Cashing money orders - how long to wait?

[Vectorman0]

I'm getting a money order from a low feedback seller, and I know money orders can be declared bad after you have cashed them. Does anyone know how long I need to wait to be sure that the money order was good?

[Cornelius]

My understanding is that they are technically no different than checks, and checks vary a lot from bank to bank. A lot of them will tell you "the funds are available now" or somesuch when I ask how long it takes; the tellers don't seem to have a clue what I mean. Anyway, I typically wait 10 days, check my account again and then ship. Typically?!? heh... the 2 or 3 times it has happened I should say.

One last thing, while they are technically the same as checks, practically I think they are safer. And postal MOs are great, cause you can go into most any post office and get your cash, so in that case it is instant.

[VACRMH]

7-10 days is a good idea. Even if the funds become available from the money order it can still come back as fradulent.

A customer at the bank I work at had deposited a money order and once the funds were available took out the money... few days later the same amount was taken out of the account due to the money order being a dud.

[rik1138]

The best way to deal with them is not to deposit them, but to cash them. You can request that they only send you Postal Money Orders, which you can cash at the post office and then you don't have to worry about it. If they are from a bank, cash them at the bank they were drawn from (not your bank). Again, you now have cash, no problem.

The only problem might be finding the bank near you or something... That's why I always request (but not demand) postal money orders. Most 'honest' people shouldn't have a problem honoring your request... :)

Rik

[Jimmy Yakapucci]

I prefer Postal Money orders for the security and the ease of cashing them. Although it has been a hassle to cash a large one when the post office didn't have enough cash on hand. Also, they are beneficial if you do not have a bank account. My step-son sold some car parts and instead of sending a postal money order, the guy sent one from the local grocery store. He was finally able to cash it on a Friday at a liquor store after paying a 3% fee.

JY

[Vectorman0]

I always say "Postal Money Orders only", but half of the time I get them from some other place and end up cashing it at my bank. What else is there to do, I can't win... Naturally, I have to cash it at my bank against my own balance, so if it did bounce it ends up coming from my account.

Thanks for the tips. I will wait at least 10 days probably before shipping it out. I hate to make the buyer wait that long, but I can't risk it with his/her single digit feedback.

[psychic1]

How can a money order not be good? I've never heard of being able to get a money order without having to pay for it on the spot. I thought that was the whole point of a money order. It's like a check in the sense that the only person that can cash it is whoever it's made out to and it's also like cash because it has already been paid for in full.
Is this not correct?

[FABombjoy]

Fake money order are no good ;)

[Cornelius]

How can a money order not be good? I've never heard of being able to get a money order without having to pay for it on the spot. I thought that was the whole point of a money order. It's like a check in the sense that the only person that can cash it is whoever it's made out to and it's also like cash because it has already been paid for in full.
Is this not correct?
For the most part you are correct. But I did read not too long ago (don't recall where, sorry) about a case where a guy had his bank make out a money order, but somehow didn't have to pay for it up front. By the time it was cashed I guess there weren't funds in the account or something... don't recall exactly how it went. The seller took the bank to court for the moola, but lost. I'll try to dig up the article later.

Could have been a fake article I guess, since it was on one of the internets. If anyone can correct please do so, because I thought they worked just as you describe, too, and was surprised to read otherwise. I still bet they do work like that 99% of the time, barring outright fakes.

[psychic1]

Yeah I'd like to meet the person that's smart enough to be able to counterfeit a money order and stupid enough to commit fraud over a $35 purchase on Ebay.
Minimum of six years in a federal penitentiary...35 bucks is totally worth that risk! :roll:

[Kitsune Sniper]

Fake money orders are real, folks. Western Union is one of the biggest, shall we say... victims of forgery and scams.

Postal money orders are the safest bet. Also, money orders -should- have a contact phone number on 'em. Calling said number usually helps you find out if it is legitimate or not. :)

edited to add:
psychic1, that can happen. Anyone can use a fake address (or an address that isn't necessarily where the buyer lives) and pay for an item to be sent there. Once the item arrives, the buyer vanishes. It happens.

[ryborg]

I'm getting a money order from a low feedback seller, and I know money orders can be declared bad after you have cashed them. Does anyone know how long I need to wait to be sure that the money order was good?

Don't be so paranoid. Unless it's a large dollar amount MO or you seriously suspect something fishy, just deposit it, ship the item out, and move on. If you must be 100% sure all will be well, take it to a grocery store or one of those check-cashing places. Once it's cashed there, the transaction is over.

I've received a small stack of checks/MOs every week since mid-'98, and I've NEVER had a problem with a MO (or a check for that matter). That goes for my friends and colleagues as well.