Chris,
There are money orders and there are POSTAL money orders. Any bank or
currency exchange or grocery store can write me a money order. It is an
instrument for poor people without checking accounts. They can use them to
pay bills or send money. It assures the recipient with the credibility of
the bank, currency exchange, or grocery store's account name.
A POSTAL money order is issued by an agency of the US Government. It
might be forged, but that's a federal crime...not a good idea! It's
different from a personal check or a standard money order.
All the banks I know of here in Chicago will not write international
financial instruments - checks or money orders. They will do wire transfers
at $35 each and then charge you 3-5% to do the currency translation.
I presumed they charged more for the International Postal Money Orders
because of the currency translation costs. I presume they have separate pink
International US Postal Money Orders for Canada because of the volume of
business done and because we had established some kind of special deal with
your government and banking system or postal service.
Regards, Bob S.
[EMAIL PROTECTED] writes:
> > US Postal Money Orders:
>
> > 1) Domestic use: Good only in the USA. Cost US$.80 at any US Post
> > Office. Negotiable at Banks, Currency Exchanges, local branches of
> > the US Post Office. Pale green color. Federal offense to counterfeit
> > these. Mail it yourself.
> > 2a) International for Canada: Cost US$3.00 at any US Post Office.
> > Negotiable in Canada (you tell me where). Pink in color. Mail it
> > yourself with your note.
>
> So, essentially, the only reason the banks bother to make "international"
> money orders for Canada is so they can charge you more for them and make
> more money. With all money moving electronically these days, it can't
> cost the bank any more money to redeem money orders cashed in Canada than
> those cashed in the US. I thought that the US ones might have some bonus
> insurance, or return privileges, or something extra that ones meant for
> Canada might not, have but it looks like I was wrong. If you think about
> it, why do they really need one money order for the US only and one for
> Canada?
