Table of Contents
What is the pros and cons of a money order?
Pros and cons of money orders
| Pros | Cons |
|---|---|
| Trackable and safer than cash | Low maximum amounts (often around $1,000) |
| Don’t need a bank account | Fees |
| Can be used internationally | Can be counterfeited or altered |
| Funds are guaranteed | Must be purchased in person |
Why money orders are not safe?
The ability to cash money orders easily means criminals sometimes ask you to send them funds in that form as part of more traditional phishing scams and other schemes aimed at separating you from your money. Many of these could extract payment by check, credit card or electronic transfer as well.
Is money order safe for buyer?
Like a check, money orders are written directly to individuals or companies by name, requiring endorsement and identification to cash them. This makes money orders much more secure than cash, protecting the funds in case of loss or theft.
Can money orders be rejected?
Because money orders are prepaid, they can’t be rejected for insufficient funds and aren’t subject to the fees that come with bouncing a check. Some businesses or people may accept money orders but not personal checks because they don’t want to bother with the risk of a bad check.
How can I cancel a money order?
To cancel a money order, contact the issuer, provide details, attach a copy of the receipt, submit the cancellation form and pay a fee.
Are money orders untraceable?
Giving money to a friend, family member or someone else in need can be an uncomfortable experience for both parties. To avoid the discomfort, you can give anonymously with a money order. The source can be untraceable for the recipient if you don’t include identifying information.
Can a money order expire?
Domestic money orders never expire and they do not accrue interest. Money orders are cashed for the exact amount on the order. You can cash a USPS money order at a Post Office for free. You can also cash them at most banks and some stores.
What are the disadvantages of money orders?
Improvements in money transfers and banking have taken place, and with the advent of the internet, money orders have inherent disadvantages that have become painfully apparent. Money orders are mailed by “snail-mail”. As the word “snail-mail” implies, the traditional method of mailing a letter through the postal system is slow.
What happens if you lose a money order?
Money orders can be lost. It’s a piece of paper and can very much slip by the postal agent. And it can be worry for the merchant you are paying and they will ask you for the money order on time. And you have to get a new money order.
How do money orders work without a bank account?
Money orders make payments easy, even without a bank account. A money order requires just a few pieces of information, including the payee and the amount.
Is it safe to send a money order without a check?
If you don’t have a checking account, a money order can fill in some of the gaps. They are a secure form of payment to send through the mail. Cash in the mail can be stolen, and personal checks include your bank account number, which you may not feel comfortable sharing with the recipient.