Money orders and cashier's checks are very similar. With a money order, the buyer prepays the total amount in exchange for a small piece of paper. It can be given to the payee, who can then deposit it into their account. In this manner, a money order is similar to a cashier's check, however, here are some key differences:
-There's a limit to the amount of each money order, which is typically $1,000. So if you need $2,000 in money orders, you have to purchase several and pay a separate fee for each one.
-The buyer fills out the money order instead of the bank.
-Money orders are not backed by a bank, and they can take longer to settle.