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

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Cashier’s checks and money orders are both secure payment methods, but they serve different purposes. Cashier’s checks are typically used for larger transactions and are backed by a bank, offering added security. Money orders, on the other hand, are for smaller payments and can be purchased at places like grocery stores, banks or at the post office. Here’s a closer look at the key differences between cashier’s checks vs. money orders. 

Quick Comparison Between Cashier’s Checks vs. Money Orders

What Is a Money Order?

A money order is basically a prepaid check, meaning the funds are guaranteed.

• How it works: You can purchase a money order at retail stores, convenience stores, grocery stores and USPS. When you purchase a money order, you pay the face value and a fee. Funds can be paid via debit card or cash. You will have to fill in the recipient’s name, and they will cash it like a check. 
• Fees: Fees vary but can range between $1 and $5.

Money Order Limitations To Know

• Money orders are capped at $1,000.
• Large transactions may require multiple money orders.
• Fraudsters often exploit money orders for scams.
• If lost, you can’t stop payment, but you may be able to get a replacement.

What Is a Cashier’s Check?

A cashier’s check is a secure form of payment issued by a bank and backed by its own funds. It’s typically prepared after the amount is withdrawn from your account.

• How it works: At the bank, you prepay the funds to guarantee the cashier’s check. The bank stands behind the official check. The check can be cashed or deposited.
• Fees: The fee is $5 to $15 and is dependent on the bank. The fees can be waived depending on your account status. 

Cashier’s Checks Limitations To Know

• Cashier’s checks are usually only issued by a bank or credit union.
• It may take time to replace a cashier’s check.
• Scammers sometimes use counterfeit cashier’s checks to defraud others.
• Funds may not clear instantly for the recipient.

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

Cashier’s checks are generally more secure than money orders. They are issued by banks and are harder to counterfeit. Cashier’s checks are generally reserved for larger transactions and are traceable if they are lost. 

Money orders are generally for smaller payments and can be more susceptible to theft if the recipient’s name is left empty. 

Lost Your Money Order or Cashier’s Check? Here’s What To Do

Item	What to Do	Replacement Time
Money order	-Contact the issuer -Provide a receipt -Fill out a claim form	Can take 30 to 60 days or longer to process
Cashier’s check	-Report the loss to the bank -Requires a declaration of loss -Can be a waiting period	Requires a 90-day hold for replacement

When To Use a Cashier’s Check vs. Money Order

• Use a money order: If the payment amount is less than $1,000. Money orders are for small-to-medium payments and if you want a more affordable option with minimal fees.
• Use a cashier’s check: If you have a large transaction like payment for a house or car. Cashier’s checks are for larger payments that are secured by the bank, or for large transactions that require an official payment method.

Final Takeaway: Choose the Right Payment Method for Your Needs

Cashier’s checks and money orders both offer safe, prepaid payment options — but they serve different needs. Once you’ve figured out how much you’re sending and how quickly the payment needs to clear, choosing between them becomes simple.

Whichever option you choose, be sure to store it securely and understand the replacement process in case it’s lost. And don’t forget to compare fees — they can vary based on where you buy them.

Cynthia Bowman contributed to the reporting for this article.

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