The advantages of money orders over cash and check make them preferred or even required in many situations, such as when: Not allowed for mobile deposit by all banks Requires you pay a purchase fee, unlike personal checks Requires an in-person visit to a money order dealer If not, the payment bounces and the recipient is left short-and often pays a bank fee on top of that. Assuming you have a legitimate money order, accepting it as a form of payment is free of risk because the sender has already provided the funds.īy contrast, a personal check is accepted on good faith that the sender’s bank account has sufficient funds or overdraft protection to cover the check. Abraham Lincoln’s postmaster general at the time came up with a solution: money orders.Īlthough personal checks offer similar security benefits, money orders have the advantage of being prepaid. During the Civil War, thieves would rob post offices and delivery runs to grab cash being sent all over the country. This makes money orders much more secure than cash, protecting the funds in case of loss or theft. Like a check, money orders are written directly to individuals or companies by name, requiring endorsement and identification to cash them. In situations where paying with cash, check, or a digital app isn’t ideal-or even viable-a money order might be the best answer. Money orders are an attractive tool for fraudsters, so it’s important to check the visual security features on any money order you receive.Although money orders are generally inexpensive, they almost always involve a purchase fee, and sometimes a redemption fee for the recipient.There are pros and cons to using money orders.You can get money orders at many places like the post office, most banks, and Western Union outlets at CVS, Walmart, and 7-Eleven stores. Money orders offer an easy way to exchange funds safely when paying in cash isn’t practical, using a personal check isn’t accepted or desirable, and when a non-digital payment is required.
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