Money Orders - is there a downside

  1. I am selling a bag - and just offering paypal.
    I was emailed and asked whether I would accept a money order. Are there any dangers of fraud with money orders? Is there anything I should be careful about?
    Thanks for your opinions!
     
  2. I have heard that there are fake money orders. If you do accept one, make sure to cash first and then maybe wait a few days to send.
     
  3. Money orders can be fradulent so when you deposit it have them give you all the information on how to check when it has cleared. Don't send anything until you are 100% sure the money order has cleared in your account.

    Other than that, I love money orders! No paypal fees or fear of chargbacks!
     
  4. Money orders can be fradulent so when you deposit it have them give you all the information on how to check when it has cleared. Don't send anything until you are 100% sure the money order has cleared in your account.

    Other than that, I love money orders! No paypal fees or fear of chargebacks!
     
  5. Request that it be a postal money order and then cash it at the post office. Its pretty secure that way.
     
  6. MOs can be stopped just like a check...wait until it clears before you send something out to the buyer
     
  7. There are a lot of fake money orders floating around. Make sure that you specify a waiting period before you send out the bag. I've heard of stories where the seller deposits the money order (because the bank assumes it's real) and then later when the bank realizes it's fake, they'll take the funds back from your account.

    If you specify a 10 day waiting period, you'll avoid any problems.
     
  8. I think the MO from the post office are the best ones to get/have.

    You should wait until it clears before you ship out your bag though.
     
  9. is it the same with wire transfer?
    i'm not familiar with MO, but wire transfer is great!
    she can transfer the amount directly to your bank account and it's very safe although it can took 3-5 business days to cleare the acc. and u shouldn't send the bag BEFORE it's cleared.
     
  10. thanks everyone for the great advice!
     
  11. Ditto! I love buyers who will pay with a PO m.order, saves me paypal's ridiculous fees.

    I will ONLY accept Postal MO's and cash at the PO before I ship the item.
     
  12. Money order risk:
    A bank is required to "clear" a check or MO in a set # of days. They usually don't find out the fraud till a week or weeks later. At this time, they will either deduct this amount from your bank or bill you. This can go to a collection agency if you don't pay.
    Edit: I don't know if postal money orders have this risk, but they do seem a lot safer than other money orders and checks.

    Wire transfer risk:
    Once the scammer finds out your bank information, they will use it to scam others. Depending on how good they are at hacking, they can impersonate you, etc. Be very careful about giving out your bank information.
    If they already paid and cleared, it should be okay, but if they get your bank info and dissappear, be very careful.
     
  13. Just make sure it clears!
     
  14. Money orders take a while to clear. Check with your bank about how long it will take.

    It may be good idea to set up another account with the bank, just for eBay transactions. Keep seperate from your household accounts. Maybe even going to a different bank. That way if the account is attacked, the bank will not pull from savings accounts to cover the charges.

    There are new ways to scam everyday. And frankly, I don't trust anyone.
     
  15. I don't know where you are from but in Canada once they are issued you cannot do a stop payment. I tried once.
    They are just like cash here or a certified cheque. The money comes out of your account when you pay for the money order. Therefore, they can't bounce.
    I use them all the time.