Postal Order - History and Use of The Postal Order

History and Use of The Postal Order

The Postal Order is a direct descendent of the money order which had been established by a private company in 1792. During World War I and World War II, British Postal Orders were temporarily declared legal tender to save paper and labour. Postal Orders can be bought and redeemed at post offices in the UK, although a crossed Postal Order must be paid into a bank account. Until April 2006 they came in fixed denominations but due to increased popularity they were redesigned to make them more flexible and secure. They now have the payee and value added at the time of purchase, making them more like a cheque. The fee for using this form of payment falls into one of three bands - details are available on the Post Office website. The maximum value of Postal Order available is £250.00 with the fee capped at £12.50. It was a safe method in times past, but nowadays offers very little advantage over cheques or electronic funds transfer. However, Postal Orders have regained popularity, especially as a form of payment for shopping on the Internet, as they are drawn on the Post Office's accounts so a vendor can be certain that they will not bounce. The use of Postal Orders (or postal notes in some countries) was extended to most countries that are now part of the British Commonwealth of Nations, plus to a few foreign countries such as Jordan, Egypt and Thailand.