Credit cards vs. Money orders

[Swiss Miss]

Ok so for ages my mom and I have been going back and forth about this subject.

 

Which is safer and better to use for everyday things and/or for paying bills: Money order or Check (credit) card?

 

 

I'm dying to find out what you guys say about this, we always fuss at each other about it lol.

[MarvBear]

I cannot remember the last time I've actually hand written a check. Whenever possible I pay all bills with a credit card. I do not use a debit card.

 

Otherwise, all payments are made thru my bank's online bill payment system.

 

Just my system.

[eirek]

Credit Cards offer protection in that you can dispute and get your money back if something goes wrong. Give the Seller a Money Order and the product is defective or they lied, good luck getting your money back unless they're honest.

Edited February 27, 2008 by eirek

[radi8]

I've had a heck of a time cashing money orders. My CU puts a hold on them. (and they do NOT put a hold on personal checks when I deposit them. Go figure) Makes me think they have their share of fraud problems with them.

[Swiss Miss]

Credit Cards offer protection in that you can dispute and get your money back if something goes wrong. Give the Seller a Money Order and the product is defective or they lied, good luck getting your money back unless they're honest.

 

That's what I said!

 

Cash...which to me is a money order, can easily be stolen, "not accounted for", etc. They cay say they never got your money order, cash it, and make you send them more money. With a credit card or check card (which is what I use), you see it when they take it...even if the bank doesn't clear it for another two days (USAA *fuss fuss*) you still know it's been processed.

 

I'm glad I'm actually right for once

[LustfortheMoment]

I don't think that the OP is referring to a credit card. Industry terminology for a "check card" refers to an ATM/debit card like the following:

 

 

I agree with the above posters in stating that neither a money order nor a "check card" provides the security which you receive with a credit card.

[Swiss Miss]

I don't think that the OP is referring to a credit card. Industry terminology for a "check card" refers to an ATM/debit card like the following:

 

 

I agree with the above posters in stating that neither a money order nor a "check card" provides the security which you receive with a credit card.

 

I'd love to go the credit card route myself but unfortunately I can't get one hehe. Denied by Chase even. You're right though, I was referring to a check card, the card that's really a check but is plastic and goes directly out of your checking account. My mom does have a credit card though, and I think she should pay her bills by credit card and then pay her credit card off every month. She has about 2 cards now that just sit there, gathering dust that she needs to use for something. Sure she has credit scores in the high 700's (like 790 was the last one I think) but she can get them higher I know.

[LustfortheMoment]

Swiss Miss, I don't know your credit situation, but perhaps your mother could add you as an Authorized User on one of her cards. You could then charge and pay her in full each month in an effort to raise your scores. Be aware that an anticipated change in FICO scoring may prevent you benefiting from such a move, so I'd strike sooner rather than later!!

 

Good Luck,

[larson0818]

They cay say they never got your money order, cash it, and make you send them more money.

The Post Office can find out if a MO is cashed, I'm sure, like with checks, you can see who endorsed it and the banks it went through, etc. (A guess: the hold could be to check the MO against the list of known MOs that were stolen.)

 

Also, why spend $1.05 for each MO you want to send (plus $0.41 for postage) when you can do it online for free. It's much quicker too.

[Swiss Miss]

They cay say they never got your money order, cash it, and make you send them more money.

The Post Office can find out if a MO is cashed, I'm sure, like with checks, you can see who endorsed it and the banks it went through, etc. (A guess: the hold could be to check the MO against the list of known MOs that were stolen.)

 

Also, why spend $1.05 for each MO you want to send (plus $0.41 for postage) when you can do it online for free. It's much quicker too.

 

That's another thing I said. Plus with the hassle of going to the post office (or wherever), waiting in line, paying $1 for one stamp (as we all know it's going to hit that) and then mailing it and hoping it gets there it's just too much.

 

Trying to get her to actually use her card online has been an ongoing process that's been very very very hard. She's convinced someone is sitting there waiting for her to do something online so they can steal her identity.

[LogicalOne]

THere are a few good reasons to use money order. When paying a debt collector.

This way they cant nab into your bank account each month and go willy nilly on it.

2: a money order keeps you somewhat anonymus (sp?) without divulging too much financials of yourself.

3: All money orders are logged by the institution purchased from. A receipt is given the buyer. Retain the receipt as proof.

 

With all the accolades for check cards, one is leaving the door open for that payee to come in to that account anytime they want to retrieve funds. Youve basically given them the key to your account. Same with a check. Your account is on there for them to place in a data bank and use as they please. That is why electronic checks are so quick to deduct. They only need your # to do as they please.

 

Now I may not have all the facts right but I am 85% sure that once you let the party have access, rarely can you close the door on them.

 

So I would say it depends on who the money order is being issued to and how much authority you want to grant an entity to your checking account funds.

[MikeVQ]

How do you pay your bills (telephone, cable etc.) with a credit card?

[hegemony]

How do you pay your bills (telephone, cable etc.) with a credit card?

online bill pay or I set it up directly with the utility. verizon and embarq for example, charge my CC each month directly.

[MoOn-BaBy]

How do you pay your bills (telephone, cable etc.) with a credit card?

online bill pay or I set it up directly with the utility. verizon and embarq for example, charge my CC each month directly.

 

What online bill pay allows you to fund with a CC? All I've evern seen require a checking acct.

[larson0818]

THere are a few good reasons to use money order. When paying a debt collector.

This way they cant nab into your bank account each month and go willy nilly on it.

2: a money order keeps you somewhat anonymus (sp?) without divulging too much financials of yourself.

3: All money orders are logged by the institution purchased from. A receipt is given the buyer. Retain the receipt as proof.

 

With all the accolades for check cards, one is leaving the door open for that payee to come in to that account anytime they want to retrieve funds. Youve basically given them the key to your account. Same with a check. Your account is on there for them to place in a data bank and use as they please. That is why electronic checks are so quick to deduct. They only need your # to do as they please.

 

Now I may not have all the facts right but I am 85% sure that once you let the party have access, rarely can you close the door on them.

 

So I would say it depends on who the money order is being issued to and how much authority you want to grant an entity to your checking account funds.

Nobody can legally do anything to your account you don't authorize them to do. If they do, it's an illegal/unauthorized charge that you can dispute with the bank, etc. Sure it might be a pain in the flowers, and it will take work to get the bank to see that you are in the right, but you have certain rights as a consumer. It's not nearly as bad as you put it. It just really sucks to have your account wiped clean, rack up numerous overdraft charges, returned payment fees, etc. and then if you do get it straightened out, the perpetrator just says "Oops" and they're let off the hook. Sometimes a CA will fraudulently put your signature on a document that grants them authorization.

So why don't waiters and waitresses put extra ones on your CC slip to fatten up your tip? Because you only authorized a certain amount, not a penny more. Granted you do increase your exposure to fraud by using your CC in public places or sending checks to people you don't trust, but it's all about comfort level.

 

(these are my thoughts, and by no means definitive.)

 

{side note: One company we have auto-pay set up with says "please allow 3-6 months for changes to your auto-payment to take effect" which means they can legally continue to charge your account for 6 more months after you tell them to stop. But they still have to stop}

[persevering]

Ok so for ages my mom and I have been going back and forth about this subject.

 

Which is safer and better to use for everyday things and/or for paying bills: Money order or Check (credit) card?

 

 

I'm dying to find out what you guys say about this, we always fuss at each other about it lol.

 

As far as paying for credit card bills with money orders, after six years I've never had a money order be lost in the mail. Also, payments are posted very quickly to my credit cards -- an average time of 2-3 days later from the day that I mailed out the money order. Post Office money orders are now ~ $ 1.05, but at the grocery store Western Union money orders are 50 cents.

[Call Me Laura]

THere are a few good reasons to use money order. When paying a debt collector.

This way they cant nab into your bank account each month and go willy nilly on it.

2: a money order keeps you somewhat anonymus (sp?) without divulging too much financials of yourself.

3: All money orders are logged by the institution purchased from. A receipt is given the buyer. Retain the receipt as proof.

 

With all the accolades for check cards, one is leaving the door open for that payee to come in to that account anytime they want to retrieve funds. Youve basically given them the key to your account. Same with a check. Your account is on there for them to place in a data bank and use as they please. That is why electronic checks are so quick to deduct. They only need your # to do as they please.

 

Now I may not have all the facts right but I am 85% sure that once you let the party have access, rarely can you close the door on them.

 

So I would say it depends on who the money order is being issued to and how much authority you want to grant an entity to your checking account funds.

Nobody can legally do anything to your account you don't authorize them to do. If they do, it's an illegal/unauthorized charge that you can dispute with the bank, etc. Sure it might be a pain in the flowers, and it will take work to get the bank to see that you are in the right, but you have certain rights as a consumer. It's not nearly as bad as you put it. It just really sucks to have your account wiped clean, rack up numerous overdraft charges, returned payment fees, etc. and then if you do get it straightened out, the perpetrator just says "Oops" and they're let off the hook. Sometimes a CA will fraudulently put your signature on a document that grants them authorization.

So why don't waiters and waitresses put extra ones on your CC slip to fatten up your tip? Because you only authorized a certain amount, not a penny more. Granted you do increase your exposure to fraud by using your CC in public places or sending checks to people you don't trust, but it's all about comfort level.

 

(these are my thoughts, and by no means definitive.)

 

{side note: One company we have auto-pay set up with says "please allow 3-6 months for changes to your auto-payment to take effect" which means they can legally continue to charge your account for 6 more months after you tell them to stop. But they still have to stop}

 

A friend of mine returned equipment to Verizon and they mistakenly charged her $600 for it, withdrawing the money from her checking account she'd used to pay bills. She had nearly $1000 in NSF fees and it took over 3 months to resolve. One of the bounced checks was to her son's school for lunch money. Not only did it take a week for them to reverse the first fee, the bank wouldn't credit the NSF fees, and Verizon opted to mail her a check for them. Since her account was extremely overdrawn, she couldn't get cash out to pay the school so her kid could eat.

 

Oh, and then her car payments and mortgage were late, which go on your credit report for 7 years.

 

Pay with a credit card.

[hegemony]

How do you pay your bills (telephone, cable etc.) with a credit card?

online bill pay or I set it up directly with the utility. verizon and embarq for example, charge my CC each month directly.

 

What online bill pay allows you to fund with a CC? All I've evern seen require a checking acct.

the card is on file with the utility. no fees for monthly billing to CC.

[MoOn-BaBy]

Your utility company is nicer than mine then.

[Guest Bree82]

I paid my rent with a Money Order. The apartment complex claimed they never received it. I had to pay rent again and with a late fee. I tried tracking down the money order for MONTHS with western union (the issuer) and got nothing. I lost hundreds of dollars. I will never pay anything with a MO again. If I cannot pay by CC or personal check I will get a cashiers check from my bank.

Edited June 27, 2008 by Bree82

[Mike1111]

I paid my rent with a Money Order. The apartment complex claimed they never received it. I had to pay rent again and with a late fee. I tried tracking down the money order for MONTHS with western union (the issuer) and got nothing. I lost hundreds of dollars. I will never pay anything with a MO again. If I cannot pay by CC or personal check I will get a cashiers check from my bank.

Why would you EVER pay with a MO? That is crazy...

 

CC all the way.

[Guest Bree82]

I paid my rent with a Money Order. The apartment complex claimed they never received it. I had to pay rent again and with a late fee. I tried tracking down the money order for MONTHS with western union (the issuer) and got nothing. I lost hundreds of dollars. I will never pay anything with a MO again. If I cannot pay by CC or personal check I will get a cashiers check from my bank.

Why would you EVER pay with a MO? That is crazy...

 

CC all the way.

 

No choice. I had a check bounce with them because of an unauthorized charge to my checking account. Since THAT check bounced I was banned from paying with checks... I started getting cashiers checks for them after that and every place Ive lived since is either cashiers check or personal check depending on my mood. I prefer to pay with cashiers because then the money is taken from my account right then. I hate waiting for checks to clear. Ive never paid rent with a credit card. I dont even have a limit that would cover rent!! lol. Highest limit card $1300. Rent $1670 altho my complex does accept them.

Edited June 27, 2008 by Bree82

[Cactus Flower]

I paid my rent with a Money Order. The apartment complex claimed they never received it. I had to pay rent again and with a late fee. I tried tracking down the money order for MONTHS with western union (the issuer) and got nothing. I lost hundreds of dollars. I will never pay anything with a MO again. If I cannot pay by CC or personal check I will get a cashiers check from my bank.

 

I would always recommend using USPS Money Orders, they are much easier to track down.

 

I am not sure how easy they are to replace, but they can tell you instantly if the MO has been cashed.

 

They are the ONLY type of MO I will ever use, when I have to.