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Money Order vs. Cashier’s Check

Cashier’s check vs. money order is both an effective instrument for paying bills and even have similar features.

However, there are some significant distinctions between them that could determine which one is the best option for your needs.

For instance, cashier’s checks have greater limits. However, they can only be obtained through banks.

How do they compare

If you’re deciding between a cashier’s check or money order, it’s essential to be aware of the particulars of both, including where to find them, and the costs you’ll be charged.

Maximum amount Issue

The main difference between the two options is the maximum amount limit. The majority of money orders have a limit of $700 or $1,000, but the actual limits vary upon the company that issued them. Cashier’s checks, on the contrary, can be used for much higher amounts.

Due to their greater amount of maximum issue, Cashier’s checks are typically utilized for transactions that require a large amount of money, such as a down payment for a home.

Where to get them

You can purchase money orders in any store that sells them, which includes the majority of supermarkets, post offices, pharmacies, and convenience stores. They are also available in credit unions and banks.

Cashier’s checks, however, are only available at credit unions and banks, and typically, you need to have an account with them in order to obtain one.

If you don’t have a local bank account or no branch near you, it’s difficult to obtain cashier’s checks quickly. This is just one reason to have a local bank account (which could also help you save time as well as money in different ways). But, you might have options

  • Pay cashier’s checks via mail, online, or by fax through your online bank or an out-of-state bank.2
  • Visit a local branch of a bank and inquire whether it’s possible to pay in cash (or utilize an advance on your debit card) to purchase cashier’s checks.
  • If you place an order on the internet, some banks have restrictions as to who checks are payable to and to where they may be sent.

It’s not difficult to obtain a cashier’s check from a bank you aren’t a customer of. However, it could be difficult to locate an institution that can accommodate your needs. It is not possible to obtain a money order on the internet.

Trust issue

Credibility is a differentiator between cashier’s checks and money orders. Checks. Cashier’s checks are drawn on the bank and are guaranteed by the bank. In some cases, money orders are thought of as less secure than cashier’s checks and are not accepted as a replacement.

Cashiers’ checks, as well as money orders, are both prone to scams.

If anyone pays you with an instrument and then demands you to repay the money, it’s probably an enticement.

Cost

Cashier’s checks are generally higher priced than cash orders. This is understandable when you take into account the advantages mentioned above.

Cashier’s checks are more durable instruments. Also, banks issue them, which doesn’t have a reputation of low cost as opposed to the mass-market retailers who sell money orders for just $1.

However, a cashier’s check can result in being more affordable in certain circumstances. For instance, if require large amounts of money in the shape of a certified check — say $15,000 — it’s more affordable to purchase one cashier’s check for just $10 rather than to buy several smaller denomination money orders at $5 each.

If Things Don’t Go As Plan

Both instruments provide some type of protection in case they are stolen or lost.

If you lose a payment then you’ll have to seek the money back or require a replacement. The process is a bit more straightforward with a money order, provided you save your receipts for the purchase of money orders.

However, dealing with lost money orders isn’t always simple and you can expect to wait for 30 days or more before getting a resolution.

If you use a cashier’s cheque it is possible to wait up to 90 days after you have submitted a cancellation request. this could cause difficulties with cash flow unless you have plenty of cash on hand.

Funds availability

If you make a cashier’s check typically, you will receive the first $5,000 in just one working day. The money orders are usually handled differently, with longer wait times and only the first $200 accessible within 1 day.

USPS money orders get more favorable treatment than other kinds of money orders. They should have the same access as cashier’s checks

Similarities

Money orders and cashier’s checks have a number of features in common that make them an excellent option, with all other things being the same.

Check-like:

Anyone who is the recipient of one of these items will be able to deposit it as an actual check. Alternatively, they could try to cash out the money in the event that their bank permits it.

The seller-preferred:

They are thought to be more secure than personal checks, as they’re guarantee-backed (the issue is who is the person who guarantees the instrument) which makes them more likely not to be bounced.

However, fake checks are commonplace, and sellers must verify their validity prior to sending any valuable items.

Private Cashier’s checks don’t contain the number of your checking account. They are therefore safer in comparison to checks for personal use, as they contain a lot of important details.

If you don’t know or believe in the person you’re paying, you may not want to disclose your full name, telephone number, or address.

It is difficult to cancel It is difficult to cancel one or the other however the process could be difficult. If the beneficiary cashes the check then you’ll be out of luck.

Are there alternatives?

There are a variety of other methods to receive or make payments. Based on your requirements alternative methods could be cheaper as well as more secure and more practical.

If a money order or a cashier’s check isn’t sufficient, alternatives are cash, check, or credit card payments, the debit card, wire transfer, or prepaid cards.

Commonly asked questions (FAQs)

Which is more secure: A cashier’s check or money order?

Cashier’s checks are deemed to be more secure due to their backing by banks and given by banks. They also include more security features such as security threads and watermarks as well as dye-shifting ink and specially designed paper.

Cashier’s checks are often employed in fraud. For instance, someone could give you a check and then request that you return a portion by wire. The check may bounce, but only after you’ve made the wire which will leave you without cash.

What’s the maximum limit for a post-money order?

Postal money orders are available for as little as $1000 per cash order. You can purchase multiple money orders for as little as $1,000 per one.

If you purchase more than $3,000 in money orders within a single day, you must fill out a form and show proof of identity.

It is required to fill out the form and provide proof of identity even if you buy the money orders from various post offices.

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