Accepting money orders allows your small business to broaden its client or customer base to include individuals who prefer to avoid paper checks and credit card payments. When you receive a money order made out to your company, the process of cashing it differs little from redeeming one made payable to another person.
Money Order Endorsem*nt
-
Take your money order to a bank or a branch of the issuing institution such as the United States Postal Service, Western Union or MoneyGram and sign the back of the money order in front of a bank teller or a clerk. Write the name of the business first followed by your name and the position you hold at work. For example, endorse the money order as "XYZ Industries; Bob Smith, Owner."
Proof of Identification
-
When you cash money orders at a financial institution unfamiliar with you or your business, be prepared to present both personal proof of identification and a document substantiating your position at the company. If your small business doesn't have a business checking account, your bank may prefer that you deposit the funds in your regular checking accounting until a holding period passes.