Check Vs. Money Order
Money orders can be purchased from the post office or rural route carrier in values up to $1,000. They are essentially a cash equivalent, but can be traced and replaced if they are damaged, lost or stolen. A personal check is a piece of paper issued by your bank that orders a payment of money from you, drawn from your account, to another person or entity. Each method of payment has its advantages and disadvantages but both are more secure than cash, which is untraceable and irreplaceable if stolen.
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Convenience
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Buying a money order involves a visit to the post office. The limited hours the post office is open and need for transportation to get there, make this an inconvenient option for some people. Personal checks are issued by the bank in a book that can be easily carried in a bag or pocket.
Clearing Payments
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If you do not have enough money in your bank account, checks you write may bounce. Many vendors will not accept a personal check for this reason. Many mail order vendors, or vendors on the internet, will delay sending items until your check has cleared, which according to Bank of America, can take up to eleven business days. Money orders are pre-paid, so vendors treat them like cash, accepting payment immediately.
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Security
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While you can trace a money order, and determine whether or not it has been cashed, you still have to pay up front. In the event of fraud, it can take a significant amount of time to receive a reimbursement after an investigation according to the US Postal Service. When you use a personal check you have the power to cancel payment up until the moment the check is deposited or cashed.
Tracking Payments
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Many people have a difficult time keeping track of payments and balancing a check book. With money orders, that isn't a problem. You must have the money up-front to purchase a money order, so there is no risk of overdraft fees from the cashing of a forgotten check, and money orders can't bounce.
International Payments
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Personal checks from US banks are not accepted in many countries. The post office, Western Union and many banks offer international money orders. You make payment in US dollars, and they make the currency conversion. However, according to International Currency Express, Inc., the easiest and safest way to send money internationally is by electronic transfer.
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References
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- Photo Credit check book image by Rob Hill from Fotolia.com
