What Does Sender/Drawer Mean on a Money Order?
Unlock the meaning of sender and drawer on a money order. Understand key roles and ensure your money order is correctly completed.
Money orders serve as a secure and reliable alternative to cash or personal checks for various payments. This article clarifies the terms “sender” and “drawer” as they relate to money orders, helping individuals understand their roles.
Understanding Sender and Drawer
The “sender” on a money order refers to the individual or entity who purchases the money order. This party is also commonly identified as the “purchaser” or “remitter” on the document. The sender provides the funds and completes their personal information on the form. Their details, including name and address, help the recipient identify the payment source.
The term “drawer” may appear on a money order form, often near the purchaser’s signature. In this context, the individual buying the money order is the “drawer” as they direct the payment. However, in broader financial terms, the “drawer” is the entity that issues and guarantees the payment. For a money order, this is the issuing institution, such as a bank or post office, which pre-funds the money order, ensuring funds are available for the payee.
Other Essential Parties
The “payee” is the individual or organization designated to receive the funds from the money order. Their name must be written on the money order for proper delivery and cashing. Only the named payee can legally cash or deposit the money order.
The “issuer” is the financial institution or authorized agent that sells and guarantees the money order. This entity, such as a postal service or bank, collects payment from the sender and assumes responsibility for the money order’s value. The issuer’s backing ensures the money order cannot “bounce” like a personal check.
Completing Your Money Order
Filling out a money order requires attention to detail to ensure the payment reaches the intended recipient. Locate the field labeled for the recipient, often marked “Pay to the Order Of” or “Pay To.” Carefully write the full name of the person or entity receiving the funds. Complete this section immediately after purchasing to prevent unauthorized cashing if the document is lost.
Next, find the section for the sender’s information, which may be labeled “From,” “Purchaser,” “Remitter,” or “Sender.” Print your full name and current address here. A memo line may be available for an account number or brief payment description.
Finally, sign the money order in the designated area for the purchaser’s signature, often marked “Purchaser’s Signature” or “Drawer.” Retain the receipt or stub provided by the issuer. It contains a tracking number to verify if the money order has been cashed or to trace it if lost or stolen. This receipt serves as proof of purchase for inquiries or refunds.