The main difference: who holds the money and how you get it back
A cashier's cheque is a cheque issued by a bank using the bank's own funds, not yours. You pay the bank the amount you want, the bank writes the cheque in your name, and the recipient deposits it like any other cheque. A money order is a paper document you buy from a retailer or financial institution that works like prepaid cash — the recipient cashes it, and that's the end of it.
The practical difference matters most when something goes wrong. If you lose a cashier's cheque or it never arrives, you can ask the bank to stop payment and issue a replacement — but this takes time and sometimes a fee. If you lose a money order, you can request a refund from the issuer, but only if you kept your receipt and the money order hasn't been cashed yet. Once either one is cashed by the recipient, the transaction is complete and reversal is nearly impossible.
Both are safer than sending cash or a personal cheque, because both may provide the funds exist before the document is issued. Neither one bounces. The choice between them usually comes down to where you're sending the money, how much you're sending, and whether you need a paper trail.
Key Takeaways
- A cashier's cheque is issued by your bank and can be stopped or replaced if lost, while a money order is final once cashed and can only be refunded if you have the receipt and it hasn't been cashed yet.
- Cashier's cheques typically cost $5 to $15 per cheque and work best for large payments like down payments or legal settlements.
- Money orders usually cost $1 to $5 and are widely available at grocery stores, pharmacies, and post offices, making them convenient for smaller payments.
- Some recipients prefer cashier's cheques because they're issued by a bank and carry more weight in legal or financial transactions.
- Money orders leave no connection to your bank account, while cashier's cheques are tied to your bank and create a full record there.
When to use a cashier's cheque
Use a cashier's cheque when you're sending a large amount or when the recipient specifically requests one. Real estate closings, legal settlements, and security deposits often require a cashier's cheque because the recipient wants proof that the funds are may provide and that a bank stands behind the transaction. The recipient can verify the cheque directly with your bank before accepting it.
Cashier's cheques also make sense if you're worried about losing the document in the mail. Because the cheque is tied to your bank account and the bank keeps a record, you can contact the bank, prove you bought it, and request a replacement or stop payment. This protection costs more — typically $5 to $15 per cheque — but it's worth it for high-value transactions.
You'll need to go to your bank in person or call ahead to order one. Most banks issue them the same day, though some may require 24 hours' notice. You'll need to have funds in your account to cover the amount.
When to use a money order
Use a money order for smaller payments, casual transactions, or when you want to keep your bank account details private. Money orders are useful for paying rent to a landlord you don't fully trust, sending money to someone you've just met, or paying a bill to an unfamiliar company. Because the money order is prepaid and not connected to your bank account, the recipient gets no information about your banking details.
Money orders are also practical because they're available almost everywhere — post offices, grocery stores, pharmacies, and convenience stores all sell them. You don't need a bank account to buy one. The cost is low, usually $1 to $5 depending on the amount and where you buy it. You can buy one at any time during business hours without an appointment.
The trade-off is that once the money order is cashed, you have no recourse unless you kept your receipt and the money order hasn't been deposited yet. If the recipient claims they never received it, you'll need to contact the issuer with your receipt number to check whether it was cashed and by whom.
Cost and fees
| Type | Typical Cost | Where to Get It | Processing Time |
|---|---|---|---|
| Cashier's cheque | $5–$15 per cheque | Your bank | Same day or next day |
| Money order | $1–$5 per order | Post office, grocery store, pharmacy, convenience store | when ready |
Cashier's cheques cost more upfront, but the fee is a one-time charge per cheque. Some banks waive the fee for customers with certain account types or balances. If you need to stop payment on a cashier's cheque that was lost or never arrived, expect to pay an additional $15 to $30 stop-payment fee, and the bank may require an affidavit or police report.
Money orders have a lower per-unit cost, but the fee is charged each time you buy one. If you're sending multiple payments, the costs add up. Some issuers charge more for larger amounts — a money order for $500 might cost more than one for $100. The post office, Western Union, and MoneyGram all have slightly different fee structures, so it's worth comparing if you're sending a large amount.
What happens if the cheque or money order doesn't arrive
If a cashier's cheque is lost in the mail, contact your bank when ready. You'll need to provide proof that you purchased it — your receipt or bank statement. The bank will place a stop payment on the original cheque and issue a replacement. This process usually takes 30 to 90 days because the bank must wait to confirm the original cheque hasn't been cashed. You may be charged a stop-payment fee.
If a money order is lost, contact the issuer with your receipt. If the money order hasn't been cashed yet, you can request a refund or a replacement. The process varies by issuer — the post office, Western Union, and MoneyGram each have their own procedures — but generally takes 30 to 60 days. Without your receipt, you have no way to track the money order or prove you bought it, so keeping your receipt is essential.
If the recipient claims they never received the payment, ask them to check with their bank or post office. Cashier's cheques and money orders can be traced by number, but only if you have documentation of the transaction.
Which one leaves a record
A cashier's cheque creates a full record at your bank. Your bank statement will show the transaction, the amount, and the cheque number. This record is useful if you need proof of payment for tax purposes, legal disputes, or your own records. The recipient's bank will also have a record when they deposit the cheque.
A money order creates a record only if you keep your receipt. The issuer (post office, Western Union, or MoneyGram) keeps records internally, but you won't see the transaction on any personal account statement. This can be an advantage if you want privacy, but it's a disadvantage if you need to prove you sent the payment later. Always keep your money order receipt until the transaction is confirmed.
Frequently Asked Questions
Can I cancel a cashier's cheque after I've bought it?
Yes, but it costs money and takes time. Contact your bank and request a stop payment. You'll need to provide the cheque number and amount. The bank will place a hold and eventually issue a refund, but this process typically takes 30 to 90 days because the bank must confirm the cheque wasn't cashed. Expect a stop-payment fee of $15 to $30.
What if someone cashes a money order that wasn't meant for them?
If the money order hasn't been cashed yet, contact the issuer when ready with your receipt and request a stop payment or refund. If it's already been cashed, the issuer can tell you where it was cashed and provide that information to law enforcement, but the money is gone. This is why money orders are riskier for large amounts — once cashed, there's no recovery.
Do I need a bank account to buy a cashier's cheque?
Yes, you need an account at the bank issuing the cheque, and you need funds in that account to cover the amount. You'll need to visit the bank in person or call ahead to order one. Some banks allow online ordering for existing customers.
Can a money order be deposited into a bank account?
Yes. The recipient can deposit a money order into their bank account just like a cheque. They can also cash it at the issuer's location — for example, a Western Union money order can be cashed at any Western Union location, and a postal money order can be cashed at any post office.
Which one is safer to send in the mail?
Both are safer than cash or a personal cheque because the funds are may provide. A cashier's cheque is slightly safer because you can stop payment if it's lost, but the process takes time. A money order is safer in the sense that it's not connected to your bank account, but once it's cashed, you have no recourse. For high-value transactions, a cashier's cheque is the better choice.