A postal order is used for sending money through the postal system. postal orders can be bought and redeemed at post offices, come in fixed denominations, and are legal tender in the UK. The fee for using this form of payment tends to be around 8%.
PostalOrders are not, strictly speaking, legal tender, in the way that banknotes are, but are a type of promissory note, similar to a cheque.
Postalorders were declared legal tender during both World War I and World War II as a way of saving on both paper and labour.
The use of postalorders (or postal notes in some countries) was extended to most countries that are now part of the Commonwealth of Nations, plus to a few foreign countries such as Jordan, Egypt and Thailand.
Money orders are also a more trusted method of payment since it is required that the funds be prepaid for the amount shown on it.
Unfortunately, most of the institutions that issue money orders charge a "non-refundable service fee," which is sometimes greater than the value of the money order itself―especially for lower denomination money orders (the service fee for filing a claim with MoneyGram, for example, is $12).
International money orders are thought to be safer than sending currency through the post because there are various forms of identification required in order to cash an international money order often including a signature, and a form of photo identification.
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