What is a monetary order?

A money order is an instruction given to a bank to transfer an amount of money from one account to another. Money orders are commonly used to make payments between companies or between individuals.

A money order can be issued online, over the phone, at a bank branch, or through an ATM.

How does a money order work?

The issuer of the money order provides information about the recipient of the funds, including their name, account number, and the bank where the account is located. The amount you wish to transfer and the currency in which the transfer must be made are also indicated.

What is a bank draft?

A bank transfer is a way to transfer money from a bank account to another. However, unlike a money order, a bank draft is primarily used to transfer funds to other countries.

Differences between monetary order and bank draft

• Money orders are primarily used to make domestic payments, while bank drafts are used to make international payments.
• Money orders can be made online, in person, or over the phone, while money orders are typically made in person at a bank branch.
• Bank wires are usually more expensive than money orders.

Conclusions

In short, both money order and bank draft are ways to transfer money, but they are used in different contexts. The money order is mainly used to make domestic payments, while the bank draft is used to make international payments. Furthermore, the monetary order Can be done online, in person or by phone, while a bank transfer is usually made in person at a bank branch.

It is important to note that in both cases, accurate details of the recipient of the funds must be provided to ensure that the transfer is successful.

References

• https://www.nerdwallet.com/article/banking/what-is-a-bank-draft
• https://www.investopedia.com/terms/m/moneyorder.asp

In conclusion, money orders and bank drafts are ways to transfer money, each one has its specific application, so it is important to know the differences between them to use them appropriately in different situations.

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