Table of Contents
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’s 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, while wire transfers are electronic. Wire transfers cost more, but consumers can send much more money via wire transfer, 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, and 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 upfront. You can pay for a money order with cash or a debit card. You typically can’t pay with a check or 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 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 4.2% 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 payer some recourse if a mistake has been made. (But 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, 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 such as wire transfers or a cashier’s check.
• Security concerns: While money orders do offer some 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, so they could get lost in the mail.
• Slower payment: 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 (such as 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. 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 on the same day in some cases (say, if the payer 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, such as 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:
• Higher limits: 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 may even be safer than money orders for sending payments. The money is guaranteed, and wire transfers are harder to reverse once initiated, offering greater assurance for the recipient that their money will arrive. 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 payer 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 straightforward 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, and 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’re 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 $20 to $35 for outgoing domestic transfers, though some institutions may waive this fee • Often range from $35 to $50 for outgoing international transfers • Often up to $25 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 the money order, which can delay payment |
| Security | Generally considered safe, though difficult to reverse, which makes wire transfers a favorite method of scammers | Safer than personal checks but has the potential to be lost or stolen and is 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, and 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, such as 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 when it may make more sense to use a wire transfer, 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, such as:
• 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 them out immediately upon purchase makes it harder for someone to access your money if the document is 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 send significantly more money quickly and with added security.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.
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 217 million wire transfers in 2025. In the same year, the U.S. Postal Service reported processing 53 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.
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