Money orders work in the opposite of checks – you exchange money (typically cash) for a piece of paper that represents that amount of money. You can purchase a money order at several places besides the bank, such as post offices, convenience stores, grocery stores, and more.

Unlike checks, a money order does not pull funds directly from your account. You can use money orders in instances where you may not want to use a personal check, which includes personal information like address, T/R number and account number.

A postal order is not a legal tender, but a type of promissory note, similar to a cheque. A Postal Order is used for sending money through the mail. A money order is an order for a specific sum of money, usually purchased with cash at a bank or Post Office, that can be used to make payments.

A cashier's check and a money order are both forms of payment that can be used instead of cash or personal checks, but that's where the comparisons stop. Cashier's checks are issued by a bank, are available in higher dollar amounts, are considered more secure than money orders, and have higher fees than money orders.

Money orders are generally easier to buy, but cashier's checks are more secure.

Share: A money order is a paper document, similar to a check, used as a form of payment. Typically, it's purchased by prepaying the amount printed on the face of the money order with cash or another form of guaranteed funds.

A money order is a secure way to send money or make a payment — up to $1,000. Many recipients prefer money orders because, unlike a personal check, a money order can't “bounce” and clears almost immediately; therefore, they provide a fast, risk-free form of payment.