On a money order, the remitter is the individual who purchases the order. For example, if you don’t have checks and need to send a payment over the mail, you can buy a money order. That person becomes the remitter of the money order.
A remitter line appears on cashier’s checks, teller checks, and some traveler’s checks, in addition to money orders. A merchant or seller who wants a remitter payment, which is a payment method other than cash or personal check, is usually doing so to reduce risk. Remitter payments are nearly never returned due to insufficient cash.
A merchant or seller may require a remitter payment for a variety of reasons. Merchants like remitter payments since they are guaranteed monies, as previously stated. When dealing with strangers, this is usually the best option. Because the two parties have never done business together, an individual selling a car may request that the person buying it show guaranteed funds. When sending money to inmates, money orders and cashier’s checks are frequently used. Other advantages include the fact that remitter payments are less susceptible to forgery than cash and personal checks, and they do not incur additional expenses for the merchant or seller.