Money Order vs Cashier’s Check: What is the Difference?

Cashier's checks and money orders are a solid alternative to cash, credit cards, or personal checks for transactions. In some cases, you may use cashier’s checks and money orders simply because it’s more convenient for you, and in other cases, it may be a merchant requirement.

While these two payment options are somewhat similar, there are some notable differences that set them apart. Read on for our full money order vs check comparison guide — unique features, costs, security, use cases, and more.

What Is a Cashier’s Check?

A cashier’s check is a paper check issued by a bank, typically to an individual or a business, with the customer paying the bank the check's value and the bank guaranteeing the payment. The check is backed by the bank’s own funds, but the issuer withdraws the money from the client’s account in advance. Therefore, unlike personal checks, which cannot be cashed unless the payer has sufficient funds in the account, a cashier’s check is guaranteed not to be rejected. This means that the person you want to pay is guaranteed to receive the money.

What’s more, cashier’s checks undergo additional security checks and are signed by the bank’s representatives upon issuance. This feature makes the payment method a great option for large transactions, as well as for any scenario where there is a risk of fraud. All these features make cashier’s checks a reliable and safe payment option compared to cash or personal checks.

What Is a Money Order?

A money order is a prepaid paper payment that allows you to transfer money to an individual or a company securely and inexpensively. The issuing bank receives the face value of the money order, which means that it cannot be rejected. Therefore, the recipient can always be sure that the money order is valid for the specified amount.

Money orders are designed for small purchases and everyday transactions. They are usually limited to $1,000 or less, with the maximum depending on where you buy them. Each money order has a unique number that can be used for tracking by both the sender and the recipient.

Side-By-Side Comparison: Cashier’s Check vs Money Order

Cashier’s checks and money orders are alike in that they require upfront payment and are considered secure payment methods. However, there is still a significant difference between a cashier's check and a money order. Generally, when comparing a money order vs a cashier’s check, the main distinction lies in purpose, price, and fees.

Cashier’s checks are more expensive and harder to buy — they cost up to $10, while money orders are typically priced between $0.35 and $5. Another important difference between a money order and cashier’s check is that the latter are more secure, which is often what makes them the better choice for when security is an issue. Cashier’s checks are typically used for large purchases that may be inconvenient to pay for in cash.

Money orders, on the other hand, are not guaranteed by the issuing financial institutions and can be purchased even without an active bank account. That is, money orders can be purchased in stores, pharmacies, post offices, gas stations, and so on. A money order can be purchased using cash, a bank card, or a traveler’s check.

When to Use a Money Order and Cashier’s Check

The key point revealed by comparing a money order vs cashier's check is that the latter is more suitable for large and expensive purchases, while money orders are great for small and inexpensive ones. With that in mind, here is a visual comparison of cashier’s check vs money order in terms of use cases.

Fees for Money Orders and Cashier's Checks

Cashier’s Check Fees

The cost of cashier’s checks varies depending on a number of factors, including the issuing bank and the situation. Here’s how much it costs to buy a cashier’s check at the largest US banks.

• Chase — $10 or free (depending on account type);
• Bank of America — $15 or free for Preferred Rewards customers;
• Wells Fargo — $10 (when purchased in-branch) or $18 (when purchased online);
• Capital One — $10 (when purchased in-branch) or $20 (when purchased online);
• U.S. Bank — $10;
• Huntington Bank — $6.

Money Order Fees

The cost of money transfers varies depending on the purchase location, amount, and target region of the payment. If we are talking about international transfers, then better be prepared for additional costs. Here’s how much it costs to buy a money transfer from different providers.

• U.S. Bank — $5;
• Chase Bank — $5;
• Post Offices — from $2 to $2.9 (depending on the size of the money order);
• Walmart — less than $1.

As you can see, money transfers are quite cheap, which is one of the main advantages of this payment method. However, given the relatively small amount you can transfer this way, you may need to purchase several money transfers and pay for each one separately.

Where to Purchase Cashier’s Checks and Money Orders?

As we have already stated, the difference between a money order and a check is the way you can purchase one. While you can get money orders at stores, post offices, gas stations, pharmacies, and so on, checks can only be purchased at banks or credit unions.

What is more, some banks issue cashier’s checks only to their clients. If this is not the case, you can buy a cashier’s check in person at a branch or online through the bank’s website. You will be required to provide a passport and indicate your name, the amount of the check, and the account for withdrawing money.

Which Is More Secure: A Money Order or a Cashier’s Check?

Generally, when comparing a money order vs bank check, we can conclude that both payment methods are safe, reliable, and have their uses. However, cashier’s checks are still considered a bit safer for two main reasons — bank guarantees and multi-level security systems.

It is important to remember that fraudsters will still try to counterfeit cashier's checks, so it is always a good idea to double-check it with the issuing bank. Keep in mind that you will be held responsible for any losses on a cashier's check. In the case of a money transfer, the merchant may refund your money.