Identification

• A bank check is a signed document generally treated like cash because the funds indicated on the document are taken from the check writer's checking account with a financial institution. A money order is also a signed document used like cash. However, this form of payment is considered guaranteed because the funds for the document were exchanged at the time of the money order purchase.
  
  

Process

• Bank checks undergo a certain process before funds are released. The check goes from the financial institution of the person or business to which it was written to the account holder's institution; if the money is not available, it is sent back to the original institution as a bounced check. In comparison, a money order is an instant exchange of funds because the money for the document was exchanged and released at the time of purchase.
  
  

Considerations

• It is against the law to write bad checks and your local state's attorney's office can pursue legal action against you that, in some instances, can include jail time if you are a repeat offender. Money orders come in handy for those that have a hard time maintaining a checking account.