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There are many different times when a personal check won’t cut it, such as a deposit on a new rental property or the purchase of a car. Many sellers or landlords will require certified funds. That is where money orders or cashier’s checks come in. But what is the difference between a money order and a cashier’s check? We review the similarities and differences below.
The main similarity between a cashier check and money order is that both are certified funds. Both are cashed like a personal check, the recipient of the funds will deposit it just like a check. It is also a possibility to cash the payment at a bank and receive cash back in that moment.
As mentioned above, both are certified funds, this makes it safer for the recipient. In essence, these types of payments are much less likely to bounce. However when it comes to a money order vs. cashiers check, cashiers checks are considered more legitimate. More on that later.
Money orders and cashier’s checks do not contain your checking account number. This, in turn, makes them safer than personal checks, which put all of your banking information on full display. This may be especially important if the recipient of the order or check is someone you don’t know well or don’t trust.
Regardless if it is a money order or cashier’s check once the recipient cashes the check the funds are in their hands and you will be out of luck. You could try and cancel either the money order or cashier’s check, but the process is difficult and rarely successful.
There are a list of differences between cashier’s checks and money orders. Including, where to get them, their perception of trustworthiness, price, and fund availability.
So in the end what is the difference between a money order and a cashier’s check? In simple terms, if you have access to a bank account and need a larger sum of money, a cashier’s check is the way to go. On the other hand, money is easier to obtain if you need a small amount of certified funds. Either way, they both serve a purpose when a personal check or online transfer isn’t available.