Cashier’s check vs. money order: What’s the difference?

Cashier’s checks and money orders are two types of prepaid checks. That means their funds are guaranteed and paid in full up front, so they can’t bounce like a personal check can.

You might use a cashier’s check or money order when you need to make a payment but can’t—or don’t want to—use things like a credit card, a debit card, a personal check or cash. But cashier’s checks and money orders aren’t completely interchangeable. They have different limits, availability, fees and more. 

Learn more about the differences between cashier’s checks and money orders, how they work and when you might consider using them. 

Key takeaways

• Cashier’s checks and money orders are prepaid checks that let you make payments without using a credit card, a debit card, a personal check or cash.
• Cashier’s checks and money orders are both paid up front, so they can’t bounce.  
• Some money orders have a limit of $1,000 for domestic payments and $700 or less for international payments. 
• Cashier’s checks typically don’t have limits, so they’re better for larger transactions. 
• Money orders are available at places like banks, convenience stores and post offices.
• Cashier’s checks are generally only available at banks and credit unions, and they might only issue cashier’s checks to their own customers. 
• Cashier’s checks may have higher fees than money orders. 

A cashier’s check gives you a way to make a payment when paying with a personal check, cash, a credit card or a debit card isn’t allowed or doesn’t make sense for the situation. 

You might use a cashier’s check to pay a large amount of money—over $1,000, for example—for something like a down payment on a house or car. 

Cashier’s checks are issued by a financial institution—like a bank or credit union—on behalf of a customer of that financial institution. The person who buys the cashier’s check pays the entire amount up front. Then the bank deposits that amount and issues a cashier’s check to the payee. 

A cashier’s check can be considered safer than a personal check. That’s because it’s paid up front and can’t bounce due to lack of funds in the corresponding account. Plus, only the designated payee can cash the cashier’s check. And cashier’s checks don’t show any of your personal account information. 

You can buy a cashier’s check at a bank or credit union, but you might have to be a customer to do so. You may have to show a photo ID and have the payee’s information on hand. But some banks offer online options for cashier’s checks. Cashier’s checks often have a fee. And if you buy one online, there might be additional fees.

Money orders are another alternative to paying with a personal check, cash or cards. A money order is a prepaid check that isn’t tied to a bank account. And because money orders are prepaid, the funds are guaranteed. So like a cashier’s check, money orders also can’t bounce. 

A money order doesn’t show your account information and can only be cashed by the designated payee. So you might feel more comfortable using a money order if you need to send money by mail, for example. Plus, you can typically use the receipt to track the money order.

Money orders are widely available at places like banks, convenience stores and post offices. When you buy a money order, you’ll need to fill out some information, including the recipient’s name and the amount you want them to pay them. 

Then you’ll prepay the full amount, plus a fee. The recipient can then cash the money order just like they would a check. Depending on where the recipient cashes it, there might be a fee for them, too.

Some domestic money orders, like those issued by the U.S. Postal Service, have a $1,000 limit. And the Postal Service has a limit of $700 or less for international money orders.

Keep in mind that if you use a credit card to buy a money order, your card issuer might consider it a type of cash advance. If that’s the case, you generally have to pay a fee for the money order and may be charged interest on it, too. So it’s a good idea to check your credit card agreement to see what types of transactions are considered cash advances.

Money orders and cashier’s checks share some similarities. For example, both money orders and cashier’s checks are safe, reliable forms of payment.

And because they’re both prepaid up front, they can’t bounce. Cashier’s checks and money orders also don’t show your account information. So you might feel safer sending a cashier’s check or money order through the mail than you would a personal check. 

But there are also some key differences between cashier’s checks and money orders. And when you might want to use a money order vs. a cashier’s check depends on your needs and situation.

When to use a money order

Here are a few examples of situations when you might consider a money order: 

• Small payments: If you’re making a domestic payment of $1,000 or less or an international payment of $700 or less, a money order might be an option. 
• No bank account: Money orders don’t need to be linked to a bank account like personal checks do. So if you need to make a payment and don’t have a bank account, you can use a money order. 

When to use a cashier’s check

Using a cashier’s check might make sense in these situations: 

• Large payments: Cashier’s checks don’t have the limits money orders do. So if you need to make a large payment, a cashier’s check might be the way to go. You could use a cashier’s check for things like putting a down payment on a house, buying a car or paying a security deposit on an apartment. 
• Bank account: Because banks often only sell cashier’s checks to their own customers, you might need to have a bank account to get a cashier’s check. 

Understanding the differences between cashier’s checks and money orders can help you figure out which option makes sense for your situation.  

• Cost: Domestic money orders typically have small fees, ranging from $1 to $5, while international money orders might cost more. Cashier’s checks typically cost around $10 to $15. And if you order a cashier’s check online, there might be additional fees. 
• Availability: Money orders are widely available at places like banks, convenience stores and post offices. Cashier’s checks are typically only available at financial institutions like banks and credit unions. And those institutions might only sell cashier’s checks to their own customers.
• Security: Both cashier’s checks and money orders can be safe payment options. Neither kind of payment shows your account information. And they can only be cashed by the designated payee. However, with a cashier’s check, the payee is typically filled out by the bank when you purchase the check. With a money order, you’ll likely be filling out the payee information yourself. And if you forget to do it right away and the money order is lost or stolen, anyone could put their name on it. 
• Payment limits: Domestic money orders are typically capped at $1,000. And international money orders might be capped at $700 or less. Cashier’s checks usually don’t have limits, as long as you can pay the full amount up front. So if you need to make a large payment, a cashier’s check can be a good option. 

Cashier’s checks and money orders can both be convenient, safe ways to make payments without using cash, personal checks, debit cards or credit cards. And knowing the differences between cashier’s checks and money orders—like their availability, limits, fees and more—can help you understand which option makes sense for you. 

Interested in knowing more about other secure payments options and ways to help protect your money? Check out more privacy and security articles from Capital One.