This might be of interest if you use Postal Money Orders. 

This afternoon, I was standing in line at the PO.  The guy in front of me was trying to cash a Postal Money Order, apparently for a substantial sum.   

The guy had 2 forms of ID, etc., all in order.  After much conferring with the management, including one phone call, the counter clerk told the guy that the PO could not cash it.  Reason was that they did not have that much money in the building, per postal regulations.   

Eavesdropping, I thought I heard the counter clerk tell the guy that he (counter clerk) could not cash PMOs for more than $500.  No offer to help the guy, just adios.

This is a PO in a town of 15,000 and probably serves 20,000 to 25,000 people.   

What do you guys do with PMOs?

I totally agree with what Frank said. I've been able to cash MOs for maybe $200.00 or less but nothing over that. If they can't verify that they're legit then they shouldn't be issuing them.

JerryH
AKA Jerry_H

I live in a town of one million people, and couldn't get the USPS to cash a postal money order for $900. I've never tried again after that happened 5-6 years ago.

That was my thinking too! Why not cash it? I know I've had no trouble handing them a couple thousand dollars, other than they said it needed to be multiple MO, as they have a limit. But if there's a limit on how much they can cash, or have on hand, what did they do with my money? Rush someone to the bank to get it off the property?

This same situation happened to me at our local PO two weeks prior to Christmas.The amount was for $675,and the counter clerk told me she didn't have that much money and I could take it to my bank and deposit it or come back later.I did the latter and they cashed my PMO.

I had read that Postal Money orders are one of the most counterfeited and when you look at them I can see why. I have never had a bad one, and I have cashed (deposit) all of mine at banks or credit unions. reason I deposit is they will tell you that if it is bad they will go after the money from your account.

I live in a town of 76000.  This is a run in a friend of mine had with USPS. He purchased a handgun on Gun Broker.  The seller sold on GB and had a retail shop.
My friend sent an FFL and PO money order. The seller criticized my friend for sending payment before contacting the seller. My friend found out the seller did not have the pistol.  The seller returned the original money order.  The only place to get his money back was USPS. They had to void the money order to pay him back. The clerks only have $100.00 in change to start the day. They did not have enough money to pay my friend back. They told him to keep coming back and they might have enough money sometime. He asked if they could arrange to have enough money the next day.  They said no, and he would just have to keep checking with them. He asked for their phone number so he could call and check their cash on hand.  They said " We don't give our phone number out. My friend crossed the hall and asked for our Postmaster. The Postmaster said my friend would just have to keep checking.  My friend contacted our US Senator.  Within four hours, the Senator's staff called back and said tomorrow one of the clerks would have enough cash to refund the money order.  WHY IS USPS IN TROUBLE? 
Kurt

I bank a huge amount at the P.O, mostly purchases, but cashing some.   They have a very simple system, if you're not into conspiracy speculations.  That system is:  They limit the change that a clerk has at the start of the shift, and continually deposit cash that comes in to minimize the loss in case of theft.  To cash a money order there, you have to work around that.  Also, many of the clerks at the windows are there only at peak times, so often they take in very little over a days time.  Usually they work sorting or other jobs, and are just called forward when a line forms.

I personally know all of the clerks that work the window, as well as the supervisor and postmaster.  That helps.  When I get a large money order, I simply ask them how wealthy they are, and show the m.o.  Often, they will say they just came on, and will tell me which one has been on for some time and taking in cash.  If they have cash, they will gladly cash the m.o..  If they don't have cash, they will verify the M.O. is valid for me, they can do that electronically.  If the M.O. is for over $200, you probably have a 1 in 10 chance of them being able to cover it, and only if a clerk has been working the window for a couple hours or more.

I usually cash them at my bank.  They are treated like any check, they can recover from your account if it's bad.  So, if you have reason to doubt the validity of the M.O., verify it at the P.O. before cashing it at the bank.  Or, the bank can call in the M.O. number and verify it.   

The reality is that the post office issuing money orders is an anamalous piece of their business, left over from when they were a government agency and less of a business.  It is a convenience they offer to their customers, left over from a time when many small communities didn't have a bank and many customers paid their bills this way.  It wasn't intended to be a banking business, in an age when internet sale shipment is 3/4 of their business.

dave