Money order is one of the best ways to send money and pay for your goods without using your cash. These are typically issued by post office transfer agents or banks so that you can seamlessly pay for your transaction without using cash.
Are you curious to know whether the USP sells cash money orders or not? Well in this article, we have provided all the information that you should know about the UPS Cash Money Orders. So, continue to read on.
Before going any deeper you should know what a money order is.
What is a Money Order in 2024?
Money order is basically a method of payment where you can make payments without using your cash or cheques. It allows you to transfer your money from one location to another without having any fear of money getting stolen or lost.
It doesn’t matter whether you have a bank account or not you can still use the money order. It’s more of a prepaid card that you can use to make the required payments. It also has your name and the recipient’s name which makes it a lot more secure avoiding any fraud and wrong transactions.
How does a Money Order work?
Money order works on a very simple principle. Firstly, you have to visit your nearby post office or some bank where you tell them that you want to buy a money order. You will pay the amount of money order that you want to along with a small fee. Now you write down your name and the person you have to pay (the payee) on the money order (to make it more secure).
Then you hand it over to the person whom you wanted to in cash. Then they have to visit their required bank or post office to get the amount of money from the Money Order. That’s it.
Why You Should Use Money Order?
Money orders are one of the most secure forms of payment that you can use to make smooth transactions. With cash, there is always a fear of stolen but with Money Orders, there is nothing to worry about. You can easily replace them even if they are lost or stolen.
You’re just required to fill in the name of the recipients along with your name and address and pay the required amount of money along with the small fees to buy the Money Orders. Lastly, hand this over to the person whom you have to pay and they can encash by visit the nearby post office or bank.
Does UPS Sell Money Orders?
The straightforward answer is no, UPS won’t sell any Money orders service in 2024. UPS is more of a shipping company that deals in package shipment on domestic and international routes. If a company or institution wants to issue a money order then they have to tie up(require authorization) with a financial body like banks or post office to do so. UPS is a shipping company and doesn’t have any connection with any financial institute for Money Order purposes.
UPS primarily focuses on package delivery, mailbox rental, and freight shipping, right now it doesn’t have any interest in providing the money order service.
Does UPS Cash Money Orders?
No, UPS doesn’t cash Money Orders in fact, it doesn’t prevent any kind of financial service. UPS is all about sending your packages from one location to another and getting them delivered on time. UPS is more of a logistic company rather than a financial institute.
Even if UPS wants to cash Money Orders they need to have prior authorization either from a bank or a post office.
Why UPS doesn’t sell the Money Order?
There are several reasons why UPS doesn’t sell money orders. Here, we have listed a few of them:
Out of Business
UPS is more of a shipping company that primarily focuses on expanding its logistics. It has been known for providing shipping services to individuals and businesses. Money orders are more of a financial service and they do not fit with the brand value of UPS.
Even if UPS wants to include the Money Order service they either have to introduce it as a sub-brand within the UPS or they have to altogether launch a new brand to do so. As of 2024, UPS doesn’t provide any Money Order Service.
Profitability
Money orders are usually sold for a very typical fee that usually ranges from 0.65 to 1.25 dollars which further depends upon the amount of money transferred and the provider. The fees are too low to make it profitable and cover the cost of printing processing and tracking the money orders.
Even if UPS includes this service then they might have to spend away more than they will make by selling these money orders.
Too Risky
Dealing with money orders means handling a large amount of cash which in turn increases the risk of theft, stolen, or loss. To make it secure UPS would have to spend too much on their security procedures and protocols to avoid all these risks. And the money they made by selling these money orders will be too low to make this business a profitable venture.
And if something goes wrong with any of the money orders then it poses a great threat to the UPS reputation and can pretty much spoil the name it’s name as a shipping company.
Why UPS doesn’t Cash the Money Orders?
UPS doesn’t cash money because its primary service is to deliver packages rather than providing any financial service. Money Orders are mostly associated with banks and post offices that are specialized financial institutes in handling monetary transactions.
UPS’s primary focus is on logistics and package delivery services and the money order is a financial service that doesn’t match their core business model.
Dealing with money orders poses a great threat and risk to UPS Brand Identity in case something like fraud, theft, or burglary happens. Besides that to process the money orders UPS is required to have a financial infrastructure Which will cost them a lot of investments compared to the return on the business model of money orders.
So rather than being a financial institute UPS focuses more on expanding its logistics operation to expand its name in the shipping industry.
What are the Substitutes For Money Orders in UPS?
There are a bunch of substitutes that you can use while dealing with Money Order in UPS.
Banks
Banks are the safest and most reliable options if you want to buy or cash the money orders. They usually charge low fees and provide the best security as there is no fear of your money getting theft or lost.
Keep in mind, that you do need to have a bank account if you want to buy money orders from a particular bank and there is also a certain limit on the amount of money(Money Order) you can buy per day.
Post Offices
Post offices are another safe place if you want to buy or cash the money orders. Just like the bank they also charge low fees and have a wide network of locations which makes cashing them a lot easier.
Money Transfer Agents
There are a lot of companies that provide these money transfer facilities to individuals and businesses such as Western Union, Pioneer, and a lot more. Keep in mind that they do charge transaction fees that are a bit higher from the bank but they often provide a fast and convenient way to cash out your money orders.
The only limitation they have is they are available at limited locations and their operating are may vary from day to day.