Money order vs wire transfer : Which one is better in Canada?

Not sure whether to send a money order or a wire transfer?** **Both options have been around for ages and are still widely used in Canada—but they serve different purposes.

In this article, we’ll walk you through the differences, their pros and cons, and when you might want to skip them entirely try Wise - a more flexible way to send money.

What is a money order?

A money order is a paper-based payment method that works much like a cheque, but with one key difference—it’s prepaid and issued for a specific amount of money. Because it’s prepaid, a money order can be a reliable option when cash isn’t safe to carry or a cheque might not be accepted. In Canada, money orders are often used by those who don’t have access to a bank account or who want to send money securely via mail.

How money orders work

In Canada, money orders can be purchased from Canada Post, most banks, and some credit unions. To get one, you’ll need to pay the full amount up front, plus a small service fee, which varies by provider. For example, Canada Post charges about $8.50 for domestic money orders (up to a $999.99 limit per order)¹.

When purchasing a money order, you’ll fill in the name of the recipient (the payee), the payment amount, and sometimes your own information as the sender. Once completed, the money order can be sent to the payee, who will then need to visit a post office or bank to cash or deposit it. The payee must show valid ID and may need to verify the built-in security features.

Your receipt will include a serial number that can be used to track or cancel the money order if needed, so hang onto it just in case. While generally secure, money orders can be lost or counterfeited, so it’s always smart to hold on to your documents until the payment clears.

When to use a money order

​Money orders can be a handy and secure way to send or receive funds when other payment options aren’t available or practical. Here are a few situations where a money order might make sense:

• Sending money by mail: Since they’re prepaid and only cashable by the named recipient, money orders are a safer option than sending cash.
• Paying without a bank account: If you don’t have a bank account but need to pay a bill or make a purchase, a money order is a reliable alternative.
• When guaranteed funds are required: Because they’re prepaid, money orders won’t bounce like personal cheques—making them a good fit for transactions that need a sure thing.
• Sending money internationally: They can be useful when sending money to countries where digital transfers aren’t widely used or trusted. However, not all countries accept them.
• Keeping your banking details private: If you want to avoid sharing your personal bank info, money orders let you make payments without giving anything away.

Advantages and disadvantages of money orders

Money orders offer a safe and reliable way to send payments when cash, cheques, or online transfers aren’t practical (or available). They’re often used by people who don’t have a bank account or need to mail a payment securely. But while they come with some helpful benefits, there are a few drawbacks to think about too, like low limits and limited tracking options.

Pros and cons of money orders

What is a wire transfer?

A wire transfer is a secure, electronic way to send money directly from one bank account to another. Commonly used for large or time-sensitive transactions, other reasons for making wire transfers include real estate purchases, tuition payments, or international business transfers.

Unlike cheques or money orders, wire transfers are processed through a network of financial institutions and usually can't be reversed once sent.

How wire transfers work

Wire transfers in Canada are typically handled by financial institutions using systems like Lynx² for domestic CAD payments, and SWIFT for international transfers.

To send a wire, the sender shares the recipient’s info with their banksuch as:

• Their name
• Address
• Bank account number
• The bank’s routing number or SWIFT/BIC code.

Once processed, funds are electronically moved and processed in real time or within one business day³.

For domestic transfers, the money often arrives the same day, and the recipient can usually access it immediately. International transfers may take 1–5 business days⁴, depending on the destination country, currency conversion, and intermediary banks involved.

Once the transfer is complete, the funds are considered final, so it’s important to double-check your details before hitting send

When to use a wire transfer

Wire transfers are best suited for situations where speed, security, and certainty are essential. Because the funds are transferred quickly and can’t be reversed, they’re often used for:

• Large one-time payments, like real estate closings or vehicle purchases
• International money transfers, when paying suppliers, tuition, or sending remittances abroad
• Urgent or time-sensitive transactions that require same-day delivery
• High-value business payments where both parties need guaranteed delivery and confirmation
• Sending money to recipients who don’t accept e-transfers or other payment methods

Advantages and disadvantages of wire transfers

Wire transfers are a trusted way to move money quickly and securely when dealing with high-value or international transactions. However, while they offer speed and reliability, they might not be the best option for everyone..

Pros and cons of wire transfers

Money order vs. wire transfer: The differences

Both money orders and wire transfers are used to send funds securely, but they operate quite differently, with each suiting different types of transactions.

Speed

• Wire transfers are usually faster. Domestic wires often process the same day, while international wires usually take 1–5 business days.
• Money orders can take 2-4 business days⁶ , depending on mailing time and how it’s cashed.

Cost

• Money orders are generally cheaper to send, often costing less than $10 depending on where you purchase them (like Canada Post or a bank).
• Wire transfers are more expensive—often $30 to $80 or more per transfer—particularly for international payments.

Security

• Wire transfers are considered highly secure and are settled directly between financial institutions.
• For people without a bank account, money orders are also secure, but they can be lost or even counterfeited if precautions aren’t taken.

When to use them

• Wire transfers are best for high-value, time-sensitive, or international payments, like buying property, sending money overseas, or paying large invoices.
• Money orders are more suited for smaller, less urgent payments where you want an added layer of security over cash, such as paying the rent.

Reversibility

• Money orders can sometimes be cancelled and reissued if lost (though it can take time).
• Wire transfers, once sent, are usually final—so it’s crucial to double-check your recipient details before finalising the transaction.

When is one better than the other?

• Use a money order when you're dealing with smaller amounts, don’t have a bank account, or want a simple, low-cost way to send funds.
• Use a wire transfer when time matters, the payment is large or international, or when you need money to arrive quickly and securely.

Wise: a modern alternative for international transfers

Wise is a digital-first alternative to money orders and wire transfers for domestic and international payments. Unlike banks, which often markup exchange rates and charge steep wire fees, Wise uses the mid-market exchange rate with low, transparent fees that start from 0.48%, depending on the currency.

With a multi-currency account, Wise lets you hold and convert over 40 currencies and receive money using local account details in 23 different currencies, including USD, EUR, and GBP, making it easier to send or receive funds internationally without incurring hidden conversion costs or delays.

Built for convenience, you can send money abroad in just a few clicks - right from your phone or desktop.

For cross-border payments, Wise can often be faster and more cost-effective than either a wire transfer or a money order if you're sending small, mid-size, and even high-value transfers or need to manage multiple currencies.

Finding the right fit for your money transfers

Money orders are better suited for small, one-off payments when you don’t have a bank account or need a paper trail. Wire transfers, on the other hand, are ideal for larger or time-sensitive payments when speed and security are essential.

But both can be slower and more expensive if you want to send money internationally and are dealing with currency conversion. That’s where Wise can offer a more efficient solution. With transparent fees, the mid-market exchange rate, and multi-currency support, Wise makes it easy to send money internationally without the typical fees and hassle.

Sources:

1. Send money orders from the post office | Personal
2. Wire payments
3. What Is a Wire Transfer? How It Works, Safety, and Fees
4. How long does an international wire transfer take? | Stripe
5. Sending and Receiving Wire Transfers | CIBC
6. How do money orders work in Canada?