Both cashier's checks and money orders are practical tools for completing payments, and they even look similar. However, there are some notable distinctions between the two that could dictate which is ideal for your needs. For instance, cashier's checks are exclusively available through financial institutions and have greater limits. Below, we'll go into more detail about the parallels and differences.
What Makes Them Unique?
It's crucial to understand the specifics of both, such as where to obtain them and the costs involved, before choosing between a cashier's check and a money order.Maximum Problem
The maximum monetary amount is the main distinction between money orders and cashier's checks. The maximum limits on money orders are normally approximately $700 or $1,000, although the exact limits vary depending on the issuer. On the other hand, cashier's checks are offered for significantly higher amounts. Cashier's checks are frequently utilized for high-dollar transactions like a down payment on a home because of their higher maximum issue amounts.How to Locate Them
Any location that sells money orders, including the majority of supermarkets, post offices, pharmacies, and convenience stores, can be entered to purchase them. Even banks and credit unions carry them. Cashier's checks, on the other hand, are exclusively offered by banks and credit unions and typically require that you have an account there. It will be challenging to obtain a cashier's check quickly if you don't have a local bank account or if there isn't a branch close by. Just one of the benefits of maintaining a local bank account (which can also save you time and money in other ways). You might still have other options, though: Cashier's checks can be ordered from your online bank or an out-of-state bank by fax, mail, or internet ordering. Ask if you may purchase a cashier's check with cash (or a debit card cash advance) by going into your neighborhood bank or credit union. Some banks place restrictions on who can receive the check and where it can be mailed when you make an online purchase. It is feasible to obtain a cashier's check from a bank that you are not a client of, but it may be challenging to locate one that would. Obtaining a money order online is challenging or impossible.Trust
Another distinction between money orders and cashier's checks is their credibility. Cashier's checks are drawn on and guaranteed by a bank, while money orders are issued by other kinds of businesses. Money orders can occasionally be rejected in place of cashier's checks because they are thought to be less secure. Money orders and cashier's checks can both be faked, and con artists frequently employ both in their schemes. It's probably a scam if someone uses one of these methods to pay you and then requests a refund.Cost
When you take into account the distinctions mentioned above, it makes sense why cashier's checks are often more expensive than money orders. Cashier's checks are also a more durable instrument. They're also issued by banks, which don't have a good reputation for being inexpensive, in contrast to big-box stores that charge $1.4 for money orders. Cashier's checks, however, may end up being less expensive in some circumstances. For instance, it is less expensive to obtain one cashier's check that costs $10 rather than numerous smaller-denomination money orders that cost $5 each if you require a significant sum of money in the form of a certified payment, such as $15,000.If Something Is Wrong
Both of these tools provide some sort of insurance against theft or loss. You'll want to get your money back if a payment is lost, or you'll need to acquire a new one. If you save your receipt when you purchase a money order, this process is slightly simpler. However, resolving issues involving missing money orders is rarely free, and you should plan to wait 30 days or longer. If a cashier's check is missing, you could have to wait 90 days after submitting a cancellation request. If you don't have a lot of extra cash on hand, this could affect your cash flow.Finances Available
The first $5,525 of a cashier's check that is deposited is typically available within one business day. 7 Money orders frequently receive different treatment, have longer hold times, and only have the first $200 of the order available within one day. 8 USPS money orders are handled better than other money orders; they ought to be as readily available as cashier's checks.Similarities
Money orders and cashier's checks do have some similarities that, with other factors being equal, might make either one a wise decision. Check-like: The recipient of one of these instruments will deposit it just like a check, or, if their bank permits, they may try to cash the money. Given that they are guaranteed (the question is who guarantees the instrument), both are thought to be safer for recipients than personal checks. Before transferring anything of value, vendors must confirm the legitimacy of the document because false documents are frequently used. Your checking account number is not on cashier's checks or money orders. They are therefore more secure than personal checks, which include a wealth of important data. You might not want to give out your entire name, phone number, or home address if you don't know or trust the person you're paying. Both are challenging to reverse. Although it is possible, the procedure might be time-consuming. You're out of luck if the recipient cashed the check.Alternative Payment Methods
There are numerous additional ways to pay someone or receive payment. Other techniques can be less expensive, more secure, or more practical depending on your needs. Other options include cash, check, credit card payment, debit card payment, wire transfer, or prepaid card if a money order or cashier's check won't do.Questions and Answers (FAQs)
Which is more secure, a money order or a cashier's check?
Cashier's checks are regarded as being more secure because they are guaranteed and issued by banks. Additionally, they contain more security measures, including security threads, color-changing ink, watermarks, and unique paper. However, cashier's checks can be utilized in fraud. You might receive a cashier's check, for instance, and be asked to wire back a portion of it. Usually, the check will bounce after you've sent the wire, leaving you with no money.How much can you spend on a postal money order?
Up to $1,000 per money order can be spent on postal money orders. Money orders can be purchased in bulk for up to $1,000 each. If you purchase more than $3,000 worth of money orders in a single day, you must fill out a form and show identification. Even if you buy the money orders from various post offices, you still need to fill out the form and provide identification.