Money Order vs. Wire Transfer: What’s the Difference?

By Timothy Moore. January 13, 2025 · 10 minute read

This content may include information about products, features, and/or services that SoFi does not provide and is intended to be educational in nature.

Money Order vs. Wire Transfer: What’s the Difference?

Wire transfers and money orders (SoFi currently offers domestic wire transfers, but not money orders) are two payment methods using guaranteed funds. This offers assurance to the recipient of the payment that the funds will go through. While both wire transfers and money orders enable you to move money safely, the two methods are vastly different.

So what is the difference between money orders and wire transfers? Money orders are a low-cost form of paper payment with low transaction limits and a slower process. Wire transfers are electronic; while they cost more, consumers can send much more money via wire transfer — and faster.

Key Points

•   Money orders are low-cost paper payments with low transaction limits, while wire transfers are electronic, cost more, and allow for larger, faster transactions.

•   Wire transfers are generally considered safer than money orders, which can be lost or stolen.

•   Money orders are ideal for small amounts and those without bank accounts, while wire transfers suit large transactions and international transfers.

•   To ensure safety, only send money to known recipients and verify all transaction details.

•   Alternatives to these methods include cashier’s checks, peer-to-peer apps, and bank transfers.

What Are Money Orders?

A money order is a guaranteed paper payment method that you can purchase at a bank or credit union, post office, Walmart, MoneyGram or Western Union, or even some supermarkets and convenience stores. Money orders generally cost between one and a few dollars, though they can vary by vendor, denomination, and other factors.

Unlike a personal check, which draws funds from your checking account once the recipient deposits the payment, money orders require payment from the sender up front. You can pay for a money order with cash or a debit card. You typically cannot pay with a check, nor can you usually buy a money order with a credit card.

Money orders do not require a bank account, but they are usually limited to $1,000 domestically (and $700 internationally). This makes them less ideal for larger purchases. Money orders also require that you hand the paper order over to the recipient or send it in the mail, which can delay the payment.

Pros and Cons of Money Orders

So what are the pros and cons of money orders? Consider them both:

Benefits of Money Orders

Here are some of the advantages of using money orders:

•   Low cost: Money orders can cost less than a dollar and typically no more than a few bucks.

•   No bank account required: Approximately 4.5% of American households don’t have a bank account; money orders offer them a secure way of making payments.

•   Safety measures: Money orders do not have any account information on the paper (unlike personal checks) and are prepaid, offering more assurances to the recipient. Also, they can be reversed if not yet cashed, giving the payor some recourse if a mistake has been made. (If a money order has been cashed, then you likely can’t get a refund.)

•   Ease of purchase: You can buy money orders at many locations you may be visiting during a day of errands, including convenience stores, supermarkets, the bank, the post office, Walmart, and MoneyGram and Western Union.

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Drawbacks of Money Orders

While money orders offer an easy way to send guaranteed payments, they do have some disadvantages:

•   Low limits: Money orders are typically capped at $1,000 (even less when sending an international money order). If you need to make a larger payment, you’ll have to consider options like wire transfers or a cashier’s check.

•   Security concerns: While money orders do offer safety measures to protect your funds, consumers should be cautious. Because you have to fill out the money order after purchasing it, you risk losing it (or having it stolen). If a criminal gets their hands on it before you complete it, they could easily fill it out to themselves and take the money. In addition, money orders are not done online; this means they could become lost in the mail.

•   Speed: Because money orders are prepaid, recipients can usually access the funds faster than they could with a personal check. However, electronic payment methods, such as peer-to-peer payment apps and wire transfers, can get money to them faster, without the need to mail a piece of paper.

What Are Wire Transfers?

A wire transfer is an electronic transfer of funds that is administered by banks, credit unions, and transfer service agencies (like Western Union and MoneyGram). Wire transfers are a secure form of guaranteed payment that consumers can use to send money domestically and internationally.

Wire transfers are bank-to-bank transfers. No physical cash is moved; rather, the sender initiates a wire transfer by paying the fee and providing information about the recipient and their bank account.

While domestic wire transfers may take up to three days, they can be completed in the same day in some cases (say, if the payor and payee bank at the same financial institution). This can make them a fast way to send large payments from, say, one checking account to another.

Unlike money orders, wire transfers do not have low transaction limits; people may send up to $100,000 via wire transfer — or even more. This makes wire transfers ideal for major transactions, like buying a house. Wire transfers are also a secure way to send money to family members living in another country.

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Benefits of Wire Transfers

Wire transfers offer consumers a number of advantages, including:

•   High amounts: Wire transfers allow you to send large sums of money, as long as you have the funds available in your bank account.

•   Safety measures: Wire transfers can be even safer than money orders. The money is guaranteed, and wire transfers are harder to reverse once initiated — offering greater assurance for the recipient that their money is coming. As long as you provide the correct bank information when conducting a wire transfer, you can be confident that the recipient will get their money.

•   Speed: Though wire transfers can take up to three days domestically, they can be faster (arriving even on the same day) if the payor and payee keep their accounts at the same bank. International wire transfers often take between one and five days. This offers a convenient way to move large sums of money efficiently.

•   Ease of purchase: You can conduct wire transfers in person, over the phone, or even online. This makes it easy to wire money domestically and internationally.

Drawbacks of Wire Transfers

So what are the disadvantages of wiring money? Here are a few to consider:

•   Higher cost: Wire transfer fees can cost more than other options. Each institution has its own fee structure, but in many cases, both the sender and the recipient may have to pay wire transfer fees. Fees are generally higher for international wire transfers; senders may also have to pay for currency conversions when sending money abroad. For instance, sending an international wire transfer could cost up to $50 (see details below).

•   Difficult to reverse: Wire transfers are almost impossible to reverse once they’re initiated — and unless the financial institution made a mistake, they are impossible to reverse once the recipient’s bank has accepted the transaction into the checking account, savings account, or other deposit account.

•   Security concerns: While wire transfers are a safe way to send money electronically, this payment method is popular with criminals. Consumers need to stay vigilant and learn to recognize wire transfer scams and other common money scams. In general, you should only wire money to people you know.

Wire Transfers

Money Orders

Format Electronic Paper
Fees

•   Often range from $25 to $35 for outgoing domestic transfers, though some institutions may waive this fee

•   Often range from $45 to $50 for outgoing international transfers

•   Often $15 for incoming transfers, though some banks waive this fee

Generally $1 to $4
Limits Variable, but generally $100,000 or more Generally $1,000 domestically and $700 internationally
Speed Up to three days (can be same-day) May require mailing money order, which can delay payment
Security Generally considered safe, though difficult to reverse; this makes wire transfers a favorite method of scammers Safer than personal checks, but potential to be lost or stolen; also a method used by scammers
Availability Banks, credit unions, and money transfer services — in person, over the phone, and online Banks, credit unions, supermarkets, convenience stores, post office, money transfer services, Walmart — in person

When to Use a Money Order Over a Wire Transfer

While both money orders and wire transfers allow you to send guaranteed funds, there are times when a money order makes more sense, like when:

•   You’re transferring a small amount of money: Money orders are more affordable. If you need to transfer less than $1,000, a money order can save you significantly on fees.

•   You don’t have a bank account: Money orders are a great way for people without bank accounts to send money securely.

When to Use a Wire Transfer Over a Money Order

Likewise, there are times it may make more sense to use a wire transfers, like when:

•   You’re transferring a large amount of money: Money orders are usually capped at $1,000 while wire transfer limits may be $100,000 or higher. Many real estate transactions require wire transfers because of this.

•   You’re sending money internationally: Money orders may make sense if you can hand the piece of paper over to the recipient, but when you’re sending money internationally, money orders could stand the risk of getting lost in the mail. (Not to mention international mail may take longer.) Wire transfers are an efficient and safe way to send money internationally.

Keeping Yourself Safe When Using Wire Transfers and Money Orders

Whether you’re using a wire transfer or money order, there are a few things you can do to protect yourself and your finances, like:

•   Only sending money to someone you know: Scammers use both wire transfers and money orders to trick people out of their money. Avoid such scams by only sending money to people you know and trust.

•   Triple-checking all account info: To ensure your money goes to the right person, it’s a good idea to verify that all the information is correct, including the person’s name and bank account information. In the case of money orders, filling it out immediately upon purchase makes it harder for a person to access your money if the document were lost or stolen .

•   Verifying the transfer service: If possible, it’s a good idea to stick to a bank or credit union you trust for wire transfers and money orders. If you’re not using your financial institution, it’s wise to thoroughly vet the vendor before purchasing the money order or conducting the wire transfer.

The Takeaway

Both money orders and wire transfers offer secure methods for sending guaranteed funds. Money orders are more affordable but have lower transaction limits and may take longer. Wire transfers are electronic; while they cost more, they allow you to quickly send significantly more money — and with added security.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

Are wire transfers or money orders used more?

Both wire transfers and money orders are popular methods for sending money — but they’re used in different scenarios, which makes it difficult to compare usage statistics. Consumers often use money orders when they’re sending less than $1,000 and wire transfers for larger transactions.

That said, the Federal Reserve reported originating more than 193 million wire transfers in 2023. In the same year, the U.S. Postal Service reported processing 63 million money orders.

Are money orders or wire transfers safer?

Wire transfers are generally considered safer than money orders. While both wire transfers and money orders offer ample security features, money orders are susceptible to being lost or stolen since they are a form of paper payment. Wire transfers, on the other hand, are wholly electronic — processed only by the banks involved.

What are some alternatives to wire transfers and money orders?

Alternatives to wire transfers and money orders include cashier’s checks, peer-to-peer payment apps, and bank-to-bank transfers. Depending on the transaction and the relationship with the recipient, you may also be able to use the old standbys: cash and personal checks.


Photo credit: iStock/South_agency

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SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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