A cashier's check and a money order are both forms of payment that can be used instead of cash or personal checks, but that's where the comparisons stop. A cashier's check is issued by a bank, are available in higher dollar amounts, are considered more secure than money orders, and the fee is more than a money order.
There's often no limit on a cashier's check, provided you have the money for it. Some banks do impose a maximum amount if the check is ordered online. This limit can range from $2,500 to $250,000 per check or more.
A cashier's check is safer than a money order because it's backed by the financial institution that issued it. A cashier's check is filled out by the bank, so the funds can't be cashed by anyone other than who it was issued to. Money orders, on the other hand, carry extra risk.
Just like personal and cashier's checks, money orders are secure forms of payment, representing an amount of money. ... Money orders work in the opposite of checks – you exchange money (typically cash) for a piece of paper that represents that amount of money.
Fees for a cashier's check
Cashier's checks typically cost about $10-$15. Some banks waive the fee for certain account holders, so ask your bank. For example, Bank of America charges $15 for a cashier's check, but waives the fee for account holders who meet certain balance requirements.
Here's what you need to know about using cashier's checks and how to get one. A cashier's check is written in the bank's name rather than yours and signed not by you but by a teller, which means that the bank is guaranteeing its payment.
Scams involving fraudulent cashier's checks are common, with many victims losing thousands of dollars.
Money orders are generally easier to buy, but cashier's checks are more secure. ... The safety factor makes cashier's checks the better choice if you need to make a large payment, say, for a car or boat. In some cases, a cashier's check may be your only payment option.
A money order functions much like a check, in that the person who purchased the money order may stop payment. Money orders are readily accepted and converted to cash and are often used by people without access to a standard checking account.
A money order would need to be deposited before 10:00PM local time with a teller at a branch or at an ATM to count for that business day. The funds would be available for next business day withdrawals, and to pay checks and purchases that post to your account the next night.
You need to send money securely. Unlike checks, money orders don't include your bank account number, and they help ensure that only the recipient can use it, unlike mailing cash.
A money order is a paper document, similar to a check, used as payment. You buy a money order by giving cash or other guaranteed funds to a cashier, plus a fee for the service. They print out the order, you fill out some information, and send or give it to whomever you're doing business with.
Cashier's checks are signed by the bank while certified checks are signed by the consumer. Cashier's checks and certified checks are both official checks issued by a bank. ... The difference is that cashier's checks are drawn on the bank's account and certified checks are drawn on the check writer's account.
Cashier's and government checks, along with checks drawn on the same financial institution that holds your account, usually clear faster, in one business day.
Cash Does Not Include
When a customer uses currency of more than $10,000 to purchase a monetary instrument, the financial institution issuing the cashier's check, bank draft, traveler's check or money order is required to report the transaction by filing the FinCEN Currency Transaction Report (CTR).
Are money orders safe? Money orders are generally a safe alternative to cash or checks, since only the payee will be able to cash or deposit it for the amount printed on the document. As long as you keep your receipt, you'll be able to track your payment and recover any funds if it's lost, stolen or damaged.
The receipt of the money orders triggered an obligation to file IRS Form 8300. Pursuant to the IRS Regulations, businesses who receive “cash” payments in excess of $10,000 need to report the funds received.
If you run a legitimate business and you deposit $10,000 - $25,000 each month (revenue) into your bank account and you have been doing so month to month — the bank and the IRS are both aware of it. There is no problem and no red flags arise.
A money order is essentially a prepaid piece of paper, similar to a check, that you get in exchange for cash. You can use them to send people money, and recipients can easily deposit them into their bank accounts. ... A cashier's check is similar to a money order, but is issued by a bank and requires a bank account.
Advantages of Money Orders
More secure than cash, personal checks and maybe even card payments. With money orders, the payer and the payee don't need banks or bank accounts. People without bank accounts can also use money orders to pay monthly bills.
If the buyer for your used car pays via a check or money order rather than cash, accept only the exact amount of the negotiated sale price for the vehicle. ... In addition, to be safe, it's a good idea to request a cashier's check for the money that's drawn from a local branch rather than a personal check.
Compared to personal checks, cashier's checks and certified checks are generally viewed as more secure and less susceptible to fraud. ... Cashier's checks are generally regarded as the safer bet since the funds are drawn against the bank's account, not an individual person's or business's account.
The bank's information, including the bank name, account number and routing number should be listed on the front of the check. Cashier's checks may also include watermarks to identify them as legitimate financial instruments.
If you have an uncashed cashier's check, and you are the check purchaser, visit the issuing bank to request a refund. ... In most cases, you must complete an affidavit before the bank will issue a refund for the check.