Money order
An instruction by a customer to a bank (banker's order) or building society to pay a specified amount of money on a specified date or dates to a specified payee. Standing orders are widely used for such regular payments as insurance premiums, subscriptions, etc. [Law, p. 225]. The Money Order system was established by a private firm in Great Britain in 1792 and was expensive and unsuccessful. In about 1836, it was sold to another private firm which lowered the fees and significantly increased the popularity and usage of the system. The GPO noted the success and profitability and took over the system in 1838. Fees were reduced further, and usage increased further, making the MO system reasonably profitable. The only drawback was the need to send advice to the paying Post Office before payment could be tendered to the order recipient. And that drawback was probably the primary incentive for establishing the Postal Order System on 1st January 1881 [Post Office Money Order: A. Scott of Bootle to Peter Hodgson Esq, Whitehaven, 1841]. The money order is a document similar to U.S. currency that can be purchased in varying amounts and placed in the mail anywhere in the U.S. International postal money orders may be sent by Priority Mail Express International® service, Priority Mail International® service, First-Class Mail International® service, or First-Class Package International Service® [Money Orders]. The money order is printed out with the dollar amount of its value only. All other items are left blank. A purchased money order is like a signed check; it is the responsibility of the purchaser to enter to who the money order is payable (otherwise, anyone can cash it). Money orders must be made payable to a single identifiable party, the purchaser [Money Orders].
Law, J. (2018). A Dictionary of Finance and Banking (6 ed.) Oxford: Oxford University Press.
The Victorian Web. (2010). Post Office Money Order: A. Scott of Bootle to Peter Hodgson Esq, Whitehaven, 1841. Retrieved from: www.victorianweb.org.
USPS. (2023). Money Orders. Retrieved from: www.usps.com.