The main difference between money orders and cashier’s checks is that money orders are capped at $1,000 while cashier’s checks have much higher limits. When buying a private-party car, you’re better off paying with a cashier’s check than a handful of money orders. But that’s just one of the reasons money orders are a bad way to pay for a car.
We’ll guide you through the differences between money orders and cashier’s checks, the car buying process, and introduce you to a better way to pay for a private-party car.
| Cashier's check | Money order | |
|---|---|---|
|
Maximum amount |
No upper limit |
Typically capped at $1,000 |
|
Issuer |
Banks or credit unions |
Grocery stores, post offices, banks, and convenience stores |
|
Cost
|
Higher fees ($10–$15, sometimes free for account holders) |
Lower fees (usually under $5) |
|
Security |
Bank-guaranteed funds with the “pay to” field filled out by the bank |
Prepaid and guaranteed not to bounce but less secure if lost/stolen |
|
Accessibility |
Requires a bank account or visiting a bank |
Can be purchased without a bank account |
|
Best for |
Larger transactions requiring extra security |
Everyday payments or smaller transactions |
A money order is a form of prepaid payment similar to a check. You can purchase one by paying the value amount plus a small fee (typically $1–5) using cash or debit card at post offices, convenience stores, supermarkets, banks, or Western Union outlets.
Money orders include the recipient’s name and amount and come with a tracking number that allows them to be replaced if lost or stolen. They’re usually limited to $1,000 or less per order and are useful for people without bank accounts, sending money through mail, paying rent or bills, making international payments, or when someone doesn’t want to share their banking information.
The $1,000 limit is the main problem with money orders. Most cars are much more expensive than that, meaning you would have to buy multiple money orders to pay. Besides the value cap, there are a few other reasons money orders aren’t a preferred payment method for car transactions:
The only real upside to money orders is that you don’t need a bank account to purchase them, but that detail alone might scare away car sellers. Since cashier’s checks are an option, there’s no good reason to pay with money orders.
Cashier’s checks (bank checks or teller’s checks) are issued by the payee’s bank and guaranteed by its funds. Since the funds are supplied by the bank, there is no risk that cashier’s checks will bounce, and they clear quickly. Speed and security make cashier’s checks a preferred payment method for:
Cashier’s checks are a great alternative to carrying large quantities of physical cash, and sellers know that they are a tried and true way to receive a car payment.
Once you’ve found a car you like and confirmed with the seller that they’ll accept a cashier’s check, the transaction process follows these general steps:
To keep the sale moving quickly, tell the seller to cash the check in person instead of remotely. Online deposits delay the transaction and might cause the bank to place a temporary hold on the check.
Cashier’s checks, while secure, are a bit outdated. Here’s how they fall short for car transactions:
Instead of choosing between old-school paper options, why not try a new payment method that’s more secure than a cashier’s check and delivers car-specific features?
DealNow streamlines private-party car transactions. Find a car you like and finish the deal quickly and securely from the convenience of your mobile device. Here’s what we bring to the table:
DealNow is more than a payment method. It is a one-stop platform for conducting fast, safe car transactions.
The best form of payment for private-party car sales is DealNow. Unlike checks and physical cash, DealNow enables instant, verified transfers of large amounts of money directly between buyer and seller.
DealNow secures transactions by:
With DealNow, you get the immediacy of cash with bank-level security. Funds are held in FDIC-insured accounts with easy offboarding to your regular bank.
Most financial institutions allow access to deposited cashier’s check funds after one business day.
If the bank suspects fraud or the depositor has suspicious account activity, large cashier’s check deposits might be held for review.
If you’re selling a car and you want instant access to your funds, use DealNow. Payments are instantly deposited in an FDIC-insured account with quick withdrawals to your regular bank.
Cashier’s checks don’t have legally defined maximum limits. Nearly all financial institutions will issue and allow the cashing of cashier’s checks over $10,000.
If you’d like to skip the bank visit during your next high-dollar transaction, try DealNow for instant, verified transactions without limits.
Cashier’s checks typically expire 90–180 days after being issued. Their expiration date depends on the issuing institution’s policies. In most cases, the recipient of a cashier’s check that expires can contact the issuing bank and order a replacement for a small fee.
It’s best to deposit cashier’s checks as soon as possible to avoid loss, theft, or expiration. You could also take a different payment approach during your next transaction. DealNow facilitates instant payments that never “go bad” or face chargeback risks.
If you purchased a cashier’s check and you haven’t given it to anyone or it was recently lost, you can contact your bank to cancel the check. Once a cashier’s check has been cashed, the bank can’t reverse the transaction.
There’s no universal maximum amount for cashier’s checks, but some banks have their own limits. Small banks and credit unions often cap cashier’s checks at $10k to $20k, but large banks can usually issue cashier’s checks for $1 million or more.
When accepting a check as payment, look out for these common signs of fraud:
Always verify the check with the issuing bank and wait for it to fully clear before releasing your vehicle. If something feels off, trust your instincts and proceed with caution.
A legitimate cashier’s check cannot have insufficient funds. Unlike personal checks, cashier’s checks are drawn directly from the bank’s reserves, not an individual’s account. When a cashier’s check is bought, the buyer provides the funds upfront, which the bank then guarantees.
This doesn’t mean cashier’s checks are immune to fraud. While the check itself can’t “bounce” due to insufficient funds, counterfeit or altered cashier’s checks can still be an issue. Always verify the check’s authenticity with the issuing bank before finalizing the sale.
DealNow is the easiest way to close your own vehicle deal, anytime. It’s the safe and simple way to avoid fraud, sign documents, and instantly transact, all in one app.
