The basic steps for each payment method

A check is a written instruction to your bank to pay someone from your account. A money order is a prepaid document you buy at a store or bank, and it works like cash — the recipient can deposit or cash it without needing your account information. Both are safer than sending cash, but they work differently and have different costs.

If you have a checking account and the recipient trusts checks, a check costs nothing to write. If you don't have an account, or the recipient won't take a check, a money order costs a few dollars but doesn't require a bank account. Cashier's checks sit between them — they cost more than a personal check but are may provide by the bank, so recipients treat them like cash.

Key Takeaways

  • A personal check requires a checking account and takes three to five business days to clear, while a money order can be bought anywhere and cashed when ready.
  • Money orders cost between $1 and $5 depending on the amount and where you buy them, while personal checks cost nothing if you have a checking account.
  • You must write a check in pen, include the date, payee name, amount in numbers and words, and your signature, or the bank will reject it.
  • Money orders require only the payee name and amount, but you should keep the receipt until the money order clears.
  • Some landlords, utilities, and government offices still require checks or money orders because they process payments in batches rather than when ready.

How to write a personal check

Start with a blank check from your checkbook. At the top right, write the date in the format your bank accepts — usually MM/DD/YYYY. This date tells the bank when you authorize the payment. A check dated in the future (called a postdated check) will not clear until that date arrives, though some banks ignore the date and process it anyway.

On the line that says "Pay to the order of," write the full name of the person or business receiving the money. Use the name they give you — if they say "John Smith" and you write "J. Smith," the bank may reject it. For a business, write the legal name on their invoice or website, not a shortened version.

In the box marked with a dollar sign, write the amount in numbers only — for example, $150.00. On the line below it that says "dollars," write out the same amount in words: "One hundred fifty and 00/100." If the written amount and the number amount don't match, the bank will use the written version. This is why writing it out matters — it prevents someone from changing $50 to $500 in the numbers box.

In the memo line (usually at the bottom left), you can write what the check is for — "rent," "invoice 2024-156," or "medical bill." This is optional but helpful for your records. Finally, sign the check in the bottom right corner in the same way you signed your signature card at the bank. Use pen, not pencil. A check without a signature is worthless.

How to buy and fill out a money order

Money orders are sold at post offices, grocery stores, Walmart, check-cashing services, and some banks. The cost depends on the amount and where you buy it — a $500 money order might cost $1.50 at a post office but $3 at a check-cashing store. Ask the price before you hand over cash, because you pay upfront.

Tell the seller the amount you want the money order for. They will print a blank form with that amount already filled in. You then write the payee's name on the line that says "Pay to the order of" — use the exact name they gave you, just as you would on a check. Some money orders have a second line for a second payee; leave it blank unless you were told to fill it.

Write your name and address on the line marked "From" or "Purchaser." This is how the recipient knows who sent it if there's a problem. Some money orders ask for your ID number; provide it if asked. You do not sign a money order — the seller does that when they process it. Keep your receipt. If the money order is lost or stolen before the recipient cashes it, you will need the receipt number to report it and request a replacement.

When the recipient receives the payment

A personal check takes three to five business days to clear after the recipient deposits it. During that time, the money is still in your account, and if you don't have enough to cover it, the check will bounce — the bank will reject it and charge you an overdraft fee, usually $25 to $35. The recipient will also be charged a fee by their bank.

A money order clears when ready. The recipient can deposit it like a check, or cash it at most banks and stores. There is no waiting period and no risk of it bouncing, because you already paid for it when you bought it.

A cashier's check (which you learned about in the previous section) also clears when ready or within one business day, because the bank itself guarantees the funds. This is why landlords and title companies often ask for a cashier's check instead of a personal check — they know the money is real.

Common mistakes that cause problems

Writing a check in pencil instead of pen is the most common mistake. Pencil can be erased, so banks reject pencil checks. Use a ballpoint or gel pen in blue or black ink.

Leaving out the date, the payee name, or your signature will also cause the bank to reject the check. If you make a mistake, do not cross it out — start over with a new check. A crossed-out check looks altered and banks will refuse it.

Writing the amount differently in numbers and words — for example, $100 in the box but "Fifty dollars" written out — creates confusion. The bank uses the written version, so the recipient gets $50, not $100. Always make sure both match.

For money orders, the most common mistake is losing the receipt before the money order clears. If it's lost or stolen, you will need that receipt number to file a claim with the issuer. Keep it in a safe place for at least 60 days.

Where checks and money orders are still required

Many landlords still ask for checks or money orders because they process rent payments in batches once a month, not when ready. Utility companies, insurance companies, and some government offices do the same. They may accept online payments, but if you want to pay by mail, they usually want a check or money order, not cash.

If you are sending a payment by mail and the recipient says they accept checks, a personal check is the safest option — it leaves a paper trail, and the recipient's bank records show when it cleared. If you don't have a checking account, a money order serves the same purpose and is just as safe.

Some businesses and individuals will not take a check because they worry it will bounce. In that case, they will ask for a cashier's check, a money order, or cash. If you don't have cash and don't want to buy a money order, a cashier's check from your bank is the next option, though it costs $10 to $15.

Frequently Asked Questions

Can I write a check if I don't have enough money in my account?

You can write it, but the bank will reject it when the recipient tries to deposit it. This is called a bounced check, and both you and the recipient will be charged fees — usually $25 to $35 each. The recipient may also report you to a check verification system, which can make it harder to write checks in the future.

What if I write a check and then change my mind?

You can call your bank and ask them to stop payment on the check before the recipient deposits it. The bank will charge a stop-payment fee, usually $25 to $35. If the recipient has already deposited the check, it's too late — the money has left your account.

Can I use a money order to pay bills online?

No. Money orders are physical documents, so you can only use them to pay by mail or in person. If you need to pay a bill online, use a debit card, bank transfer, or the company's online payment system. Some companies will let you mail a money order, but they will not accept the money order number online.

How long does a money order stay good?

Most money orders do not expire, but some issuers charge a fee if you don't cash it within a certain time — usually one to three years. Check the back of your money order for the issuer's expiration policy. If it expires, you can usually get a replacement by showing your receipt.

What's the maximum amount I can put on a money order?

Most money orders have a limit of $500 to $1,000 per order, depending on where you buy them. If you need to send more, you can buy multiple money orders. The post office allows up to $1,000 per money order, while grocery stores and check-cashing services may have lower limits.