Accepting Money Orders and Cashier s Checks

Accepting Money Orders and Cashier's Checks

The good thing about accepting credit card payments via PayPal is that you get paid quickly; the bad thing is that it costs you (up to 2.9% plus $0.30 per transaction). For that reason, many sellers prefer alternate methods of payment, such as (and especially) money orders and cashier's checks.

When you receive payment via money order or cashier's check, you get to cash the entire check; there aren't any fees to deduct. However, you have to wait a bit for the buyer to send you the money order or cashier's check in the mail. That's a trade-off many sellers happily make.

The other good thing about money orders and cashier's checks is that you don't have to wait for the checks to clear, as you do with personal checks (discussed next). A money order or cashier's check is almost as good as cash; it's hard to get burned.

Caution

While cashier's checks and money orders are generally safe, there are some scams that you need to be aware of. In particular, beware of scammers who send you a money order or cashier's check in excess of the amount due, then ask you to send them the difference. That's a sure sign that the payment is fraudulentand you make it worse by sending the scammer some of your money in return!