While money orders are cheaper and have low limits, cashier’s checks have a high fee and no limits.
Are you struggling to choose between Money Order vs Cashier’s Check?
Well, don’t worry. In this in-depth comparison of Money order vs Cashier’s check, I will compare both payment methods in detail. I will also talk about Money order vs cashier check cost, limits, and which one is best suited for you. So, stay with me till the end.
Let’s start by finding out the obvious Is a cashier’s check and money order the same?
Check out Cashier’s check vs Certified Check
Is A Cashier’s Check And Money Order The Same?
No, Money orders and Cashier’s checks are not the same. They are quite different and serve different purposes.
Though, money orders and cashier’s checks may seem like the same thing. However, they are completely different. Because cashier’s checks are backed by financial institutions while money orders are backed by stores. They have differences in structure, security, fees, and limits.
So, in no way money orders and cashier’s checks are the same thing. But What are the differences?
Money Order Vs Cashier’s Check
Here is a detailed comparison table between Money order vs Cashier’s check.
| Comparison Factor | Money order | Cashier’s checks |
| Definition | Money orders are a prepaid form of payment issued by stores and money transfer services. | Cashier’s checks are pre-paid checks issued, signed, and payment guaranteed by financial institutions. |
| Issued By | Grocery Chains, Western Union, MoneyGram, Post offices, gas stations. | Only banks and credit unions can issue a cashier’s check. |
| Fund | Paid in advance. But requires a fee to cash it. | Cashier’s checks are paid in advance. Fees are not always required to cash them. |
| Special Security Features | Watermarks and special tracking numbers. | Special watermark and bank stamp along with the signature of a bank representative. |
| Security | Not as secure as a cashier’s check. | More secure. |
| Availability | Widely available in grocery shop chains, gas stations, and post offices. | Available in almost all banks or credit unions. |
| Acceptance | Not all businesses accept it. Best suited for personal use. | Widely accepted anywhere for any purpose. |
| Cost | It’s quite cheap. Usually, ranges between $0.5-$3. However, the Cost of buying and cashing depends on the store. | Usually, banks charge $7-$20 for a cashier’s check depending on the check amount. |
| Convenience | More convenient. As they are easy to purchase. | Not convenient for everyone. As banks are highly regulated. |
| Requirements | Valid ID is a must and recipient details should match his/her ID. | Must need a valid ID to purchase and cash one. |
| Limit | The limit is low. Typically, the highest limit is $1,000. | Usually, there is no limit. But some banks might impose a limit. |
| Tracking | Online tracking is possible in most cases. | No tracking is possible. |
| Cashing | Can be cashed at any supported store. To cash it a valid ID is required. | Can be cashed at any bank, or credit union with a valid ID. Online money apps and check cashing stores also cash it. |
| Cancelation | Easy to cancel. Cancelation can be done both online and offline. | Can not be canceled once paid. But can be canceled if lost which can be pretty complex. |
| Refund | Refunding a canceled money order can take 30-60 days at max. | Not easy to get a refund if the check is lost. Might need to wait for 90 days. Even if it’s not lost then it might take 30 days for a refund. |
| Reliability | Quite reliable for smaller amounts. | It can be quite hard to forge a cashier’s check for special security features. But it’s easy to verify it. |
As different banks and money transfer services have different regulations, So, some of the above information might vary depending on your location. So, Why would a person use a money order instead of a check? Or which one is better?
Which One Should You Choose?
Between money order vs cashier’s check which one should you choose completely depends on your purpose. In case you are going to pay a big sum and want better security then you should choose cashier’s check. Otherwise, you should choose a money order.
Money orders serve personal usage while cashier’s checks serve professional usage. It’s because cashier’s checks are more secure and businesses accept them more. On the other hand, money orders are quite cheap but the limit is low.
Moreover, money orders are made for sending money to friends and family. That’s why most modern money orders also have an online tracking feature. But cashier’s checks are made to make large payments more securely. So, there is no tracking either.
By now we have found out the differences between money order vs cashier’s check. Now let’s look at some of the related queries.
FAQs
Here are some of the frequently asked questions related to this topic.
Why Use a Money Order Instead Of a Check?
Money orders are safer than personal check because the money is guaranteed by an organization and prepaid. As a result, money orders can not bounce. On the other hand, money order online tracking is also possible. So, it’s safe for both the sender and receiver.
Is a Money Order The Same as a Bank Cheque?
No, money orders and banks are different forms of payment methods and not the same. While checks can be written by anyone with a bank account, money orders are only printed by financial organizations. Though the money order limit is low but it’s more secure than personal checks.
Is Money Order Better than Cash?
Money orders are better than cash if you intend to send it by mail. Because in the way cash can be stolen. However, money orders can not be cashed by anyone except the recipient. Because to cash a money order one needs a valid ID matching the recipient’s details.
Can You Get a Money Order Or Cashier’s Check at the Bank?
Though, you can get a cashier’s check at any bank, money orders are not sold at all banks. They are issued by USPS, Moneygram, and Western Union.
Can a bank give you a money order?
Yes, a bank can give you a money order. But it’s hard to find a bank that sells money orders. They mostly sell cashier’s checks and certified checks. However, banks partnered with Western Union and Moneygram may sell money orders.
In Summary
Both money orders and cashier’s checks are secure forms of payment intended for different purposes. While money order is cheap, convenient, and supports online tracking, Cashier’s checks are more secure and have a higher limit. So, it’s better to choose one according to your needs.
