Unlike personal checks, money orders cannot bounce. Money orders can be a safer option than personal checks or cash payments. Once issued, money orders can be cashed or deposited like any other check. For payments that exceed that amount, multiple money orders must be purchased. Generally, money orders cannot exceed a specified dollar amount. The purchase price is the dollar amount of the money order, as well as an issuing fee that can vary based on the dollar amount or where the order is purchased. Nice.A money order is a method of payment that can be purchased from entities such as banks and post offices, as well as some stores or other businesses. So, you're out an item you were selling and get to cover the amount of the fake money order. If you deposit a fake money order valued at $1,000 and the bank figures out the thing is no good, you could be out $1,000 to cover the loss. If you receive a fake money order and then deposit it in the bank, guess who is responsible? You are. There is a fairly common scam in which someone will purchase something online and then send a fake money order to cover the cost of whatever was purchased. There is another reason a lot of businesses and people prefer postal orders to money orders - scams. Your bank will only charge you if the fake is discovered and you've only spent the money.īut exercising caution is always a good idea. If that $1,000 money order turns out to be no good but you haven't spent a dime of it, then you are in good shape. Simply don't send the item until the money order clears and don't spend the money you gained through it until you know it is good. July 12, - such things happens very rarely but there is still a way to protect against that scam. Malcolm’s other interests include collecting vinyl records, minor Variety of print and online publications, including SmartCapitalMind, and his work has also appeared in poetry collections,ĭevotional anthologies, and several newspapers. Since then, he has contributed articles to a Trivia, research, and writing by becoming a full-time freelance writer. Always insist on payment through traceable channels.Īfter many years in the teleconferencing industry, Michael decided to embrace his passion for And if you sell on eBay or similar websites, you should never accept any checks or money orders as payment. If the sender puts pressure on you to act quickly, that’s a definite red flag. Check the money order against the issuer’s sources to ensure that it’s genuine. They then say, “Oops!” and ask you to send the difference back.īefore you deposit or cash any money order, you should verify the funds. “Overpaying” a purchase: The thief sends you a money order for more than the amount owed.But in this case, the miscreant wants all the money back, as in yesterday. Rental reversal: Like buyer’s remorse, the scam payment is for an apartment or real estate.Buyer’s remorse: The scammer sends you a payment and then backs out of buying your goods but offers to let you keep part of the payment for “goodwill.”.But there are a few other versions that wily thieves may try: We’ve already mentioned a couple of common versions, the “deposit assistance” tactic and fake money orders as payment for goods. To avoid being ripped off, you must recognize when someone’s trying a money order scam. They’ll also have a dark-colored security thread running from top to bottom on the right of the watermark with the letters “USPS” running both forward and reverse. Legitimate money orders will also have a Benjamin Franklin watermark on both sides when held up to a light source. Anything greater than these amounts is sure to be a fraud. Domestic Post Office money orders cannot exceed $1,000, and international postal money orders can’t go above $700. Thankfully, there are still ways to tell a legitimate postal money order from a counterfeit. They also target the public with tactics such as promising hefty rewards for depositing the money order and sending them the funds. These scam artists usually try to rip off people who sell goods online by sending them fake money orders. While postal money orders are more reliable than other instruments, extremely clever thieves can still counterfeit them. Again, you’ll end up paying more than if you visit the Post Office or a bank. And like check cashers, convenience stores and gas stations may charge a percentage of your money order. As with retailers and check cashing establishments, you’ll probably pay a fee. But it’s still wise to call ahead and make sure your preferred location offers these services. Gas stations and convenience stores that cash checks and money orders aren’t as rare as you may think.
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