Money Order Law and Legal Definition

A money order is a negotiable instrument requiring the issuer to pay a certain sum of money on demand to a specific person or organization.

Money orders are issued by governments (usually through postal authorities), banks, and other institutions to purchasers who pay a service fee in addition to the face amount of the money order. They are payable on demand in cash, they are a generally accepted means of payment. The American Express Co. began issuing money orders in 1882.