What is the difference between a cashier’s check and a money order? Both are similar in that they are both ways to send money, but there are some key differences. A cashier’s check is issued by a bank, while a money order is issued by a business or government agency. Cashier’s checks are more secure because they are guaranteed by the bank, while money orders can be subject to fraud. Additionally, cashier’s checks can be used for larger transactions than money orders.
What is Cashier’s Check?
A Cashier’s Check is a check that is guaranteed by a bank, drawn on the bank’s own funds, and signed by a cashier. Cashier’s Checks are one of the safest forms of payment because they are backed by the full faith and credit of the issuing bank.
This means that if the issuing bank were to fail, the holder of a Cashier’s Check would still be able to receive payment. Cashier’s Checks are most often used for large or important transactions, such as the purchase of a car or a down payment on a house. Unlike personal checks, Cashier’s Checks can’t be canceled or returned after they have been issued.
This makes them an ideal form of payment for buyers and sellers who want to be sure that they will receive or make payment in full. Cashier’s Checks can be obtained from most banks and credit unions. There is usually a fee involved, but this is typically much lower than the fees associated with other forms of guaranteed payment, such as certified checks or money orders.
What is Money Order?
Money orders are a type of payment order for a pre-specified amount of money. Money orders are usually issued by postal services, banks, and money transfer agencies. Money orders are a convenient way to send money, especially when the sender does not have a bank account or does not want to use a personal check. Money orders can be cashed at most banks and financial institutions. Money orders are also a safe form of payment, as they cannot bounce like a check can. Money orders are typically less expensive than using a credit or debit card to send money. For these reasons, money orders are a popular way to pay bills, send payments, and send money to friends and family members.
Difference between Cashier’s Check and Money Order
Cashier’s checks and money orders are both payment methods that are guaranteed by a bank or financial institution.
- A cashier’s check is a rectangular piece of paper that is counter-signed by a teller and made out to a specific payee for a specific amount of money. A money order is a rectangular piece of paper that is made out to a specific payee for a specific amount of money, but it is not counter-signed by a teller.
- Both types of payments are considered Guaranteed funds because the bank or financial institution has already set aside the funds to cover the payment. The main difference between a cashier’s check and a money order is who guarantees the payment. With a cashier’s check, the bank guarantees the payment. With a money order, the company that issues the money order (usually the post office) guarantees the payment.
- Another difference between cashier’s checks and money orders is how they are used. Cashier’s checks are typically used for large purchases, such as buying a car or paying for tuition. Money orders are typically used for small purchases, such as sending rent to your landlord or making a utility payment. Cashier’s checks and money orders are both convenient ways to make payments without having to carry around large amounts of cash.
Which one you should use depends on the situation. If you need to make a large purchase and want the bank to guarantee the payment, then you should use a cashier’s check. If you need to make a small purchase and want the company that issues the payment to guarantee the payment, then you should use a money order.
Cashier’s checks and money orders are both great options for sending payments, but there are a few key differences to be aware of before you choose which one is right for you. For example, cashier’s checks can be used to withdraw cash from an ATM, while money orders cannot. Make sure you understand the benefits and drawbacks of each option before deciding which payment method is best for your needs.