Private sales - differences between cashier's check and money order

[dave64o]

I'm planning to buy a bass from a fellow TB'er and he is requesting something like a money order for payment.

I've never used a money order or something like that for private sales (I've done PayPal) and I don't know of any reason not to do it so I agreed. I thought my bank does both money orders and also cashier's checks and I confirmed that on their web site. I also tried looking for some description of the differences between them or their advantages and disadvantages but I didn't see anything like that. Any ideas?

Thanks!


EDIT - Moderators, I wasn't sure which forum was the best place to post this, but I thought Misc. since I'm talking about buying/selling gear. If it belongs somewhere else, like Off Topic, please move it as you see fit.

[anonymous38457747]

If you request that the Cashier's check is made out to the seller, than there is no difference. They are both a guarantee of funds with no hidden fees.

Cashier's check is written by the banker using money secured directly from your account. Money order's usually require a sort of "purchase", meaning that you supply the cash and they "hold" it for the recipient of the Money order.

I think this is right

[dave64o]

Just an update since I went to the bank and asked.

According to my bank the only differences were that a money order is written out by the customer and, at least at this bank, there was a $1000 limit. A cashier's check is made out by the teller and has no limit other than the funds available in account it's taken from.

I needed $1075 so ..... cashier's check!

[Thor]

This is correct.

If you go to the bank and get a check or MO, you have
to have an account at the bank. You either pay cash for it
or write a check which they immediately deduct form your account.

If it is under 1000 dollars, you can get an MO, and fill it out yourself. If over, it is a cashier's or bank check drawn
upon the commercial banks account and the bank fills out the
payees you specify.

IF I do not know the person, other than through feedback,
such as Ebay, I will make the check out to the seller
or myself. Pay the the Order of 'Joe Blow or Thor X'.

In the event the deal gets hinky, you can go back to the
bank, endorse the check and redeposit it in your account
without Joe Blow signing it or ever having to send it. Just
extra protection.

If it is a long standing member here, and I know people
that know them, I won't bother, especially for a small amount.

You can also get MO's from convenience stores, the fees are
usually higher.

You can also buy MO's from the US Postal service. Many
personal international transactions can be handled that way,
and they are generally safe for the seller.

Many banks offer MO's for free to accounts that carry
moderate balances. So, no fees.

I like them. I just don't trust Paypal enough to hook them to
my bank account. Given the amount of rampant credit card
fraud going on, and how poorly such information seems to be
secured, you can hardly blame someone for wanting a
bank check or MO.