How to Sign a Money Order as Purchaser or Payee

A money order serves as a secure, prepaid payment method, functioning much like a certified check. It allows individuals to send money without using cash or revealing sensitive bank account details. The security and validity of a money order largely depend on its correct completion, including proper signing by both the purchaser and the payee.

Purchaser’s Signature on a Money Order

As the purchaser, your signature is important. Locate the designated line, often labeled “Purchaser’s Signature,” “From,” “Sender,” or “Drawer,” typically found on the front of the money order. You should sign this section after filling in the payee’s name and your address. Filling in the payee’s name right away helps prevent fraud, as an unsigned money order is similar to carrying cash and could be claimed by anyone if lost.

Provide the recipient’s name in the “Pay to the Order Of” section and your full name and current address in the purchaser section. Do not sign the back of the money order, as that area is reserved for the recipient’s endorsement. Some money orders also offer a memo line where you can include a brief note, such as an account number if you are paying a bill, which can aid in record-keeping.

Payee’s Signature on a Money Order

For the payee, signing the money order is the final step before cashing or depositing it. The payee’s signature belongs on the back of the money order, typically on a line marked “Payee’s Signature” or “Endorsement.” This endorsement functions similarly to endorsing a personal check.

The payee should sign the money order only when ready to convert it into funds. Delaying the endorsement until the point of deposit or cashing adds a layer of security. If the money order were to be lost or stolen before being endorsed, it would be more difficult for an unauthorized individual to cash it. The payee will need to present valid identification, such as a driver’s license, to cash or deposit the money order.

General Signing Guidelines

To ensure validity and security, both purchasers and payees should follow these signing guidelines. Always use a legible signature that matches your official identification. Sign the money order using permanent ink, as this prevents alterations or erasures that could invalidate the payment.

Avoid making any corrections or alterations on the money order once it has been filled out, as this could lead to it being rejected. Both the purchaser and the payee should retain the money order receipt. It contains important tracking information and serves as proof of the transaction. This receipt can be important for tracking the money order’s status or for requesting a refund or replacement.