Transferring A Money Order: How To Sign It Over To Another Person

Quick answer

• Most money orders can be signed over to another person, but it depends on the issuer.
• Look for a “Pay to the order of” line on the money order.
• Sign the back of the money order in the endorsement section.
• Write the recipient’s name after your signature.
• Keep a copy of the signed money order for your records.
• Be aware of potential fees or limitations imposed by the issuer.

Who this is for

• Individuals who have received a money order and need to give it to someone else.
• People who want to pay a bill or transfer funds using a money order without cashing it themselves.
• Those who need a clear, step-by-step guide on the endorsement process.

What to check first (before you act)

Issuer’s Policy

Before you attempt to sign over a money order, it’s crucial to understand the policies of the company that issued it. Not all money orders are transferable, and some may have specific rules or restrictions.

• What to do: Check the front or back of the money order for any printed terms and conditions. If you can’t find information there, visit the issuer’s website or contact their customer service.
• What “good” looks like: You find clear instructions or confirmation from the issuer that the money order is endorsable.
• Common mistake and how to avoid it: Assuming all money orders are transferable. Avoid this by verifying the issuer’s policy before proceeding.

Your Goal and Timeline

Why are you signing over the money order? Understanding your objective will help ensure you’re using the correct process and that it meets your needs.

• What to do: Define what you want to achieve by transferring the money order. Is it to pay a specific person, settle a debt, or simply give the funds to someone else?
• What “good” looks like: You have a clear purpose for the transfer, which aligns with the capabilities of signing over a money order.
• Common mistake and how to avoid it: Not having a clear purpose. This can lead to confusion or errors in the endorsement process.

Recipient’s Information

You’ll need the correct name of the person or entity you are signing the money order over to. Accuracy is key to ensure they can successfully cash or deposit it.

• What to do: Obtain the full legal name of the intended recipient. If it’s a business, ensure you have the exact business name.
• What “good” looks like: You have the precise name of the person or business to whom the money order will be transferred.
• Common mistake and how to avoid it: Misspelling the recipient’s name or using an incorrect business name. This can cause the recipient to be unable to cash the money order.

Step-by-step: How to Sign Over a Money Order to Someone Else

1. Obtain the Money Order: Have the physical money order in your possession.

• What “good” looks like: You are holding the money order you intend to transfer.
• Common mistake and how to avoid it: Trying to endorse a copy or a digital image. Always use the original document.

2. Locate the Endorsement Area: Turn the money order over. Look for a section typically labeled “Pay to the order of,” “Endorse here,” or a blank space on the back.

• What “good” looks like: You have identified the specific area on the money order designated for signing.
• Common mistake and how to avoid it: Writing on the front of the money order or in an area not meant for endorsement. This can invalidate the order.

3. Sign Your Name: In the designated endorsement area, sign your name exactly as it appears on the front of the money order (if a name is present) or as you normally sign.

• What “good” looks like: Your signature is clearly visible in the endorsement section.
• Common mistake and how to avoid it: Signing in a way that is illegible or doesn’t match your identification. Use a pen that won’t smudge.

4. Write the Recipient’s Name: Immediately after your signature, clearly write the full name of the person or business you are transferring the money order to.

• What “good” looks like: The recipient’s name is written legibly directly after your signature.
• Common mistake and how to avoid it: Leaving a large gap between your signature and the recipient’s name, or writing it in a separate area. This can create ambiguity.

5. Write “For Deposit Only” (Optional but Recommended): If the recipient intends to deposit the money order directly into their bank account, they might write “For Deposit Only” after their name. This can add a layer of security.

• What “good” looks like: The phrase “For Deposit Only” is clearly written after the recipient’s name, if applicable.
• Common mistake and how to avoid it: Not considering this security measure if a deposit is the intended use.

6. Inform the Recipient: Let the person you are giving the money order to know that you have signed it over to them and that it’s ready for them to use.

• What “good” looks like: The recipient is aware that they have received a signed money order and how to use it.
• Common mistake and how to avoid it: Simply handing over the money order without any communication. This can lead to misunderstandings about its readiness.

7. Keep a Record: Take a clear photo or make a photocopy of the front and back of the money order, especially the endorsement section, before you give it to the recipient.

• What “good” looks like: You have a documented record of the transaction for your own reference.
• Common mistake and how to avoid it: Not keeping any record. This can be problematic if issues arise later, such as the money order being lost or disputed.

8. Deliver the Money Order: Hand the endorsed money order to the intended recipient.

• What “good” looks like: The money order is safely in the hands of the person it’s meant for.
• Common mistake and how to avoid it: Losing the money order during transit or giving it to the wrong person. Use secure delivery methods if not handing it over in person.

Common Mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
<strong>Assuming transferability</strong>	The recipient cannot cash or deposit the money order; you may need to go through a refund process.	Always verify the issuer’s policy on endorsing money orders.
<strong>Signing in the wrong place</strong>	The money order may be invalidated, making it impossible for anyone to use.	Carefully locate and use only the designated endorsement area on the back of the money order.
<strong>Illegible signature</strong>	The recipient may have trouble cashing it, or the issuer might question its validity.	Sign clearly and legibly, preferably in blue or black ink.
<strong>Incorrect recipient name</strong>	The recipient may be unable to cash or deposit the money order, leading to delays and potential disputes.	Double-check the spelling and accuracy of the recipient’s full legal name or business name.
<strong>Leaving blank space after signature</strong>	Someone could potentially alter the recipient’s name, making it a security risk.	Write the recipient’s name immediately after your signature with no significant space in between.
<strong>Not keeping a record</strong>	You have no proof of the transaction if the money order is lost, stolen, or disputed.	Take a clear photo or photocopy of both sides of the money order after endorsement.
<strong>Endorsing for cash when recipient wants to deposit</strong>	The recipient might be forced to cash it at a location that charges fees, or they might not be able to cash it.	Coordinate with the recipient to understand their intended use (cash vs. deposit) and endorse accordingly.
<strong>Trying to endorse a damaged money order</strong>	The markings might be unclear, or the issuer might refuse to honor it due to its condition.	Ensure the money order is in good condition before attempting to endorse it. If damaged, contact the issuer for a replacement.
<strong>Using the wrong pen color</strong>	Some institutions may have policies against certain ink colors, potentially causing delays.	Use black or blue ink, which are standard and generally accepted.
<strong>Endorsing a “non-negotiable” money order</strong>	These are typically for specific purposes and cannot be transferred.	Check the money order for any “non-negotiable” or similar restrictive language before attempting to endorse.

Decision rules

• If the money order has a “Pay to the order of” line and it’s blank, then you can endorse it over to someone else because this indicates it’s transferable.
• If you are unsure about the issuer’s policy, then do not endorse it until you confirm, because endorsing an unendorsable money order can cause significant problems.
• If the money order is made out to you by name, then sign your name first in the endorsement section before writing the recipient’s name, because this validates that you are the rightful owner transferring it.
• If the money order is made out to “Cash,” then you can simply write “Pay to the order of [Recipient’s Name]” and sign your name below it, because these are essentially bearer instruments.
• If the recipient plans to deposit the money order, then they might add “For Deposit Only” after their name, because this adds a layer of security and restricts its use to their account.
• If you are transferring a money order to a business, then write the exact legal business name, because using an incorrect name will prevent them from depositing or cashing it.
• If the money order is for a large amount, then consider the security of handing it over in person or using a trackable mail service, because loss or theft of large sums is a significant risk.
• If you make a mistake while endorsing, then you may need to contact the issuer for a replacement, because many mistakes cannot be corrected on the money order itself.
• If the money order is from a less common issuer, then it’s more important to verify their specific endorsement rules, because smaller companies may have unique procedures.
• If you are transferring a money order to pay a bill, then confirm with the biller that they accept endorsed money orders, because some merchants may have restrictions.

FAQ

Can I sign over a money order that is made out to me?

Yes, if the money order is made out to you by name, you can sign it over to another person by endorsing it. You’ll sign your name first, then write the recipient’s name.

What if the money order is made out to “Cash”?

A money order made out to “Cash” is treated like cash. You can endorse it by writing “Pay to the order of [Recipient’s Name]” and then signing your name below it.

Can I endorse a money order if there’s no “Pay to the order of” line?

If there is no specific line and there is a general endorsement area, you can write the recipient’s name and sign. However, always check the issuer’s policy first, as some may not allow this.

What happens if I write the recipient’s name before my signature?

This is generally not the correct procedure and can cause issues. Always sign your name first to validate the transfer, then write the recipient’s name.

Can I sign over a money order to a business?

Yes, you can sign over a money order to a business. Ensure you write the business’s exact legal name after your signature.

What if the recipient loses the money order after I’ve signed it?

If you kept a record (photo/copy) and the recipient lost it, they may be able to file a claim with the issuer. Your record can help with the claim process.

Are there fees for signing over a money order?

The act of endorsing itself typically doesn’t incur a fee from the issuer. However, the recipient might face fees when cashing or depositing it, depending on where they do so.

Can I endorse a money order that is already cashed or expired?

No, once a money order is cashed or has passed its expiration date (if applicable), it cannot be endorsed or transferred.

What this page does NOT cover (and where to go next)

• Cashing a money order: This guide focuses on transferring, not the process of cashing it yourself. You may need to visit a bank, credit union, or retail location.
• International money orders: Policies and procedures for international transfers can vary significantly and are not covered here.
• Disputing a money order: If there’s a problem with a money order, you’ll need to follow the issuer’s specific dispute resolution process.
• Money order scams: Be aware of potential scams involving money orders. If something seems too good to be true, it likely is.