How do you know if the money order payment you received from Canada for an ebay sale is real, or fake.  See details here to learn more about the money orders issued by the post office, and how to determine if it is a valid moneyorder.  

Money Orders issued by the USPS (United States Postal Service) are my preferred method of payment over bank-issued money orders for those that choose not to pay with PayPal.  Why?  First, these payments can be immediately cashed at the U.S. Post Office - with no delay in clearing funds, and second, they are immediately verifiable at the Post Office as genuine based on the serial number imprinted on the face. Here is some information provided by the United States postal service.

MOST RECENT UPDATES ARE POSTED; UPDATED 8/08/08 WITH INFO ON NEW CANADA POST MONEY ORDER IMAGE.
If you are sending a money order to the states, or you have received one from Canada, only send or receive the pale green one, denominated in US dollars, exclusively for the US. UPDATED 12/08/08 WITH INFO ON NEW USPS POSTAL MONEY ORDER IMAGES.

Money Order Security Features:

Things to check for to ensure a Money Order is authentic. (source: usps.com*)
You can print a reference card from this link here:             http://www.usps.com/missingmoneyorders/_pdf/not299Oct2008.pdf

December 2008 updates:

Things to check for to ensure a NEW Money Order is authentic. (source: usps.com*)
You can print a reference card from this link here:             http://www.usps.com/missingmoneyorders/_pdf/not299Oct2008.pdf

(style 1)  

(style 2)

How to tell if it’s official

Hold the money order up to the light and look for the following security features:

• Ben Franklin images (watermarks) repeated on the left side (top to bottom).
• A vertical, multicolored thread that weaves in and out of the paper to the right of the Franklin watermark.
  
  When held to the light, the thread appears continuous with alternating horizontal dark and light bars behind it, and the letters USPS repeating backward and forward throughout the thread.
  

If either of these security features is not present when the money order is held up to the light, you are holding a fraudulent Postal Money Order.

Also be aware that:

• Denominations are indicated on two locations.
• Discoloration of the denomination amounts indicates erasure (fraudulent).
• Maximum value for domestic postal money orders is $1,000.
• Maximum value for international postal money orders is $700. (Maximum for Canadian money orders is $1,000)
  

CANADIAN CUSTOMERS: 

(Phased out style for US Dollar denominated Money Orders)

Note:  NEW Canadian dollar denominated money order image is not shown here.

(New Canada Post Money Order -- Pale Green USD only)

If you accept mailed payments from Canadian eBay buyers, note that U.S. Dollar denominated Canada Post Money Orders are not only verifiable via toll-free number printed on the money order, but you get a verification code to enter on the back side knowing it is good; and, better yet, it can also be cashed at any U.S. Post Office (and major bank) in the USA.  No delays or international check cashing or currency conversion uncertainty.  And no PayPal international cross-border payment fees.

Things you should know:

1. They get them at their post office for $4.95 fee;
2. Are secure and guaranteed way to send money to anywhere in the US;
3. NEVER EXPIRE, so you can use them anytime;
4. Redeemable at ALL US post offices and major banks;
5. Replaceable if lost or destroyed;
6. FREE inquiry service (photocopy of cashed money order is available); and
7. Available up to $999.99 US

Things to check for to ensure a Canada Post issued money order is authentic. (source: canadapost.ca *)

Canada Post advises that all Canada Post Money Orders have the following features:

1. a maximum value of $999.99 Canadian or U.S. currency;
2. a Beaver-shaped watermark which is visible when held up to light; (The Beaver-shaped watermark appears on the top half of the money order.)
3. the toll free number 1-800-563-0444, printed on the back of the money order, to verify its validity;
4. rainbow printing; and
5. the serial number, date, office number, and amount which is visible on the reverse side of the money order; however the numbers are inverted.
   
   While the currect supplies are be exhausted, the new money orders are being phased in.
   
6. NEW: Watermark (introduced in 1994)  Money Orders has one to two horizontal beaver-shaped watermarks which can be seen in the top portion of the money order when held up to the light.
• Serial numbers started with 692600 001 when watermarks were first issued
7. NEW: Micro Printing  All horizontal lines on the front bottom portion of the money order are made up of micro printing which read: 'CPCSCPCPC..
8. NEW: 1-800 PHONE NUMBER  The only phone number to verify valiidity of amounts is 1-800-563-0444. A fraudster may alter their conunterfeit copy with an alternate phone number and provide false validation codes.
9. NEW: Florescent Fibers  Most of the writing on the back of the money order is visible with an Ultra-Violet (UV) light.  Fibers throughout the document can also be observed with UV light.
10. Further secuiity features. 
    

• Apply heat to the pink and white box by holding the area between thumb and forefinger.  The pink color whould disappear and re-appear within a few seconds.

• Pink verification box was introduced in 2006 beginning with serial numbers 816 504 001

• Polarized ink on new 2007 money orders. 

• Serial numbers for CDN- and UK-denominated money orders are formatted 100 000 000 (begin with number 1), and USD-denominated ones are formatted 000 000 000 (begin with a 0)

• Each money order is pre-barcoded, a uniquely-generated security code,

• Each money order will ONLY BE ISSUED with the senders AND recipients name printed directly on the money order AT TIME OF SALE (and only a driver's license, health card, or passport is used for ID for larger-denominated transactions exceeding $3000.)

Other types of money orders: FDIC alerts

The Federal Deposit Insurance Corporation releases bulletins about current money orders, and other information, in banking circulation.  You can read the 2007 alerts here: http://www.fdic.gov/news/news/SpecialAlert/2007/index.html (Note: you can change 2007 to current, or other years, on future searches.)

*Check the usps.com and canadapost.ca web sites for any updates to their Money Orders (date posted here 7/2007)