Cashier checks and money orders can be helpful if you are looking for a safer payment option than cash or personal checks or if your bank account is unavunavailableThere are some key differences.
Cashiers’ checks and money orders have the biggest differences. Money orders tend to be cheaper, but they are easier to buy and are more reliable. Convenience and grocery stores often sell them, making them a popular payment method for those without access to traditional banking services.
If you need a cashier’s check
- Purchases exceeding $1,000 are not possible
- The check can be paid for at least $10
- You are a bank customer with access to a financial institution and a bank account.
- You are making an important financial decision and need a little more protection.
If you use a money order
- Purchases of $1,000 and less are acceptable.
- Spend on the money order or less.
- You don’t have financial access — or it’s easier to buy elsewhere, such as at convenience stores and grocery stores.
- You need a payment method for everyday transactions without using an online bank.
This is how you can choose which one works best for your needs.
What Is The Best Time To Use a Cashier’s Check vs. Money?
Cashier’s checks and money orders best serve large purchases when other forms of payment may not be accepted. If you need to spend $5,000 on a used car, the seller will not accept a personal check or a credit card. You will need another type of guaranteed payment to avoid carrying larger amounts of cash, such as a security deposit.
A cashier’s or official check is the best payment type. Although many businesses won’t accept money orders for amounts greater than $1,000, there is usually no limit to the amount a cashier can cover. The money order issuer sets the limit for money orders, making them less flexible for larger transactions.
Cashier’s checks and money orders are better if you have to pay a 500 down payment for an apartment but can’t use your check.
Which Is More Expensive, a Cashier’s Check Or a Money Order?
Money orders are usually cheaper. Walmart offers the lowest prices for money orders. They charge a maximum of $88 for $1,000 with a valid government-issued ID. The U.S. Postal Service charges $1.25 to $1.76, depending on the amount. Banks charge about $5. Retail stores and transfer outlets also provide money orders but might have different transaction fees.
Cashier’s checks of any amount will cost you around $10, and they usually require a money order upfront for the desired amount. Consider the payment types the outlets accept when purchasing money orders or cashier’s checks.
A certain bank account is eligible for exemptions from fees by banks and credit unions.
Which One Is Easier To Buy?
Are you looking for milk in a supermarket? It is easier to order money orders. Money orders can be purchased at banks, post offices, and other retail outlets. A customer service counter could let you pick up a money order. These purchases allow for various amounts of cash and are convenient for buyers.
Cashier’s checks are available from only a financial institution where you are a member.
You won’t be able to purchase either of these items online. Many issuers require you to visit a physical place to purchase a cashier’s check vs. a money order. You can request that your recipient send international money online. Venmo does not charge for users to pay with a pre-paid debit card. This is usually free if you have a bank account.
Which Is Safer: A Money Order Or a Cashier’s Check?
Cashier’s checks are safer. You can recover your money if you lose your cashier’s or money order or it is stolen. They also have additional security features such as watermarks and unique serial numbers, which are not typically found on a regular check. This makes them safer than carrying cash.
The buyer fills out the receiver’s name in a money order, like writing a cheque. Learn how to make a check. Anyone could cash your money order if you remembered to fill it in. You will not get your money back if someone cashes a money order. Money orders also limit money on the amount you can send compared to cashier’s checks.
You can contact the police to report fraudulent cashing of a cashier’s or money order. By knowing the pros and cons of both options, such as the availability of cash advances and the policies on paper checks, you can decide which payment method is best for your needs.
Cashier’s checks provide more protection because the financial institution fills in the “pay to” line, not the buyer. A financial institution’s official check may appear more trustworthy to the recipient than a money order at your local 24-hour markets. Both options are good ways to ensure payment and add an extra layer of security.
Below are some statistics about money orders and cashier’s checks:
| Feature | Money Order | Cashier’s Check |
|---|---|---|
| Cost | $1.25 – $3 | $6 – $15 |
| Security | Less secure | More secure |
| Acceptance | Accepted at most businesses | Accepted at some businesses |
| Backed by | Not backed by any financial institution | Backed by the bank that issued it |
Cashier checks and money orders are both alternatives to carrying cash, but they come with different levels of safety. While a money order requires the buyer to fill in the receiver’s name, anyone could cash it if left blank, making it less secure. On the other hand, a cashier’s check provides more protection as the financial institution fills in the “pay to” line, not the buyer. You can recover your money with a cashier’s check or order in case of theft or loss. However, you won’t get your money back if someone fraudulently cashes a money order. This is where an insurance company could play a role if you insure the money by mail. Both cashier’s checks and money orders have strict limits on the amount they cover, with cashier’s checks generally having maximum limits and money orders typically only used for smaller amounts. For larger transactions or specific types of transactions, it might be necessary to consider other secure payment options.
It’s always a good idea to stay vigilant and report any suspicious activity to the police or financial institution. If you want to ensure your financial security, it’s also wise to check your credit score regularly with a service like GreendayOnline.
Frequently Asked Questions
What is the difference between a cashier’s check and a money order, and when should I use each?
A cashier’s check is drawn from a bank account guaranteed by the bank, while a money order is paid for and guaranteed by a third party. Cashier’s checks are more secure for large purchases.
Are cashier’s checks or money orders more secure for large transactions or payments?
Cashier’s checks are more secure as they are guaranteed funds backed by a bank, making them preferred for real estate transactions, business payments, and other large amounts.
What are the fees associated with obtaining a cashier’s check or a money order, and how do they compare?
Cashier’s check fees range from $5-$20 based on the amount, while money order fees are around $1-$5 at most retailers regardless of the amount. Money order fees tend to be lower.
Which option is more widely accepted, a cashier’s check or a money order?
Cashier’s checks are more widely accepted due to being guaranteed by a bank. Money orders may have more restrictions, especially for large purchases, but both offer broad acceptance.
Can I purchase a cashier’s check or money order online, and how does the process differ from getting one in person?
Yes, many banks and the USPS allow online ordering of cashier’s checks and money orders for delivery or pickup. The process is faster but has lower daily limits than in-person purchases.
