Cashier’s Check vs Money Order Difference 101: A battle conducted by depositors is protecting their checking accounts from fraud & financial loss. With the risk of credit skimmers, check cashing scams, and many other forms of dangers threatening one’s checking account security, many people are turning to cashier’s checks and money orders to seek a safer form of payment over traditional checks and debit cards.
In this post, we’ll differentiate the key differences between a cashier’s check and money order (and when it’s appropriate to use each one). See below for more info regarding the difference between a cashier’s check vs money order.
Cashier’s Check vs. Money Order Difference
One of the key differences between a cashier's check vs money order is how they’re obtained and how much money they can be used to process. Even though get a money order at almost anywhere you go, you must go to a bank, credit union or other financial institution to obtain a cashier’s check. For this reason, cashier’s checks are considered to be more credible forms of payment. Cashier’s Check vs Money Order Cashier’s Check vs Money Order
The following table provides a quick comparison between the two payment types so you can understand the other differences: Cashier’s Check vs Money Order Cashier’s Check vs Money Order
|Cashier’s Check vs. Money Order|
|Cashier's Check||Money Order|
|Cost||Up to $10||Up to $5|
|Requirements to Purchase||ID||ID|
|Limit of Check Amount||No Limit||$1,000|
|How To Get||Financial Institutions||Check-cashing locations
|When To Use||For Payments Over $1,000
Situations Requiring More Security
|If You Don’t Have A Checking Account
For Mailed Payments
To Prevent Bnced Checks
To Avoid Using Personal Checks
To Send Money Overseas
|Where It's Accepted||Banks
When To Use a Cashier’s Check vs Money Order?
Cashier’s checks and money orders might seem interchangeable and fit each situation, but depending on the situation, one form of payment is more useful than the other.
It’s best to use a money order when: Cashier’s Check vs Money Order
- You need to mail a payment and want to avoid sending a check or cash.
- You're on a tight budget and want to prevent bouncing a check.
- You’re conducting a transaction or exchanging money with someone you do not know well enough and would rather not provide them with a personal check.
On the other hand, a cashier’s check is a better option when:
- The total payment amount exceeds the cap for a money order.
- You prefer the heightened security of a Cashier’s Check vs Money Order.
For example, it might be a good idea to send money via a money order to pay for something you’re purchasing by mail from a stranger. A cashier’s check is a great option when you need to make a down payment on an apartment/car, etc. Cashier’s Check vs Money Order
Do keep in mind that both cashier's checks and money orders can be forged, so it’s important to treat them with the same scrutiny as you would any other form of payment such as cash, debit card, credit card, etc. Even though both cashier’s checks and money orders are generally accepted, not all businesses and individuals accept them, so be sure to verify that your desired form of payment will be accepted before you attempt to use it. Cashier’s Check vs Money Order
If you're iffy about sending payment for whatsoever reason, definitely consider a cashier's check or money order! Other than that, I would suggest using a credit card for all of your purchases. Ever since I've gotten my credit card, I have not touched/used my debit card unless if it's to deposit. Using a credit card is more secure than using your debit card - your debit card is direct access to your checking account. it You can see a full list of the best credit cards here. If you're interested in earning extra income, be sure to check out our list of the best bank deals & bonuses! Be sure you brush up on what a hard pull or soft pull is before opening an account as well!