What is the difference between a cashier's check and a money order?

While a cashier's check and money order are very similar payment instruments, there are a few key differences between them. The cashier's check is considered legal tender and can only be issued by a bank. A money order can be issued by a bank, post office, grocery store or convenience store. Also, the money that is used for a cashier's check is drawn from the account of the payee. Both instruments guarantee payment for the recipient. Money orders are typically used for amounts that are less than $1000, while cashier's checks are used for larger amounts. 

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