When you need to make a secure payment especially to someone you don’t know well cash, personal checks, or apps like Venmo may not be appropriate. In those situations, money orders and cashier’s checks are two trusted alternatives.
They may look similar, but they serve different purposes. Understanding how they work can help you choose the right one, avoid unnecessary fees, and protect your money.
What Is a Money Order?
A money order is a prepaid payment form. You pay the amount upfront, plus a small fee, and the issuer creates a document that you can give to the recipient.
Common places to buy money orders include:
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Post offices
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Grocery stores
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Convenience stores
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Pharmacies
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Banks and credit unions
Most money orders have limits between $700 and $1,000 per order, depending on the issuer.
Example
Imagine you’re paying a landlord for a $900 security deposit but don’t want to use cash. A money order is a simple and affordable option.
What Is a Cashier’s Check?
A cashier’s check is issued by a bank or credit union and guaranteed by that financial institution. The bank takes money from your account (or accepts cash) and issues the check in its own name.
Because the bank backs the payment, cashier’s checks are often used for large transactions, such as:
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Buying a car
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Making a home down payment
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Paying contractors
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Closing real estate deals
Unlike money orders, cashier’s checks usually have much higher limits or no practical limit at all.
Example
If you’re buying a used car for $12,000, the seller will likely prefer a cashier’s check instead of multiple money orders.
Key Differences Between Money Orders and Cashier’s Checks
1. Maximum Payment Amount
This is one of the biggest differences.
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Money orders: Typically limited to $1,000 each
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Cashier’s checks: Suitable for large payments, even tens of thousands of dollars
If you need to send $5,000, you would need multiple money orders but only one cashier’s check.
2. Where You Can Get Them
Money orders are widely available, including at retail stores and post offices.
Cashier’s checks are only available from banks and credit unions. Many banks require you to be a customer, although some may issue one if you pay in cash.
This makes money orders easier to access quickly, especially if you don’t have a bank account.
3. Cost
Money orders are usually cheaper.
Typical fees:
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Money order: $1 to $5
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Cashier’s check: $8 to $15
However, for large payments, cashier’s checks may actually be more cost-effective.
Example
Sending $15,000 using money orders could require 15 separate money orders with individual fees. One cashier’s check would be faster and potentially cheaper overall.
4. Security and Trustworthiness
Both options are safer than personal checks because the money is prepaid or guaranteed.
However, cashier’s checks are generally seen as more secure because:
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They’re issued directly by banks
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They include advanced security features
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The bank guarantees the funds
Because of this, sellers often prefer cashier’s checks for expensive purchases.
That said, both money orders and cashier’s checks can be counterfeited, so recipients should always verify them.
5. Speed of Access After Deposit
Cashier’s checks typically clear faster.
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Banks often make part of the funds available within one business day
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Money orders may take longer, depending on the issuer
This makes cashier’s checks more convenient when the recipient needs fast access to the money.
6. Replacement if Lost or Stolen
Both can be replaced if lost but the process takes time.
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Money order replacement: Often 30 days or more
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Cashier’s check replacement: May take up to 90 days
Keeping your receipt is essential for both.
Without proof of purchase, recovering your money can be difficult.
Similarities Between Money Orders and Cashier’s Checks
Despite their differences, they share important benefits:
1. Safer than personal checks
They don’t bounce due to insufficient funds.
2. Protect your bank account information
They don’t reveal your account number like personal checks do.
3. Widely accepted
Most landlords, businesses, and sellers accept both.
4. Hard to cancel after payment
Once cashed, recovering funds is extremely difficult.
When Should You Use Each Option?
Use a Money Order if:
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You need to send less than $1,000
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You don’t have a bank account
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You want a low-cost payment option
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You need something quickly from a local store
Good for: rent, deposits, or small purchases.
Use a Cashier’s Check if:
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You’re making a large payment
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The recipient requires guaranteed funds
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You’re buying a car or home
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You want faster processing and higher credibility
Good for: major purchases and business transactions.
Important Scam Warning
Be cautious if someone gives you a cashier’s check or money order and asks you to send money back.
This is a common scam. The document may look real, but it can bounce later after you’ve already sent money.
Never send money back unless you’re absolutely certain the payment is legitimate.
Other Payment Options to Consider
Depending on your situation, these alternatives may be easier:
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Debit card
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Credit card
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Bank transfer
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Wire transfer
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Online payment apps
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Personal check
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Cash
Each option has its own pros and cons.
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