20+ Differences Between Cashier’s Check Vs Money Order(Explained)

Cashier’s checks and money orders may replace cash or personal checks, but that’s where the similarities end. A bank issues cashier’s checks, which come in larger quantities, are more secure than money orders and cost more.

A money order may be obtained from a statement cashing shop, post office, grocery store, and other locations. The charge is cheaper than a cashier’s check. A money order may be obtained from a check cashing shop, post office, grocery store, and other locations.

In This Article

Comparison Between Cashier’s Check Vs Money Order

Parameter	Cashier’s Check	Money Order
What it is	You can obtain a cashier’s check from a bank, which is also the location where you can purchase one of these checks. You can get a cashier’s check if you go to a bank. If you go to a bank, you can receive a cashier’s check.	Customers may purchase money orders from various businesses, including but not limited to post offices, retail stores, check cashing companies, financial institutions, and other sorts of businesses and organizations.
Bank Account	The first item you will need to receive a cashier’s check is a bank account only in your name. In addition, this account must be in good standing.	If you want to use a money order, you may do so even if you do not have a bank account since having any form of a bank account is unnecessary. To put it differently, it can be said that you may still do so if you wish to utilize a money order but don’t have a bank account.
Security	A cashier’s check is said to have a higher level of security than a money order since it has several levels of protection, unlike a money order, which only has one layer of protection.	A cashier’s check is thought to provide a higher degree of protection than a money order, so the latter provides a lower level of protection overall.
Transaction	When dealing with greater quantities of money, it is recommended that a cashier’s check be used as the payment method rather than a personal check since cashier’s checks are larger than personal checks. Cashier’s checks are larger than personal checks.	If you are dealing with a monetary quantity that is not extremely urgent, you may find that utilizing a money order to handle the transaction is to your advantage. This is due to the convenience with which the transaction may be carried out.
Requirements	Before you may order a check, you must establish a banking relationship with a certain kind of financial institution to fulfill the prerequisites. This is essential since you will be responsible for covering the cost of the check.	If you want to make your purchase at a store, it is not necessary to have a bank account to carry out a transaction to make your purchase. You may use cash, a credit card, or even a gift card.
Appropriate usage	When the sum being paid is more than one thousand dollars or when the circumstances need a higher level of security.	Suppose one doesn’t have a bank account. In that case, they may want to consider utilizing a money transfer service to make payments that are sent out, prevent checks from being returned unpaid, avoid using personal checks, and send money to nations outside of the United States.

Major Differences Between Cashier’s Check Vs Money Order

What exactly is a Cashier’s Check?

One kind of bank-issued check is known as a cashier’s check. A money transfer is not the same as a certified check, which a bank endorses as a guarantee that there is enough money in the account to fulfill the amount owed.

A cashier’s check also differs from a personal one in that a bank official must sign it before it can be cashed since the money comes directly from the bank’s account.

Key Differences: Cashier’s Check

Visit a bank, the institution where it was first issued, which also serves as the access point for obtaining the card.

Having the backing of a reputable and well-established financial institution

It is attainable in amounts ranging from very little to enormous, in addition to all between those two extremes.

The charge may vary anywhere from $5 to $10, depending on the specifics of each transaction.

Using a check as a payment method is often seen as more trustworthy than a money order, especially in most situations.

The adoption of this system might be beneficial to transactions on a large scale as well as those carried out between individuals.

What exactly Is A Money Order?

Personal checks are riskier than money orders. You may also receive them from the USPS, convenience shops, drugstores, grocery stores, and check-cashing firms. These identical businesses will cash or deposit money orders they’ve issued.

Money orders may be purchased using cash, a debit card, or traveler’s checks. Credit cards and personal checks aren’t accepted. Credit card purchases may be considered cash advances. Money orders are fee-based but cheaper than cashier’s checks.

Key Differences: Money Order

Acquired from several venues, including post offices, retail stores, check cashing businesses, and banks.

Backed by the store that first sold it to you as the original purchaser.

The maximum amount that may be spent is either one thousand dollars or less, but this number might be lower depending on where it is acquired.

A bank account is not necessary to hold this job. The pricing range often falls between one dollar and two dollars.

This kind of check has less security than a cashier’s check.

Useful for dealing with a variety of transactions, including those that are carried out through the mail and others that are on a smaller scale.

Contrast Between Cashier’s Check Vs Money Order

Feature:

Cashier’s Check- The recipient will get a blank cashier’s check from the bank, after which they will sign their name on the check-in format required for cashier’s checks, and the bank will then send the check to be cashed.

Because of this, the check may only be cashed by the person who has been expressly given permission to do so in the authorization letter. No one else is permitted to pay the check.

Money Order- It is against the law to leave the “Pay to” line on a check blank since this enables the check to be cashed by anybody.

This is because leaving the line blank allows the check to be cashed by anyone. This is because if you leave the line blank, it will be feasible for anybody to cash the check.

It can be used in the following:

Cashier’s Check- Checks can be cashed at diverse places, including grocery shops, small stores, banks, credit unions, and even enormous retail behemoths like Walmart.

A handful of these businesses are even prepared to accept customers paying with currencies from other countries. All of these enterprises, along with any more that may exist, are impacted by this, in addition to the other companies operating in this industry.

Money Order- Checks may be cashed at a broad range of distinct establishments, including the United States Postal Service, grocery shops, convenience stores, credit unions, and banks, to mention some of the available choices to customers.

Termination:

Cashier’s Check-In, although there is no fixed cutoff date, most financial institutions provide a window of time within which clients may be certain that their money will be made accessible to them.

The opportunity window describes the span of time during which circumstances are ripe for taking advantage of something.

Money Order- There is no date on which they become invalid; however, the authority that issued them may require a charge to be paid to cash them if they are more than one to three years old.

Although there is no date on which they become invalid, there is no date on which they become invalid. Although no expiration date is specified, they will eventually lose their force.

Frequently Asked Questions (FAQs)

Q1. Which one of these, a money order or a cashier’s check, is more affordable?

In most cases, the fee for money orders is lower. Money orders may be purchased at Walmart for a maximum of 88 cents for quantities up to $1,000 with a valid government-issued picture ID.

These prices are quite viable when compared to those offered by similar businesses in the sector. The United States Postal Service levies fees ranging from $1.25 to $1.76 per item, depending on its weight.

Q2. How quickly can a cashier’s check be cashed once it has been written?

In the United States, no predetermined date serves as the cutoff for cashier’s checks. Nevertheless, the availability of cash in relation to checks is sometimes only guaranteed by certain organizations for a certain amount of time.

If the cashier’s check is about to expire, you should contact the bank that originally issued the check to find out the process it will go through.

Q3. If you want to send money over the mail, how much may you send?

An individual may buy a money order from the post office for up to $1,000. Cashier’s checks and money orders may be purchased in increments of $1,000.

Every day’s purchase of more than $3,000 in money orders requires a form and photo ID. Even if the money orders are purchased from separate post offices, you must still complete the form and provide identification.

Q4. Are cashier’s checks and money orders equally safe forms of payment?

In either case, the payee may rest comfortably that they can access the money that was agreed upon (which means that it won’t bounce back), and neither mode of payment divulges your bank account details to the payee.

Because they often have additional security elements to deter fraud, cashier’s checks provide additional protection against fraudulent activity.

Q5. After being cashed, does it not take long to clear checks drawn on cashiers?

Cashier’s checks might be useful in financial transactions that need prompt action because of the importance of avoiding delays. The money is generally accessible immediately and, in most cases, the next business day after the transaction has been completed.

If you wish to carry out a big financial transaction, you should consider using a cashier’s check since it is likely to be the way that is both the quickest and the safest option accessible to you.