Money Orders

[my3kids]

How exactly do these work? Someone wants to pay for an auction via money order, but I have never done anything but Pay Pal. Can someone cancel a money order like a stop payment on a check? Do I need to wait for the thing to clear before shipment?

 

[Colinsmom]

Ask specifically for a USPS money order - it cannot be cancelled like a regular money order, and can be traced if it goes missing.

 

[rflorek]

A postal money order is good for tracking, but many people purchase money orders from stores like Wal Mart because they are cheaper than a postal money order (I think Wal Mart charges 45 cents while the post office charge something like 80 cents?).

You can't cancel easily it once it's purchased (Travelers Express who issues most of the non-USPS money orders I receive, charges a $12 per money order tracing fee, and that doesn't even put a stop payment out). WHen you receive it, you treat it just like a check. You can deposit it in your bank, or cash it. You just endorse the back like you would a check. Once it's cleared your bank, the funds are yours (just like a check).

I only accept Paypal and money orders. Most people pay through Paypal, but I still get the occasional money order.

Robyn

 

[Skatermom23]

It isn't easy or worth it most times to put a stop on a MO. I have been buying off of e-bay for years and always pay with a MO, usually a Wal-mart one since they are the cheapest. Although lately, I have been sending personal checks if the amounts are small. My feedback is high enough now that most sellers don't even wait to send my stuff out.

 

[kandmwedding]

And just an FYI, for USPS money orders, your bank is required to make the funds available the next day, but that doesn't mean the item has technically cleared the account yet. I'd wait just like you would with a personal check. Money orders are hard to put stop payments on, but it can be done. They are also easily counterfeited. Treat it like you would any other check.

 

[poohj80]

Since the buyer has to produce cash when purchasing a money order, they are safer than personal checks. I only accept Paypal or money orders.

 

[kandmwedding]

Since the buyer has to produce cash when purchasing a money order, they are safer than personal checks. I only accept Paypal or money orders.

I know that they are safer than personal checks, but working at a bank I can tell you that they are easily counterfeited and can have stop payments put on them, which is why I would treat them like a personal check and wait for them to clear. Just a word of warning because there's a lot of fraud going on lately.

 

[my3kids]

Weird thing is never siad I would take a MO...only PayPal listed so this kind of came out of left field. How long do I need to wait for the MO to clear before I know there will be no trouble? I surely don't want my bank to hit me with a fee for something someone else put a stop on. PayPal is so much easier.....

BTW, for the bankers out there on how long to wait....this is out of state, but not across the country, if that matters.

 

[my3kids]

Oh, and it from a bank, not the post office.

 

[kandmwedding]

Your bank should hear from the bank that issued the money order in no more than 5 days since it's non-local. I'd call them around that time to doublecheck that the money order is not going to be returned and then go ahead and ship the item.