Just how safe ARE postal money orders?

[Number Of The Priest]

Hypothetical scenario. I want to buy something online, and the seller only accepts money orders. So, I purchase one and send it off to the seller. Three things will happen... the seller will receive/bank the money order and send me my item and everybody lives happily ever after, or the seller will "pretend" that the money order never got there and rip me off, or the money order will get lost in the mail forever.

In the second outcome, how could I (the buyer) tell that the seller banked/cashed in the money order? What kind of proof is there? Is it easy for the seller to say that he/she never got the money order and rip me off?

In the third outcome, what happens to the both of us if the money order is lost in the mail?

Just trying to weigh out sending money via PayPal and direct bank deposits/transfers (both of which I have had 100% success with) compared to sending money orders since I've only ever RECEIVED a money order but never sent one, and I don't know if American banks accept Canadian money orders or teller-signed bank checks.

[Cleveland Metal]

Re: Just how safe ARE postal money orders?

If they cash any money order to their account, their is a trail to it. Since a postal money order is federal stuff, fraud/theft like that would be more serious than a private company money orders fraud/theft. Either one takes some time to trace out. MUCH better IMO to have postal inspectors tracking it than the police.

If they cashed it at a corner store and used fake ID or whatever, I guess it's pretty much a loss as there is not way to really trace where it went.

I prefer to use neither and stick mostly with (yuk) Paypal. But they can fraud you with anything if they care to go to the trouble.

I have used Postal Money orders for many large ticket items and ALWAYS get sick to my stomach when sending them to someone. I don't mind getting them though, haha...

If you get one for something, MAKE SURE it clears your account before shipping the item! Postal Money Orders can be cancelled like anything else. You might have it in your hand, but it may be worthless.

[Number Of The Priest]

Re: Just how safe ARE postal money orders?

Yup, the only time I received a money order, I waited until it cleared my bank and showed up in my statement before I sent out the item. The buyer was understanding... she didn't read that I had specifically put PAYPAL ONLY in my Ebay auction description so now she was playing by MY rules since I allowed her to send me a money order. [img]/images/graemlins/laugh.gif[/img]

[lerxstcat]

Re: Just how safe ARE postal money orders?

I don't know if this works the same in Canada, but here in the US if you receive a USPS Money Order in payment, you can cash it at any Post Office. I cash them, then deposit the cash. If the person cancelled a money order and shipped them an item, the Post Office can prosecute them for the fraud, not me! Or at least that's my position in the matter - if I can prove we had a deal, cashed the MO and sent their stuff, then how can I be in the wrong? I prefer Paypal for the speed of it, but yeah, anyone can defraud you if they really want to. That's why I deal with CONUS
only; it'd be hard to drive across an international border with my "collection tools"!

[RacerX]

Re: Just how safe ARE postal money orders?

Rich is right; ask for POSTAL MOs and you can cash them at any post office - no need to do the "deposit in my bank and hope" thing. [img]/images/graemlins/tongue.gif[/img]

[lerxstcat]

Re: Just how safe ARE postal money orders?

Oh, if the MO was cashed by a non-intended recipient, I believe you can file a claim and ultimately get a refund. Likewise, if it gets lost in the mail, you file a claim and get a refund. I've never had to do either, but I'd bet it has to be 30 days missing before you can file, and probably another 30 to 60 to get your money. Serious PITA but better than getting stiffed altogether.

When paying by money order, I always spring for Priority Mail with Delivery Confirmation. I believe being able to prove the intended person actually got the item probably removes most temptation to cash it on the sly andsay they did't get it, since they can't say that if I have Delivery Confirmation.

It also gives me an excuse to email and say, "Hey, I see you got my payment today; that's great! Please email me the tracking # as soon as you ship, and if you wouldn't mind replying real quick to tell me when you expect to ship, I'd be grateful!"

I seem to be lucky with this approach and the items are almost always shipped very quickly.
I could just be lucky, I guess. I will get their phone # from Ebay and call if I don't hear back in a couple of days; email can have problems.

[YetAnotherOne]

Re: Just how safe ARE postal money orders?

I agree with Rich except when I do big ticket stuff via MO I usually spring for Express Mail and require a signature from the recipient. Delivery Confirmation is OK but it only shows that the item mailed was delivered to the correct address, it doesn't prove that the intended recipient actually got it.

[Newc]

Re: Just how safe ARE postal money orders?

There's also a fourth scenario - seller takes money and never ships out the item, then disappears.
In that event, you take your Money Order stub/receipt (the little part of the MO you had to tear off when sending it - the thing that said "Keep for your records") and have them track it.
If it's been cashed/deposited, it'll show up as Paid. If it's lost, they make you wait 30 days before they officially declare it missing/dead (IIRC).

If it's been a long time (couple of months), you can request a Copy of the MO, which will be a photocopy of the front and back, showing the endorsement on the back of whoever cashed it.

That should be the proof you need in the event you end up like I did - seller took the money and ditched the item in a local sale.

Newc