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Everyday Money

Money Order

Also called: postal order

A money order is prepaid paper currency for a fixed amount, bought with cash or a debit card and payable to a named recipient. Because it's prepaid it can't bounce, which makes it useful when the payee doesn't trust your check and when you don't have a bank account. Limits are low (commonly $1,000) and fees are small but non-trivial. Money orders are also a favourite of scammers: counterfeits look convincing, so verify with the issuer before releasing goods.

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