Also for foreign currency draft, it is usually made out in the stationery of a bank with whom they have an agreement in the country in question. The recipient simply banks the draft like normal cheque and usually the full face amount is credited to their account (less any charge they normally pay for paying-in).

Alec

A money order (postal order in the UK, formerly also available as a postal note in the USA) was the traditional way of sending small retail payments. In the USA and Canada, all post offices sell postal money orders in local currency and in Canada also in US dollars and UK pounds; in the USA one can buy an international money order payable anywhere. These used to be labelled in foreign currency but are now solely labelled in US dollars and encashed at current buying rates by the foreign postal or banking correspondent. Supermarkets and other stores in the US sell proprietary money orders. American Express also sells them.

A bankers draft is like a cashier's check in the USA (which is distinct from a teller's check in that payment may not be countermanded, and if lost there is a waiting period until it is too stale to encash). In the UK, bankers drafts also take the place of certified checks, which are a facial acceptance by the bank and a guarantee of payment (JPMorgan Chase now issues cashiers checks instead of certifying their customers' checks).

In many countries other than the US, the UK and Canada, post offices have giro services that are very extensive, and money orders are redundant because you can pay your bill directly at the post office without fee. In the UK giros are privatised and expensive.

UK postal orders:

Doz anyone know the answer?

John Taylor said on 30.04.04:

How about the three people who answered the first time you asked?

Chris