There are plenty of options to choose from when it comes to sending money, but when making a reliable money transfer, your best bet is to either send a cashier’s check or a money order. Although cashier’s checks and money orders are both used for similar reasons, they differ based on the amount of money sent and how they are issued. Understanding the differences between a cashier’s check vs money order will help you decide how to send money safely for any transaction.
What is a cashier’s check?
A cashier’s check is a check that takes money out of a bank’s funds rather than from a personal bank account. When requesting a cashier cheque in Canada, you will need to pay the issuing bank directly to generate the cheque instead of withdrawing funds from your own personal balance. Once the bank issues the cashier’s check on your behalf, they will likely withdraw the money from your account. Recipients of cashier’s checks get a sense of assurance because they are guaranteed to receive funds that come directly from a bank.
When would you use a cashier’s check?
Cashier’s checks are a good option to use when making large money transfers. You may even find banks that offer cashier’s checks with no upper limits, although some banks will only go up to $250,000 per check. If you are making a more expensive purchase like a new car or a down payment on a house, a cashier’s check may be the best option.
What is a money order?
A money order is a piece of paper that works like a check. Money order slips are prepaid which means the money is withdrawn immediately, unlike checks where the money is withdrawn once the check is deposited by the recipient. Standard money order limits in Canada are typically capped around $1,000 per slip. Whether you need to buy a money order in Toronto or anywhere else in the country, you can purchase a money order in Canada at a local bank, a Canada Post location, or a money transfer service like Western Union.
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When would you use a money order?
A money order can be useful in situations where a reliable and guaranteed form of payment is required, which includes rent payments, transactions with unknown parties, and payments that are sent by mail. Money orders are also useful if you are not able to open a bank account or temporarily cannot access it, as they can be purchased with cash. Learn to get started with yours today.
While money orders are generally reliable, they can still be susceptible to fraud if they are altered or counterfeited. Always purchase money orders from reputable sources, review Western Union’s official fraud prevention guidelines, and keep your receipts and any documentation associated with the transaction for your records.
Money Order vs. Cashier’s Check: Security, Costs, and How They Work
To choose the right payment method for your transaction, here is how both options compare across key factors:
| Feature / Factor | Cashier’s Cheque | Money Order |
| Fraud Security | Higher for large sums: Drawn directly against bank or credit union reserves. | Moderate: Prepaid paper document; safer than cash or personal cheques. |
| Lost or Stolen Items | Requires filing an official “Declaration of Loss” statement and potentially purchasing an indemnity bond. | Can be cancelled or replaced by presenting your original purchase receipt, serial number, and paying a processing fee. |
| Mailing Safety | Safe to send via Canada Post registered/trackable mail with signature required upon receipt. | Safe to send via Canada Post registered/trackable mail with signature required upon receipt. |
| ID Requirements | Requires an active bank account and valid government-issued photo ID (driver’s licence/passport). | Can be purchased with cash without a bank account; photo ID is required to cash or redeem it. |
| Where to Cash | Deposited or cashed primarily at Canadian banks and credit unions where you hold an account. | Cashed at major banks, credit unions, Canada Post, or authorized Western Union agent locations. |
Why would you use a money order over a cashier’s check?
Cashier’s checks are good for making larger money transfers, but there are several benefits to purchasing a money order. Here are some benefits of using a money order over a cashier’s check:
- Cheaper fees: Money orders and cashier’s checks both require fees, but money orders tend to cost less. The processing fee for a cashier’s check is around 10-15 dollars, whereas money orders usually cost around one dollar. A money order from a bank may cost around five dollars, which is still less than a processing fee for a cashier’s check.
- Can be used without a bank account: Most banks that issue cashier’s checks require users to open a bank account, while money orders can be purchased without one.
- Widely available: Money orders can be purchased in many different retail stores and currency exchanges, making it easy to send and receive them. They are also convenient for mailing out if you are seeking a physical alternative to an international wire transfer. However, if you need to transfer money overseas quickly without paper documents, you can easily send money to the US, send money to India, send money to the Philippines, or send money to the UK directly through our digital channels. If you prefer to buy a money order through Western Union in person, whether you are sending funds from money order Toronto locations or across the nation, you can find the nearest agent location to explore your options.
If you’re looking for more reliable ways to send money, make an online transfer with Western Union. By downloading the Western Union Mobile App, you can make quick money transfers from anywhere and track your transfers in real time so you know that your money has safely arrived at its destination
Commonly Asked Question about Money Order and Cashier’s Cheque
You may be able to cash a money order at major banks, credit unions, Canada Post, or authorized Western Union agent locations. Acceptance and identification requirements can vary by the institution or location, so check with the provider before visiting.
Both money orders and cashier’s cheques are generally safer than cash or personal cheques because they are prepaid or guaranteed forms of payment. Cashier’s cheques may offer greater security for larger amounts because they are issued directly by a bank or credit union.
Yes, money orders can be used to pay bills when the biller accepts them as a payment method. Before purchasing one, confirm that the recipient or biller accepts money orders and check whether any specific payment instructions apply.
A money order may be cancellable or replaceable if it has not been cashed. You may need to provide the original purchase receipt or serial number and pay a processing fee. Contact the issuer as soon as possible if a money order is lost or you need to request a cancellation.
Replacing a lost cashier’s cheque can require you to contact the issuing bank or credit union and provide documentation, such as a declaration of loss. The issuer may also require an indemnity bond or other security before issuing a replacement.
You can send a money order or cashier’s cheque by mail, but using Canada Post registered or trackable mail with signature confirmation can provide additional security and proof of delivery. Keep the receipt and tracking information until the recipient confirms receipt.
Requirements vary by bank or credit union, but you may need a valid government-issued photo ID and an eligible bank account. Contact the issuing institution beforehand to confirm its identification and account requirements.
