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Archive 2013 · Postal Money Orders

  
 
gcoulson
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p.1 #1 · Postal Money Orders


I have a rather silly question to ask:

If someone is offering to pay for a lens using Postal Money Order, how do they accomplish this if the limit for USPS Money order is $1000 and the lens is worth more than that?

Secondly, how do you cash a USPS money order for that amount? I can't imagine just walking into my local USPS office and asking for $1000! Chances are, they won't have that on hand in their two little cash registers.



Sep 14, 2013 at 08:08 PM
mitesh
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p.1 #2 · Postal Money Orders


The buyer can always purchase several money orders totaling the sales price of the lens. According to USPS website, money orders can be cashed at your bank.


Sep 14, 2013 at 08:19 PM
trenchmonkey
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p.1 #3 · Postal Money Orders


I've deal with them on several occasions, no biggie. I wouldn't ship the lens
until they're cashed, however...there are bogus M.O.'s out there, Just sayin'



Sep 15, 2013 at 07:46 AM
ronfronberg
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p.1 #4 · Postal Money Orders


Any source of funds, I would not ship until the funds have cleared.


Sep 15, 2013 at 12:06 PM
trenchmonkey
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p.1 #5 · Postal Money Orders


ronfronberg wrote:
Any source of funds, I would not ship until the funds have cleared.

I do it all the time with established FM'ers, zero issues. It works both ways, dude.
It's called trust AND one has to participate just a tad more if you expect to share the love.



Sep 15, 2013 at 04:21 PM
anthonysemone
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p.1 #6 · Postal Money Orders


I can recall several transactions here on FM where I've cross shipped to established members, cross-shipped in advance of payment, sent gear w/o payment for the FM'er to check out that the item was what he needed. Will and I have done a couple of those, as I recall. Haven't been burned yet, though, as the Great Yogi, said "there's a first time for the first time" or something like that.


Sep 15, 2013 at 04:36 PM
DanBrown
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p.1 #7 · Postal Money Orders


anthonysemone wrote:
as the Great Yogi, said "there's a first time for the first time" or something like that.



I'm skeptical that Yogi Berra said that. Yogi Bear may have definitely uttered it, however, since he wasn't the average bear.



Sep 15, 2013 at 05:34 PM
jimmy462
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p.1 #8 · Postal Money Orders


Hi gcoulson,

I've made nearly all of my B&S purchases with USPS M.O.'s, and I've specifically requested of my sellers to get them cashed in before sending along the merchandise...I like my sellers to be happy. On purchases over $500 I've offered to send Certified Bank Checks, though, on a couple of occasions, I've had to send multiple USPS M.O.'s, as well. One of the added comforts of USPS M.O.'s is that they can be cashed, on the spot, right at the P.O.. Maybe it's because I'm old-school and like to deal with folks on a personal level that I do things this way...that, and I'm never inpatient with waiting for an item to arrive. Respect others, extend trust, and establish rapport...that folks respond in kind, and both parties are looking to make each other happy, that's the making of a great transaction.

Well, that's what my Mom and Dad taught me.
Jimmy G



Sep 15, 2013 at 11:19 PM
Mike1.6
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p.1 #9 · Postal Money Orders


DanBrown wrote:
I'm skeptical that Yogi Berra said that. Yogi Bear may have definitely uttered it, however, since he wasn't the average bear.


He did say; " I really didn't say everything I said."



Sep 16, 2013 at 11:00 AM
anthonysemone
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p.1 #10 · Postal Money Orders


^^^^^


Sep 16, 2013 at 12:40 PM
jefferies1
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p.1 #11 · Postal Money Orders


NO. STOP. Never accept Cashier Check. Money Order for merchandise. They are the most faked documents around. 15 years ago they were safe, not today.

If you do take one call to verify it is valid before you ship. In fact I would want it to clear first. That can take a couple weeks.



Sep 16, 2013 at 01:28 PM
aborr
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p.1 #12 · Postal Money Orders


I have no problem accepting USPS money orders for payment. They can be exchanged immediately for cash at any US post office. There's no "clearing" necessary because it's being redeemed by the same institution that issued it.


Sep 16, 2013 at 05:17 PM
trenchmonkey
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p.1 #13 · Postal Money Orders


jefferies1 wrote:
NO. STOP. Never accept Cashier Check. Money Order for merchandise. They are the most faked documents around. 15 years ago they were safe, not today.

If you do take one call to verify it is valid before you ship. In fact I would want it to clear first. That can take a couple weeks.

This sage advice from someone with ZERO FM feedback paranoid, might be an understatement.



Sep 16, 2013 at 05:26 PM
jefferies1
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p.1 #14 · Postal Money Orders


While operating an online business selling about $450,000 a year I received at least 2 fake cashiers checks and 2 fake money orders. Would have been more but I made them send a Drivers license copy with the check. Also totally made up. I lost noting because I called the banks or held the merchandise while waiting for the check to clear. Any half way smart thief who can make a fake check would run up several good ratings by selling low end merchandise while getting ready for the grand finale. Take the advice or not. It is just a common red flag for those doing online business.


trenchmonkey wrote:
This sage advice from someone with ZERO FM feedback paranoid, might be an understatement.




Sep 16, 2013 at 05:47 PM
Wahoowa
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p.1 #15 · Postal Money Orders


aborr wrote:
I have no problem accepting USPS money orders for payment. They can be exchanged immediately for cash at any US post office. There's no "clearing" necessary because it's being redeemed by the same institution that issued it.


Most USPS post offices won't be able to cash a $1,000 MO. For much lower amount, yes.

After 48 hours of the date the MO was originally purchased, you can call a toll free number to verify it.

https://www.usps.com/shop/accepting-money-orders.htm



Sep 16, 2013 at 08:48 PM
lukeb
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p.1 #16 · Postal Money Orders


Will and Whoowa have provided excellent advice - also found this article:

Counterfeit Money Orders

The latest scam to hit American consumers involves counterfeit financial instruments. It's costing victims millions of dollars each month. Counterfeit checks and money orders — including postal money orders — are used in the scam, which often starts with what appears to be an innocent contact via an Internet chatroom or by email.

Con artists posing as students, tourists, and overseas military personnel ask for help in cashing checks and money orders, or target people looking for love or companionship, in order to exploit their vulnerability. Online auctioneers are also at risk. Scammers buy goods or services on the Web and offer payment by check or money order — often in excess of the actual value of the goods or services.

In most cases, con artists ship the check or money order and ask the victim to cash it, keep a portion as a "gift," and wire back the rest, usually to an overseas address.

Bank customers are responsible for the checks they deposit, and victims must repay the bank for bad checks. Federal law requires banks to make the funds you deposit available quickly, but it's important for consumers to know that, just because you can withdraw the money, it doesn't mean the check is good. Banks often release funds from a cashier's check or money order before it clears.

Why are there so many victims?
Con artists have found a means of exploiting the charitable nature of Americans. This confidence scam plays to our core values as a society, which often blinds our judgment in dealing with the real issue. Additionally, the Internet brings this scam into our home, where we feel most secure and are more vulnerable.

There are also "non-victims." Anyone who agrees to cash the instruments on behalf of a foreign citizen and keep a portion for themselves are not victims, they are accomplices.

Why Postal Money Orders?
Americans trust the U.S. Postal Service and the security provided by the U.S. Postal Inspection Service. Consumers often believe, incorrectly, that postal money orders and cashier's checks are "good" if they're cashed by a bank and are not subject to recourse. This is not true.

Postal Money Order Security Features
Similar to U.S. currency, postal money orders are designed with colored inks, watermarks, and security threads. Become familiar with the security features of genuine postal money orders:

Watermarks of Benjamin Franklin, visible when held to the light, run through the white oval on the left front side of the money order. Watermarks are also visible from the reverse side.
A dark security thread runs from top to bottom to the right of the Franklin watermarks. When held to the light, the thread reveals the microprinted letters "USPS" alternating right-side up and upside down throughout the thread. The letters are not visible if not held to the light.

Additional features you should be aware of:

Warning instructions are printed on the reverse of postal money orders.
Denominations are displayed in two locations, on the front, with no discoloration around the dollar amounts (discoloration may indicate alteration).
Maximum value of $1,000 on domestic/$700 on international postal money orders.

Where the Counterfeits Come From

Most counterfeits originate overseas. They're produced by an off-set printing process, which creates a document with an authentic appearance. However, fraudsters can't replicate the security features of genuine postal money orders.

For additional information and resources on fraudulent money orders, call the Money Order Fraud Hot Line, run by the Inspection Service's Criminal Investigative Support Center, at (800) 372-8347.



Sep 25, 2013 at 03:12 PM
Cliff L.
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p.1 #17 · Postal Money Orders


I stopped accepting US Postal Money orders years ago, on the advice of my bank. Due to the high incidence of fraud/counterfeiting, they hold them for 35 business days before releasing the funds.


Sep 28, 2013 at 06:11 PM
jimmy462
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p.1 #18 · Postal Money Orders


molson wrote:
I stopped accepting US Postal Money orders years ago, on the advice of my bank. Due to the high incidence of fraud/counterfeiting, they hold them for 35 business days before releasing the funds.


Hi Molson,

As a USPS Money Order user I was a bit surprised by your information so I went to check on any changes that might have occurred as far as Federal Banking Regulations and Fund Availability with various forms of deposit. The folks at my Post Office have always maintained a 2-day clearing time at banks if the denomination was too large for the local P.O. to cash.

Something seemed amiss here.

In the course of this "look up" I stumbled upon a post over at Naturescapes from back in 2007 with nearly the identical wording of your post...

NatureScapes.Net • View topic - foreign money orders as payment:
http://www.naturescapes.net/forums/viewtopic.php?f=38&t=102582

...so clearly "some bank", "somewhere" has been telling their customers this "35-day" information. The problem is that it is not true.

When it comes to how long a bank may hold funds on a USPS Money Order the law is quite clear... next business day. Hopefully this article will help clear the air...

MsMoney.com - Banking & Credit - How Long Can a Bank Hold Your Check?:
http://www.msmoney.com/mm/banking/articles/bank_holdcheck.htm

The actual statute reads...

(c) Certain check deposits— (1) General rule. A depositary bank shall make funds deposited in an account by check available for withdrawal not later than the business day after the banking day on which the funds are deposited, in the case of—

(i) A check drawn on the Treasury of the United States and deposited in an account held by a payee of the check;

(ii) A U.S. Postal Service money order deposited—
...etc....

...as found here...

eCFR — Code of Federal Regulations:
Regulation CC
§ 229.10 Next-day availability.

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=adef7b5def44aa66603f7da78b9f3301&rgn=div8&view=text&node=12:3.0.1.1.10.2.8.1&idno=12

...and here...

eCFR — Code of Federal Regulations:
Regulation CC
§ 229.12 Availability schedule.

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=adef7b5def44aa66603f7da78b9f3301&rgn=div8&view=text&node=12:3.0.1.1.10.2.8.3&idno=12

Perhaps your bank was referring to some other Money Order issuing institution? Or, maybe, the clerk and/or agent just didn't know their facts? I'd be curious as to your asking your bank for a clarification on their policy!

As I mentioned in my previous post in this thread...I use them almost exclusively for my purchases, because I like to keep my sellers happy!

Best to you,
Jimmy G





Sep 29, 2013 at 10:12 AM
mitesh
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p.1 #19 · Postal Money Orders


Jimmy,

Couple of things may be in play here:

1. Molson is in Canada, so perhaps their clearing process and regulations are different. It is likely that all provisions of the section of the CFR of the USA that you referenced do not apply to Canadian financial institutions.

2. Making funds available is not the same as cleared funds. Should the money order be determined to be counterfeit, the bank would debit your account for the amount of the deposited money order or otherwise seek recourse. Just like a check that bounces.



Sep 29, 2013 at 11:42 AM
jimmy462
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p.1 #20 · Postal Money Orders


Hi mitesh,

That I were interested in purchasing an item from one of our kindly neighbors to my north off the B&S board I would certainly extend to them the same level of courtesy as I do to my fellow citizens here in southland...an offer to pay by USPS Money Order...or, if they preferred, by International Money Order. It seems the folks at the Canadian Postal Service have extended to us here in the U.S. the same respect for our monetary instruments as we show them and theirs...they'll cash either a USPS M.O. or International M.O. right there at their Post Offices! (In fact I purchased an IR camera off these boards from a seller in Canada with no problems using this method.)

From the Canada Post site...

Purchasing and cashing a postal Money Order

Canadian, U.S. and certain International postal Money Orders can be cashed at banking facilities as well as Post Offices. Be advised that some financial institutions charge a fee for cashing foreign postal Money Orders.


...which can be found here...

Canada Post - Money Orders for Personal Use - Send Money Securely by Mail:
http://www.canadapost.ca/cpo/mc/personal/productsservices/shop/moneyorders/default.jsf

I'll leave our Canadian friends to searching through their own country's federal regulations on banking.

Anyhoo, I hope this helps!
Jimmy G



Sep 29, 2013 at 09:13 PM
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