Money orders purchased at the post office are considered money orders.
While a money order and money order are often considered the same type of financial instrument, there are some subtle differences between the two. These differences center around where the instruments are obtained, where they can be offered for cash, and who will accept them as payment. In some nations, the level of risk associated with them also creates a further distinction between the two.
Some banks no longer accept money orders due to the possibility of abuse.
One of the main differences between a money order and a money order has to do with where the instruments can be purchased. A money order is purchased directly from a national postal system, such as the US Postal Service or the UK Post Office. In contrast, a money order is produced by an independent financial services provider and can be purchased at any number of outlets, including supermarkets or pharmacies.
Another key difference is the reputation of the two instruments. While there are exceptions, lenders are generally more willing to accept a money order than one issued by an independent financial service provider. One reason for this is the perception that money orders are more difficult to counterfeit than those issued by other entities. In addition, there are providers that tend to be somewhat slow to honor payment, a factor that can lead some creditors to not credit customers’ accounts until funds are received. In contrast, the face value of money orders can be posted immediately, as the chances of counterfeiting or some other issue are relatively low.
The redemption of the financial instrument is another difference between a money order and a money order. Many banks, along with most post offices, will accept a money order immediately and provide cash to the person who presents it. In contrast, a money order may not be eligible for immediate receipt. Instead, the introducer would need to deposit the order into a bank account and give the bank time to settle it. This is another reason why many lenders will accept money orders but may decline payment offered in the form of a money order.
Both orders are viable means of sending money or paying for offers. Since the money order is generally considered the more reliable of the two options, it is probably the better choice when there is any question as to where it will be issued. Many companies provide specific guidelines for using a money order or money order, including information on how long each instrument will take to post to a credit account, making it easy to determine which instrument is best to use in a given situation.