![]() A safe and convenient way to pay for a significant purchase compared with cash.They’ll also validate your identity and stamp or mark the cheque to indicate the guarantee of payment for the recipient.īelow are some of the benefits and drawbacks of a certified cheque and scenarios where you may want to use one. The teller will verify that you have enough money in your chequing account to cover the transaction and allocate the funds accordingly. You can obtain a certified cheque only in person at a bank or other financial institution. When a financial institution issues a certified cheque for you, they earmark the funds to guarantee payment for the recipient.Īs a result, you’re barred from using these funds for any other transaction. In other words, when the payee deposits the cheque, the money will clear without a hitch. What is a Certified Cheque?Ī certified cheque is where the bank has verified that the payer has sufficient funds in their account to cover it. ![]() You can only purchase a money order using cash or a debit card, not a credit card. If you lack a bank account or credit card, a money order can serve as a viable alternative to ensure you can conduct a wide range of purchases. In some instances, the seller may insist on a money order to complete a sale, in which case you have no choice but to use one. The maximum amount of money you can send is $999.99 per documentĪ money order is a more secure and reliable payment method than cash or a personal cheque, especially if you’re sending it through the mail.īy opting for a money order, you have assurances that only the recipient listed on the document can cash it as the payment is guaranteed.Only the intended recipient can cash it, which significantly diminishes the risk of theft.The recipient is guaranteed to collect payment.It doesn’t contain sensitive banking details – only your name and address.To claim the funds, the recipient can deposit the money order at any financial instiatutionīelow are some of the benefits and drawbacks of money orders and when it’s ideal to use one. Once you’ve filled out the necessary details, you’ll receive a confirmation receipt with a tracking number, which can help you confirm when the money order is cashed. You must pay the face value of the money order (the amount you’re sending) to the issuing organization plus a service fee. To complete a money order, you must print your name and address and the recipient’s name on the front side of the document. You can purchase a money order at Canada Post, at one of the big banks, and some alternative lenders. It’s certified by the issuer, which means the recipient is guaranteed to receive the funds when they cash it. Money is available immediately when cashedĭo you need a bank account to request one?Ī money order is a physical document that serves as a secure form of payment.
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