A postal order or postal note is a type of money order usually intended for sending money through the mail. It is purchased at a post office and is payable to the named recipient at another post office. A fee for the service, known as poundage, is paid by the purchaser. In the United States, this is known as a postal money order. Postal orders are not legal tender, but a type of promissory note, similar to a cheque.
The postal order is a direct descendant 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.[ citation needed ] 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. [1] Until April 2006 they came in fixed denominations though an amount of any value less than the next higher fixed denomination could be produced by adding one or more postage stamps in the space on the postal order that was designated for that purpose, 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. There is a fee for using this form of payment. The maximum value of postal order available is £250.00 for a fee of £12.50. [2]
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. [3]
United States Postal Money Service was introduced in 1864 by an act on Congress as a way of sending small amounts of money through the mail. [4] By 1865 there were 416 post offices designated as money order offices that had issued money orders to the value of over $1.3 million and by 1882 they had issued orders valued at $113.4 million from 5,491 money order offices. [5]
Currently they facially appear as a draft against an account held by the United States Postal Service, and the United States Postal Service requires a purchaser to know, in advance, where presentment of the instrument will occur. Only special, more expensive United States International Postal Money Orders may be presented abroad. In the United States, international money orders are pink and domestic money orders are green. [6]
Canada had its own postal orders (called postal notes) from 1898 until 1 April 1949, when these were discontinued and withdrawn.
A British Forces Post Office in Suffield, Alberta was issuing British postal orders as late as July 2006.
Chinese Imperial Post began issuing postal orders since 1897, the so-called "remittance certificate". After purchase, these certificates are payable at main post offices in China and usually bearing franked postage stamps represented as fee. Since 1925, a set of special stamps were used by post offices to issue secured postal orders. [7] Since 1929, Chinese Post were capable of selling international postal orders cashable under UPU protocol at a few other countries including Japan, Britain, France, and the US.
A Defence canteen order was a variant of a postal order used in Australia during World War II. Purchased at a post office, it was payable to an enlisted person in goods from a canteen rather than being a cash instrument. [8]
Postal orders are gaining in popularity as collectibles, especially among numismatists who collect banknotes.
There is an active numismatic organisation in the UK called the Postal Order Society that was established in 1985 with members both domestically and overseas. They hold twice-yearly postal auctions of postal orders and related material from across the British Commonwealth.
Despite competition from cheques and electronic funds transfer, postal orders continue to appeal to customers, 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. They also enable those without a bank account, including minors, to make small financial transactions without the need for cash. Postal workers in the United Kingdom use voided or cancelled orders in their training. [9]
A post office is a public facility and a retailer that provides mail services, such as accepting letters and parcels, providing post office boxes, and selling postage stamps, packaging, and stationery. Post offices may offer additional services, which vary by country. These include providing and accepting government forms, and processing government services and fees. The chief administrator of a post office is called a postmaster.
A postage stamp is a small piece of paper issued by a post office, postal administration, or other authorized vendors to customers who pay postage. Then the stamp is affixed to the face or address-side of any item of mail—an envelope or other postal cover —which they wish to send. The item is then processed by the postal system, where a postmark or cancellation mark—in modern usage indicating date and point of origin of mailing—is applied to the stamp and its left and right sides to prevent its reuse. Next the item is delivered to its addressee.
An overprint is an additional layer of text or graphics added to the face of a postage or revenue stamp, postal stationery, banknote or ticket after it has been printed. Post offices most often use overprints for internal administrative purposes such as accounting but they are also employed in public mail. Well-recognized varieties include commemorative overprints which are produced for their public appeal and command significant interest in the field of philately.
Postal service in the United States began with the delivery of stampless letters whose cost was borne by the receiving person, later encompassed pre-paid letters carried by private mail carriers and provisional post offices, and culminated in a system of universal prepayment that required all letters to bear nationally issued adhesive postage stamps.
Indian postal systems for efficient military and governmental communications had developed long before the arrival of Europeans. When the Portuguese, Dutch, French, Danish and British conquered the Marathas who had already defeated the Mughals, their postal systems existed alongside those of many somewhat independent states. The British East India Company gradually annexed the other powers on the sub-continent and brought into existence a British administrative system over most of modern-day India, with a need to establish and maintain both official and commercial mail systems.
This is a survey of the postage stamps and postal history of the Russian Empire, the Soviet Union and the modern Russian Federation.
A training stamp is a label resembling a postage stamp that is used by postal authorities to train postal workers. They generally have the same size and shape as regular stamps, but with a minimal design. Alternatively, several countries have simply obliterated their regular stamps in order to make the training process more realistic, for instance Sudan and the United Kingdom.
A money order is a directive to pay a pre-specified amount of money from prepaid funds, making it a more trusted method of payment than a cheque.
A traveller's cheque is a medium of exchange that can be used in place of hard currency. They can be denominated in one of a number of major world currencies and are preprinted, fixed-amount cheques designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.
India Post is an Indian government-operated postal system in India, and is the trade name of the Department of Post under the Ministry of Communications. Generally known as the Post Office, it is the most widely distributed postal system in the world. Warren Hastings had taken initiative under East India Company to start the Postal Service in the country in 1766. It was initially established under the name "Company Mail". It was later modified into a service under the Crown in 1854 by Lord Dalhousie. Dalhousie introduced uniform postage rates and helped to pass the India Post Office Act 1854 which significantly improved upon 1837 Post Office act which had introduced regular post offices in India. It created the position Director General of Post for the whole country.
A cheque, or check, is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account where the money is held. The drawer writes various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee, to pay the amount of money stated to the payee.
Postal notes were the specialized money order successors to the United States Department of the Treasury's postage and fractional currency. They were created so Americans could safely and inexpensively send sums of money under $5 to distant places.
National Girobank was a British public sector financial institution run by the General Post Office that opened for business in October 1968. It started life as National Giro then National Girobank and finally Girobank plc before being absorbed into Alliance & Leicester in 2003.
The United Kingdom was the first country in the world to issue postal orders on 1 January 1881. They were the brainchild of the president of the Birmingham Chamber of Commerce, John Skirrow Wright which was to enable poorer people to buy goods and services by post, as they were unlikely to have bank accounts. The rich had bank accounts and could write cheques. A delegation of the Birmingham Chamber went to the annual meeting of chambers of commerce in London and John Skirrow Wright presented the idea, complete with all the details on how it would work including all the postal order values proposed. At first London bankers were against the idea, thinking it would affect their businesses, and the idea was rejected. However, eventually, the bankers realised that the people who would use postal orders were not their customers and therefore no threat to their business. Consequently, at the Annual Meeting a year later John Skirrow Wright presented the idea again and this time it was accepted and the postal order system was started exactly as Skirrow Wright and Birmingham Chamber had proposed.
A payment is the tender of something of value, such as money or its equivalent, by one party to another in exchange for goods or services provided by them, or to fulfill a legal obligation or philanthropy desire. The party making the payment is commonly called the payer, while the payee is the party receiving the payment. Whilst payments are often made voluntarily, some payments are compulsory, such as payment of a fine.
A demand draft (DD) is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee).
A savings stamp is a stamp issued by a government or other body to enable small amounts of money to be saved over time to accumulate a larger capital sum. The funds accumulated may then be used to make a larger purchase such as taking out a savings bond or to pay a large upcoming bill. Often issued in conjunction with post office run savings banks, savings stamps have also been issued by private companies. Supermarkets have issued the stamps to enable the spreading of large bills, package holiday companies have used them to enable customers to save for an annual holiday, and utilities companies have used the stamps to enable customers to spread the cost of their bills.
Turkmenpost, is the national postal operator of Turkmenistan. The company is responsible for the delivery of mail and issuing postage stamps. It has been a member of the Universal Postal Union since January 26, 1993. Turkmenpost employs about 2,000 people and has over 146 post offices, with its headquarters in Ashgabat.
The South African Republic (ZAR), later known as Transvaal issued revenue stamps from 1875 to around 1950. There were a number of different stamps for several taxes.
The U.S. Parcel Post stamps of 1912–13 were the first such stamps issued by the U.S. Post Office Department and consisted of twelve denominations to pay the postage on parcels weighing 16 ounces and more, with each denomination printed in the same color of "carmine-rose". Their border design was similar while each denomination of stamp bore its own distinctive image in the center (vignette). Unlike regular postage items, whose rates were determined by weight in ounces, Parcel Post rates were determined and measured by increments in pounds. The new stamps were soon widely used by industry, farmers and others who lived in rural areas. Partly owing to some confusion involving their usage, their exclusive use as Parcel Post stamps proved short lived, as regular postage stamps were soon allowed to be used to pay parcel postage rates.
