# Money Orders vs Checks: What You Need to Know as a Consumer
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-19
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Check vs Money Order: Which is Best for Payment?
Meta Description: Learn when to use a money order or a check for payments. Discover the benefits of money orders, such as no bank account needed, lower cost for amounts under
URL: https://financedigest.com/money-orders-vs-checks-what-you-need-to-know-as-a-consumerhtml

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If you are looking to pay somebody and don’t want to pay them using cash, you can use a check or a money order instead. There are differences when it comes to what they cost, where you can buy them, and when you should use one of them over the other. Let’s dive in to understand the differences.

**1) You don’t need a [bank account for money](https://www.financedigest.com/marketmind-banks-are-leaking-money.html "Marketmind: Banks are leaking money") orders**

A check requires both the payee and the recipient to have [bank accounts](https://www.financedigest.com/how-to-compare-business-bank-accounts.html "How to compare business bank accounts"), whereas a money order is a prepaid piece of paper that you will get in exchange for money. [You can use a money order](https://www.plainfinances.com/grow/money-order-near-me/) to send money to somebody or make payments. You can [purchase money](https://www.financedigest.com/6-tips-to-save-money-on-your-next-used-car-purchase.html "6 Tips to Save Money on Your Next Used Car Purchase") orders at banks, check cashing places, post offices, retail stores and more.

**2) You should use a money order if the amount is less than $1,000**

[Money orders are perfect if you need](https://www.financedigest.com/why-the-world-needs-more-women-controlling-the-money.html "Why the world needs more women controlling the money") to make a payment of less than $1,000. You [need to use a check to make payments](https://www.financedigest.com/safe-and-secure-payments-for-customers-what-businesses-need-to-know.html "Safe and secure payments for customers – what businesses need to know") of amounts greater than $1,000. What’s more, money [orders generally cost](https://www.financedigest.com/just-eat-delivers-q3-profit-as-cost-cuts-outweigh-lower-order-volumes.html "Just Eat delivers Q3 profit as cost cuts outweigh lower order volumes") less than checks, especially cashier’s checks. For example, a money order from the [U.S. Postal Service](https://www.usps.com/shop/money-orders.htm) will set you back anything between $1.30 to $1.75 for money orders up to $1,000, whereas cashier’s checks will cost you around $10. Money orders are an inexpensive [way](https://www.financedigest.com/best-ways-to-make-money-online.html "Best ways to make money online") to transfer money or pay bills.

**3) Money orders are easier to replace if they are stolen or lost**

Money orders are easier to replace than checks if they are stolen or lost. All it takes to replace a stolen or lost money order is to [ask for a refund or replacement from the place where you had purchased](https://www.financedigest.com/questions-to-ask-yourself-before-purchasing-an-investment-property.html "Questions To Ask Yourself Before Purchasing An Investment Property") it based on the receipt you had been issued. You may have to incur a fee to replace the money order, but you’ll get it right away. When it comes to cashier’s checks, you’ll [need to request a new check from the issuing bank](https://www.financedigest.com/bank-of-england-still-needs-to-see-the-job-through-on-inflation-pill.html "Bank of England still needs to ‘see the job through’ on inflation: Pill"), and more often than will have to buy an indemnity bond from an insurance company. It may take anything between 30 to 90 days for you to get a new check.

**4) A money [order protects your bank](https://www.financedigest.com/austrian-regulator-orders-system-relevant-banks-to-up-capital-buffers.html "Austrian regulator orders system-relevant banks to up capital buffers") information**

You can use a money order if you want to [protect your bank account](https://www.financedigest.com/midlands-accountants-say-its-never-too-early-to-get-financial-protection.html "MIDLANDS ACCOUNTANTS SAY IT’S NEVER TOO EARLY TO GET FINANCIAL PROTECTION") number, routing number, and even your name. However, a check will always display your name, account number, and routing number. With [financial crimes](https://www.financedigest.com/thwarting-financial-crime-at-every-level-with-the-cloud.html) growing every year, it is always a good idea to be prudent and safeguard your bank information unless you need to share them.

**5) Money orders let you pay with guaranteed funds**

At times, you may not be able to make a payment using a check. For example, if you are renting a house, the landlord may [ask you to pay](https://www.financedigest.com/7-questions-to-ask-before-paying-off-your-mortgage-early.html "7 Questions to Ask Before Paying Off Your Mortgage Early") the security deposit using guaranteed funds. Your options are to pay using a check or a money order. When it comes to checks that are guaranteed, your options are either to use a cashier’s check or a certified check, which are usually more expensive than money orders.

**6) [Money orders can be sent safely](https://www.financedigest.com/your-money-is-safe-but-your-data-might-not-be.html "YOUR MONEY IS SAFE, BUT YOUR DATA MIGHT NOT BE") by mail**

If you [need to send somebody money](https://www.financedigest.com/how-to-choose-the-right-service-for-your-international-money-transfer-needs.html "How to choose the right service for your international money transfer needs") by mail, you may be tempted to send cash. But, sending cash by mail is unsafe, as the envelope may get lost or stolen. However, a money order is just like a piece of paper and has a greater chance of being unnoticed by postal thieves. Moreover, money orders can be encashed by specific recipients only, so they are much safer than sending cash by mail. If the money order is misplaced, lost, or stolen by chance, you will not lose the money and can get a replacement money order using the receipt.

**Brought to you by Paradigm Digital Ltd**


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