Money Orders: Pros and Cons
There are pros and cons to using a money order. Before using one, first, weigh the advantages and disadvantages.
Pros:
- A money order does not require a bank account to transmit or receive.
- Money orders are very common.
Cons:
- After cashing (or losing) a money order, it can be difficult, if not impossible, to get your funds back, even if it was the result of a scam or fraud.
- If purchased with a credit card, interest and cash advance fees may apply.
How much will a money order cost?
Each money order carries a small fee, which can be as little as $1 at some check-cashing companies and services. The US Postal Service charges $1.45 for money orders up to $500 and $1.95 for orders between $500.01 and $1,000. At a retail bank, money orders can cost up to $5.
Depending on where you take it, charging an MO’ can cost you. Check cashers, convenience stores, and retailers often charge a fee. However, you can deposit a money order into your bank account for free and generally cash it for free at the issuing institution. For example, you can collect a USPS MO’ at any post office for free. If they have enough cash on hand, some rural letter carriers can collect USPS money orders on their routes. How Long Is A Money Order Good For?
Money Order vs. Cashier’s Check
Some recipients accept money orders and cashier’s checks. This is because both types of payment are guaranteed, albeit in different ways.
Buy a money order from an issuer that accepts guaranteed payments: MO does not bounce.
The bank initially checks to see if the buyer has enough money in their account to cover the payment before accepting a cashier’s check. Subsequently, the money is transferred from the payer’s account to the bank’s account, and a cashier’s check is issued with the payee’s name and the payment amount completed. To access this feature, you must be a bank customer of the issuing bank.
Alternatives to Money Orders
Money orders are commonly used for payment when the payee is not set up for cash receipts. In some cases, personal checks, debit cards, credit cards, and even online payment apps can be accepted.
Money orders, on the other hand, differ slightly from these alternatives. Unlike card or electronic payments, the recipient of a money order does not require any specific technology to receive an MO’. Also, unlike checks, money orders do not bounce.
How long does it take to get a money order?
Money orders should arrive within a few days in most cases. Unfortunately, this may take longer on weekends or holidays. As a result, please allow at least 14 days before expecting any problems with the money order.
What is a money order in scams?
In the most basic form of money order payment fraud, the thief sends a fake MO to purchase products from you. The scammer will use the counterfeit money order to buy anything from you on services like Craigslist, Let It Go, or another online shopping site. You deliver the merchandise and deposit the MO’. If it is determined to be a fake, you will be left without the item or money.
How long does it take to clear a money order?
If the order is deposited into a bank account, it may take a few days for the funds to be available.
Conclusion
Money orders are a convenient way to transfer and receive money. These are widely accepted payment methods, never expire, and can be easily replaced if lost or stolen.
Money orders, unlike checks, don’t bounce because they’re prepaid, making them a safe way to make purchases, pay off debt, or send money through the mail. Simply complete all fields on the money order and print legibly to ensure it is not returned.