Money orders and bank drafts: when paper still makes sense

Somewhere a landlord, a registry office or an elderly relative still insists on “a draft” or “a money order”. Fair enough. Paper has a few real strengths. But it also comes with a list of limits, delays and fraud traps that an online transfer doesn’t have.

Here’s how to decide, one step at a time.

Step 1: Know which instrument you’re dealing with

Names get used loosely, so pin them down first.

Money order. This is a prepaid paper payment. You hand over cash (or sometimes pay by debit card), plus a small fee, and get a printed order for a fixed amount, which the recipient can cash or deposit. It is usually sold by a post office, a bank or a shop. The amounts are small by design.

Bank draft (also called a banker’s draft, bank cheque or, in the US, a cashier’s check) is issued by a bank and drawn on the bank itself. A UK guide to the product explains the point neatly: the money leaves your account when the draft is issued, not when it is cashed, so the draft is much less likely to bounce than an ordinary cheque. International versions can be written in a foreign currency, so ask the issuing bank which day’s rate applies.

Personal cheque. Different animal, slower and riskier again. That belongs in its own guide.

Step 2: Check whether the product still exists where you are

This one catches people. In the United States, the Postal Service says on its own site that it “no longer sells international money orders”. It also stopped cashing existing international money orders as of 1 October 2025, and says foreign postal operators in a list of 13 countries have stopped too. If you’ve got an old international order in a drawer, don’t assume it can still be cashed. Its fraud-check guidance still lists a $700 ceiling for international orders ($500 for El Salvador or Guyana), while domestic orders go up to $1,000.

Domestic USPS money orders do continue. As of November 2026, USPS lists a $2.65 fee for orders up to $500 and $3.75 for $500.01 to $1,000, says they never expire, and says they can be cashed at any Post Office, most banks and some shops with a photo ID.

So for a cross-border payment from the US, “buy a money order and post it” is no longer a normal route. A commercial money order from a bank or shop may still exist, but you’d need to check that the recipient’s country and bank will accept it, and many won’t.

Elsewhere, availability varies. The practical test: ask the recipient’s bank or office in writing whether they’ll accept the exact instrument, in that currency, and how long they hold it before releasing the funds.

Step 3: Weigh speed and cost honestly

Paper moves at the speed of the mail. A guide from a price-comparison site puts international drafts in a range from one to three weeks by one table and four to six weeks by its FAQ. It contradicts itself, which is rather the point: nobody can promise you a date. Add the time for the recipient’s bank to clear it. A UK explainer says a banker’s draft deposited domestically usually clears in one to three business days; an international one can take much longer, often with a hold.

On cost, the sticker fee is only the start. The issuing bank typically charges a flat fee per draft (the UK explainer gives a range of £10 to £35), the receiving bank may charge to process it, and the exchange rate used on a bank draft can carry a margin on top of the mid-market rate. Our guide on wire transfers against online transfer services explains where those margins hide.

A worked example (illustrative numbers)

Say you want to send 2,000 GBP to a Kenyan shilling account. Assume a mid-market rate of 150 shillings per pound. All other figures are made up for the example.

	Bank draft by post	Online transfer
Fee	20 GBP	4 GBP
Margin in the rate	3%	0.6%
Receiving bank charge	2,500 KES	0
Recipient gets	285,590 KES	297,604 KES

That’s a difference of about 12,014 shillings, roughly 4% of the online figure, and it takes no account of the weeks of waiting. Check the going rate yourself on the live GBP to KES page; rates are refreshed hourly. Both columns here are invented, so replace them with real quotes before you decide.

Step 4: Know the fraud pattern

This is the part that hurts. Paper instruments are copied, forged and altered, and the most common trick is the overpayment scam. Someone “buys” something from you, sends a draft, cashier’s check or money order for more than the price, and asks you to refund the difference by wire. Your bank may credit the deposit within days, which looks like it cleared. Later the instrument can be found to be counterfeit, and the bank can take the money back. You have already wired real funds.

Finder’s guide mentions that many scams involve fake cheques or postal orders. The Cambridge Currencies explainer says counterfeit drafts are a known scam, particularly in private sales such as vehicle purchases, and advises verifying the draft directly with the issuing bank using a number you find yourself, never one supplied by the buyer. USPS gives its own checks for money orders: a watermark and security thread, with the written and numeric amounts matching. Its verification line and the Postal Inspection Service handle suspected fakes.

Take-away rule: funds “available” in your account is not the same as funds “cleared”. Do not send anything of real value against paper you’ve just deposited.

Step 5: What happens if it is lost

Slowly, is the answer. Paper can be lost in the post, stolen or damaged. On the USPS page, a lost or stolen money order can’t be stopped, but it can be replaced, with confirmation taking up to 30 days and an investigation up to 60. The domestic replacement fee is $23. For bank drafts, the UK explainer notes that lost or stolen drafts can tie up funds for weeks or months, and the process varies by bank.

Compare that with a bank transfer or card-funded online transfer, where you can usually track the payment and, if something is wrong, contact the provider the same day. For more on how long these things take, see our piece on how long international transfers take.

When paper still makes sense

Some real cases remain, and they are narrow.

The recipient will only accept it, for instance a court, a registry or a landlord with fixed rules.
You have no way to get the recipient’s account details, or they have no account.
You need a paper record that the payer’s money was committed on a specific date.
The amount is small and domestic, and cash isn’t an option.

In every other case, an online transfer wins on cost, speed and traceability. If you’re torn, get two quotes with the amount the recipient would receive, not the fee. Our safe sending guide lists the pressure tactics to watch, and you can compare a few corridors on the rate grid.

A US tax note

This one matters if you are tempted to buy a money order or cashier’s check with cash to fund a remittance. US law now taxes outgoing remittances at 1% when they are paid for with those physical instruments, and the IRS proposal published in April 2026 also names traveller’s checks. Buying the instrument with cash and using it straight away is exactly what its anti-avoidance rule targets. Paying from a bank account or by card keeps you out of it. Draft rules can change, so ask your provider or a tax adviser. General information only, not tax advice.

Sources

Checked: November 2026