How to read a moneygram money order?

• Fill in the recipient's name.
• Write your address in the purchaser section.
• Include your account number if you're paying a bill.
• Sign where it says "purchaser's signature."
• Keep your receipt.

This chapter prescribes the procedures to be followed by Federal Reserve banks and branches (FRBS) in handling paid U.S. Postal Money Orders. These procedures cover the responsibility of the United States Postal Service (USPS) to pay, reconcile and audit postal money orders. Treasury prescribes the method of processing the charges through Treasury's General Account.

These instructions are issued according to authority of the Secretary of the Treasury to prescribe regulations to FRBs in connection with their fiscal agency responsibilities under 12 U.S.C. 265 and 391.

All post offices sell paper money orders to the public. These money orders are paid at commercial banks and other depositaries of the Federal Reserve System and sent to FRBS. The FRBs will charge the account of USPS for the amount of the paid money orders and report these charges on the daily transcript of the U.S. Treasury. The FRBs then will send the money order documents to USPS. Upon receipt of the money order documents from the FRBS, USPS will reconcile and audit the documents. USPS will report all money order transactions on the Statement of .Transactions to the Deposit Reconciliation Branch (TFM 4-7095) at the end of each month.

Paper money orders are 3 1/4 inches high, 6 inches long, and are designed to meet American Bankers Association (ABA) check standards and characteristics, including MICR preprinting (Appendix No. 1.) The ABA routing number with the check digit in the transit field (0000-0020 or 000000204) is shown on each money order. The general format and the upper serial number is printed by the forms printer. The date, post office number, and the upper amount is entered by the postal clerk at time of issue. In the lower MICR line, the bank routing number and the on-us field (Money Order Serial Number) are entered by the forms printer. The "pay to" and "purchaser" information is entered by the postal customer who purchases the money order.

All FRBs are advised of the presence of the OCR Read Band, with a width of 9/16ths of an inch beginning 3/8ths of an inch from the top of each paper money order which is used by the USPS for processing paid money orders. FRBs are requested to refrain from writing, stamping, marking, endorsing, etc., in the area of the OCR Read Band. FRBs are further requested to avoid, if possible, any heavy endorsing on the reverse side of the money order in the area of the OCR Read Band.

There are a number of outstanding "punch card" postal money orders that were issued prior to the introduction of paper style postal money orders in the spring of 1973, which bear the ABA routing number 0000-01 19. These money orders have a commercial life of 20 years. Processing instructions for the "punch card" postal money orders are in II TFM 4-7070 of these instructions.

The terms used in this chapter are defined as follows:

7030.10 -MOD. This is the abbreviation of the Money Order Division of the USPS Postal Data Center at St. Louis, Missouri, which has accounting and auditing control over money orders.

7030.15 -Money Order. Unless otherwise qualified, this term means the Postal Money Order that has the ABA routing number 0000-0020 or 000000204 shown on the form.

7030.20 -Replacement Money Order. A money order issued by the USPS to replace another money order. It will contain a different serial number (starting with 99) but will not be subject to any special processing by the FRBS.

7030.25 -Fit Money Order. A money order that can be completely processed on high speed processing equipment.

7030.30 -Mutilated Money Order. A money order not physically fit for processing on high speed equipment. This does not include money orders bearing unreadable MICR characters in the on-us field.

7030.35 -Old Style Money Order. A card style money order bearing ABA routing number 0000-0119.

7030.40 -International Reissue Money Order (Appendix No. 1). This money order appears similar to the Domestic Money Order; however, the validation plate on the money order is preprinted, not imprinted, and no monetary limitation is shown on the face of the money order. These money orders are negotiable for a maximum of $400.00, as noted on the reverse of the document. All International Reissue Money Order serial numbers will begin with "89." Unlike domestic money orders, international money orders are valid for a period of only I year. The expiration date is printed on the face of the money order. If presented within the period of validity these money orders should be negotiated and processed in the same manner as domestic money orders.

7030.45 -Domestic-international (Semi-domestic) Money Orders (Appendix No. 1). These money orders are issued by 14 countries, with which the United States has agreements, and the money orders from these countries are accepted for payment in the United States. Appendix No. 1 gives a list of the 14 countries that issue the money orders.

7030.50 -International Postal Money Orders (Appendix No. 1). These money orders are similar to domestic and international reissue money orders. All international money order serial numbers begin with the number "88." The lower right-hand corner of these orders is annotated "Not negotiable in USA." Any international postal money orders deposited by a member bank should be returned to the presenting bank so that the bank may recover funds from the customer who presented it for payment.

7030.55 -Non-Negotiable International Money Orders (Appendix No. 1 ). These are foreign money orders, other than semi-domestic, and cannot be accepted for payment in the United States. These money orders, purchased in foreign countries and mailed to persons in the United States and cashed at local banks, should be charged back through banking channels to the original endorser. The bulk of the money orders is received from France, Germany, Australia, Great Britain, Belgium, and New Zealand.

7030.60 -Bank No. or FRB Code (Appendix No. 1 ). This term refers to the four digits of the FRB routing symbol. This number is to be used on various documents for charging or shipping of money orders to USPS.

7030.65 -Batch. This is a group of paid money orders placed under one control total (or subtotal) by the FRB. A separate USPS Batch Locator Control Document will precede the items in each batch. Normally, a batch of fit money orders will consist of not more than 500 items, and a batch of mutilated money orders will consist of not more than 200 items (II TFM 4-7075).

7030.70 -USPS Batch Locator Control Document (Appendix No. 1). The USPS Batch Locator Control Document is a preprinted document furnished by the USPS to the FRBS. The document is inserted at intervals of not more than 500 money orders by the FRB. It is sequentially numbered and each sequence should be maintained in the insertion of the document.

7030.75 -Batch Number. This is a 7-digit sequential number shown in the OCR and MICR read line of the USPS Batch Locator Control Document.

7030.80 -Reasonable Tolerance. This term is used when USPS verifies charges made by the FRBs for paid money orders as indicated on the PS Form 1175 "Domestic Money Orders- Recapitulation of Batch Totals," and finds a minor difference in the amount which the USPS will not require to be adjusted.

7030.85 -Box Label (Appendix No. 1). FRBs are to be advised that the front end of each box of money orders forwarded to the MOD will be labeled to show the FRB Code, transcript charge date, box number, and total number of boxes in the shipment.

The FRBs will prepare SF 5515, "Debit Voucher," for 8-digit accounting station code or agency location code (ALC) 18-00-0005 to charge postal money orders based on cash letters or other deposit documents received that have accompanying postal money order documents. After machine classification is made, in order to correct any amount undercharged for money orders made on the original charge of the SF 5515, another SF 5515 will be prepared and processed. If an overcharge is made on the original SF 5515, the FRB will process an SF 215 "Deposit Ticket" for the amount overcharged to ALC 18-00-0005. Appendix No. 1 provides instructions and the distribution of the SF's 5515 and 215. The net amount of all debit vouchers and deposit tickets reported to ALC 18-00-0005 must be shown on the FRBs Daily Balance Wire to BGFO on line 14-A. This amount is reconciled to the confirmed copies of the debit vouchers and deposit tickets received at MOD, St. Louis, Missouri.

PS Form 1901 "Advice of Classification for Postal Money Orders" is basically a reconciliation form prepared by the FRB. Certain data from the SF's 5515 or 215 (confirmed date, document, number, and amount) will be. shown under the block titled "Charge to ALC 18-00-0005." This amount must agree with the total for the block titled "Classification of Postal Money Orders" which reflects the description, code, number of items, and amount of the postal money orders being shipped. The money order documents will be shipped to MOD, St. Louis, Missouri. Adjustments of errors made on previous shipments will also be reported under the "Classification of Postal Money Orders" block and supported by completing the "Schedule of Adjustments Entered Under Code 003" shown at the bottom of the PS Form 1901 (Appendix No. 1). NO COPIES OF THE PS FORM 1901 WILL BE SENT TO TREASURY.

Each PS Form 1901 is accountable to USPS, therefore, if the FRB voids a PS Form 1901, send all copies to:

Postal Data Center Processing Control Division Attn: Accounting Section P.O. Box 14431 St. Louis, MO 63180

These voided copies should not be included with the shipment of money orders. If the PS Form 1901 is destroyed, Processing and Control Division, Accounting Section, should be advised in writing.

Batching and Listing Fit Money Orders. Paper money orders are MICR printed with the routing code (including a routing number of 0000-0020 or 000000204) and the serial number with check digit. The routing number is also preprinted in the upper right corner on the form, which is in the location and front as prescribed by the ABA. FRBs will process FIT money orders as follows:

7040.10 -Preparation of Recapitulation of Batch Totals. Prepare a PS Form 1175 (Appendix No. 1) or equivalent machine produced summary daily for the batches processed and listed on the paper tapes. Enter each batch number, item count, and total separately. The DAILY TOTAL line of the PS Form 1175 must equal codes 100 and 110 on the PS Form 1901. Submit a separate PS Form 1175 to support code 400 of "Dom. Intl" on the PS Form 1901.

7040.20 -Adjustments Between Amounts Charged and Money Orders Listed. The total amount of the PS Forms 1175 should agree with the amount classified on the PS Form 1901. If the total amount of the PS Form 1175 is larger than the amount shown on the PS Form 1901, prepare another SF 5515 for the NET AMOUNT OF THE DIFFERENCE and process for ALC 18-00-0005. Whenever the total amount of the PS Form 1175 is less, prepare an SF 215 for ALC 18-00-0005 and process for the NET AMOUNT OF THE DIFFERENCE. These documents will be functioned on the daily transcript and listed on the PS Form 1901.

7040.30 -Shipping Money Orders. Instructions for shipping money orders to MOD are as follows.

Postal Data Center Processing Control Division Attn: Accounting Section P.O. Box 14431 St. Louis, MO 63180

St. Louis Missouri 63182 MOD P.O. Box 14963 From: F.R.B. (City)

Shipment will be made to the MOD by registered mail using pouches with rotary locks provided by the USPS.

This section relates to the handling of mutilated paper money orders with ABA routing numbers 0000-0020 or 000000204.

7050.10 -Mutilated paper money orders must be grouped in batches not to exceed 200 documents in a batch. If the total number of mutilated items does not exceed 200, they may be handled as one batch. For larger quantities, make as many batches as necessary, not exceeding 200 in any one batch.

7050.20 -Insert a USPS Batch Locator Control Document at the beginning of each batch of mutilated money orders.

7050.30 -Prepare an adding machine listing of each batch showing the following information:

7050.40 -Batches of the paper money orders that cannot be machine processed without first being MICR amount encoded may be delivered to the USPS representative without processing, provided the above requirements are essentially met.

7050.50 - The total amount of mutilated items should be entered on the PS Form 1901, code 110.

FRBs are not required to institute regular routing procedures for the detection of stolen or raised money orders. However, each FRB will cooperate, in special circumstances, to aid USPS representatives in the detection of these items.

Adjustment of errors and charges by the FRB will be made by using SF 5515 for ALC 18-00-0005, and PS Form 1176 "Schedule of Differences in Money Order Clearances". (Appendix No. 1). All charges or credits accepted will be identified by the FRB, itemizing the schedule number, as indicated on PS Form I 1 76, and amount on the PS Form 1901 for code 003.

"Punch card" money orders that have the ABA routing number 0000-0119 will be handled as mutilated items. They should be identified as old style "punch card" money orders on the PS Form 1901 for code 004.

Canadian money orders, ABA routing number 0000-0127, and Canal Zone money orders, ABA routing number 0000-0800, can be mechanically processed; all others must be processed manually. The batch size of Canadian money orders cannot exceed 200 documents. Money orders of different countries cannot be intermingled; each country must be batched separately. The total of all domestic-international money orders should be shown under code 400 on the PS Form 1901.

7080.10 -Postal Service Reimbursement to FRBs. The Postal Service has agreed to reimburse the FRBs for services provided in processing postal money orders beyond the level of service provided to financial institutions paying cash items. Charges will be determined by an annual survey, according to Federal Reserve and U.S. Postal Service agreements, and will be billed monthly with a single bill for each Federal Reserve District submitted to the Money Order Division, and will be paid at the end of each 6 months. The Postal Service reserves the right to review and challenge the method used in calculating these charges.

7080.20 -Replacement of Money Order Lost in Transit. When a money order is lost in transit, in place of submitting a photostatic copy, a PS Form 6401 "Domestic Money Order Inquiry", must be submitted (Appendix No. 1). The forms are available at all post offices. The money order serial number, amount, purchaser or payee, name and address to whom a replacement is to be issued, and the written signature of the person filing the request for replacement must be completed on the PS Form 6401. The remaining information should be provided, if available, to aid in the replacement process. If the original money order has been paid, a replacement cannot be issued. A photocopy of the paid item will be provided without cost to the FRB.

Requests for information from member banks as to FRB date, batch number, and amount in which a particular money order was enclosed but listed free; was MICR encoded wrong or was processed but not credited to the bank, should be made by memorandum or letter to:

Redemption Reconciliation Section Money Order Division P.O. Box 14975 St. Louis, MO 63182

If a replacement was previously requested and the request was returned "Paid", then the information on the returned PS Form 6401 should be provided as part of your memorandum or letter.

7080.30 -Alternative Procedures. The Postal Service and the Federal Reserve System will continue, as capabilities and resources permit, to work toward truncating Postal Money Orders at the FRBs for subsequent data transmission to the Money Order Division. Acceptable alternative procedures resulting from this effort will be specified in subsequent amendments to this chapter.

The Postal Service forms PS-1901 and 1175 may be obtained from:

St. Louis Postal Data Center P.O. Box 14963 St. Louis, Missouri 63182

However, obtain pouch labels (showing the mailing address for money orders), box labels, and money order shipping boxes from your local postmaster.

Questions concerning the processing of Postal money orders may be directed to:

St. Louis Postal Data Center P.O. Box 14963 St. Louis, MO 63182Telephone: 314-425-5475; FTS 279-5475

Inquiries relating to Domestic -International money orders (semi-domestic) should be addressed to:

St. Louis Postal Data Center P.O. Box 14972 St. Louis, MO 63182

Questions on accounting documentation that affect Treasury's General Account may be directed to:

Deposit Reconciliation Section Division of Government Accounts and Reports Bureau of Government Financial Operations Department of the Treasury Treasury Annex No. 1 Attn: GAO Bldg., Room 3108 Washington, D.C. 20226 Telephone: 202-566-6521

APPENDIX NO. 1 LISTING

Forms Prescribed For Processing Postal Money Orders

Form Title

Postal Money Orders

Postal Money Orders

Domestic-International (Semi-domestic Countries)

Bank No. or FRB Code

USPS Batch Locator Control Document

Label 9 Money Order File Locator No.

SF 5515 Debit Voucher

SF 215 Deposit Ticket

PS Form 1901 Advice of Classification for Postal Money Orders

PS Form 1175 Domestic Money Orders Recapitulation of Batch Totals (Domestic -Fit and Mutilated)

PS Form 1175 Domestic Money Orders Recapitulation of Batch Totals (Semi-domestic)

PS Form 1176 Schedule of Differences in Money Order Clearances

PS Form 6401 Domestic Money Order Inquiry

Non-Negotiable International Money Orders

SAMPLE POSTAL MONEY ORDERS

SAMPLE POSTAL MONEY ORDERS

Domestic International (Semi-Domestic) Countries

Countries where money order service is available on domestic basis are:

Antigua Dominica Bahamas Grenada Barbados Montserrat Belize Saint Kitts-Nevis-Anquilla British Virgin Islands Saint Lucia Canada (U.S. Currency Only) Saint Vincent Canal Zone Trinidad & Tobago

Bank No. or FRB Code

Federal Reserve Federal Reserve Bank and Branches Code Bank and Branches Code

Atlanta.............. 0610 Little Rock...... 0820 Baltimore............ 0520 Louisville....... 0830 Birmingham........... 0620 Los Angeles...... 1220 Boston............... 0110 Memphis.......... 0840 Buffalo.............. 0220 Miami............ 0660 Charleston, W.V..... 0430* Milwaukee........ 0420* Charlotte............ 0530 Minneapolis...... 0910 Chicago.............. 0710 Nashville........ 0640 Columbia............. 0410* New Orleans...... 0650 Columbus............. 0440 New York......... 0210 Dallas............... 1110 Oklahoma City.... 1030 Denver............... 1020 Omaha.......... 1040 Des Moines........... 0730 Philadelphia..... 0310 Detroit.............. 0720 Portland......... 1230 El Paso.............. 1120 Richmond......... 0510 Helena............... 0920 Salt Lake City... 1240 Houston.............. 1130 San Antonio...... 1140 Indianapolis......... 0740 San Francisco.... 1210 Jacksonville...............0630 Seattle.......... 1250 Kansas City.......... 1010 St. Louis........0810

* Until the supply of USPS Batch Locator Control Document cards has been exhausted, these three branches will report under the codes listed above on all documentation forwarded to U.S. Postal Service.

USPS Batch Locator Control Document LABEL 9 SF 5515 DEBIT VOUCHER

SF 215 DEPOSIT TICKET

Instructions for Preparing SF 5515 for Charging U.S. Postal Money Orders

Block Number

(1) Self-explanatory (Voucher number is preprinted on form).

(2) Insert date amount was charged.

(3) Insert the U.S. Postal Service eight-digit agency accounting station code or agency location code (ALC) 18-00-0005.

(4) Insert the total amount of charges for Postal Money Orders from cash letters or other documents.

(5) Place the letter 'X' In the block in front of 'OTHER.'

(6) Insert the following: Redeemed Postal Money Orders.

(7) Insert name and address of the Federal Reserve bank or branch and its Bank Code as shown in this appendix on page 4 of 14.

(8) Self-explanatory.

(9) Insert the address as shown in this exhibit.

Distribution of SF 5515 Copies

Copy

Original Transmit on TFS Form 17. Transcript of the General Account of the U.S. Treasury. on the date charge was made.

Memorandum Agency

Confirmed Mail to address shown in block (9).

Depositary Retained by Federal Reserve Bank or branch.

PS FORM 1901

PS FORM 1175 FOR DOMESTIC -FIT AND MUTILATED

PS FORM 1175 FOR SEMIDOMESTIC

It's essential to know how to send and fill out a money order step-by-step in case you ever need to pay a bill, send money to a relative or transfer money discreetly from one place to another.

A money order is very similar to a check. It allows you to send or receive payments securely, unlike cash.

However, money orders are prepaid. Instead of money leaving your account when someone catches a check, money leaves your account the minute you fill out a money order and deposit it at an appropriate institution.

It can be wise to use a money order whenever you need to pay someone securely but can't use a smartphone app like MoneyGram, online platform, check or cash (or you don't want to use any of those methods).

Related: This is How We Can Transfer Money Online Without Hassle

This form of payment is accepted practically anywhere because they are automatically prepaid, so there's no risk of the money "bouncing," which can happen with a check. Furthermore, there's no identity theft risk, like when you wire money from a checking account.

You can use a money order when you need to:

However, remember that you can only send $1,000 in a single money order. You can send multiple money orders in the same shipment, though.

Banks and other financial institutions can offer this personal finance service, just like they can send cashier's checks and personal checks. Other financial institutions also provide money orders, including credit unions such as Western Union or anywhere you can have a bank account or get a credit card/debit card.

Related: Business plan, business - Money Order

Fortunately, filling out a money order is very straightforward and not at all difficult. You can get a money order from a location that sells them, such as pharmacies (including Walmart and CVS) or, more commonly, any of the 31,300 United States Postal Service retail offices. Conveniently, you can also send money orders from U.S. Postal Service offices.

Note that purchasing a money order involves a fee. The fee can vary from place to place; for instance, Walmart usually charges one dollar to send a money order, whereas the USPS can charge anywhere from $1.65 to $2.20 depending on how much you need to send.

You'll need a few pieces of information to fill out a money order:

You don't need to list the issuer of the money order or the location of the post office/convenience store from which you send it on the memo line.

Once you have a money order, write the name of the person to whom you are paying money in the "pay to the order of" or "pay to" fields, depending on which field your money order has. You should include the full name of the recipient or the full name of the business you are paying.

The next step is to add your address to the purchaser's address field. This is the address of the person purchasing the money order — in this case, you. You'll also add the payee's address.

Then you need to fill in the "memo" field. This is a line or field where you can describe what you'll use the money order for. If you're using it to pay a bill, you'll put the billing account number in this field.

Last, you must sign your name on the front of the money order where it is indicated. When signing the purchaser's signature, leave the back of the money order blank. That's where the payee or recipient will endorse it, similar to endorsing a check.

There you have it — it should only take you a few minutes to fill out a money order from start to finish, provided you have all the necessary information.

After you have filled out the money order, detach the receipt. The receipt is vital for your records and allows you to track whether the recipient ever cashed the money order.

Hand-deliver the money order to the recipient or mail it to your recipient using the postal service of your choice. Only the recipient will be able to cash it.

Remember that, unlike a check, whatever money you have designated for the money order will be gone from your account before the recipient cashes the money order.

Yes. To do this, you should immediately contact the person or party that issued the money order (i.e., USPS or Walmart). Ask for a cancellation request form and fill it out.

You'll need to have your receipt from the money order and show it to do this. Then you'll have to pay a fee to cancel the money order. This process is the same if you want to replace the money order or get a cash refund.