 TITLE: Can You Use a Credit Card to Pay for a Money Order? CONTENT: How to Avoid Money Order Scams\n------------------------------\nLegitimate money orders are a secure way to transfer funds. Unfortunately, scam artists sometimes use forged money orders to commit fraud. It can take a week or more after you deposit a fake money order for your bank or credit union to uncover the sham—at which point they'll immediately take the funds out of your account. That could be a problem if you've already spent that money.\nTo protect yourself, be on the alert for these common money order scams:\n*   **Online shopping scam**: An online seller insists you use a money order to pay for merchandise. You send the money order, but they never send you the product. If you're using a money order to make a purchase, it's best to conduct the transaction in person. That way, you can get the product in hand before you give the seller the money order.\n*   **Bogus buyer**: A thief sends you a fake money order to pay for a product you're selling. By the time you realize the money order is fake, you've already shipped the merchandise. If customers ask you to ship products to a private P.O. box, it's often a warning sign of this scam.\n*   **Bogus buyer's remorse**: A scammer buys something from you with a fake money order. You cash the money order and prepare to send them the goods. Before you do, however, they ask to cancel the order and get a refund. They might offer to let you keep part of the payment for your trouble but send them back the rest of the money order. When it's discovered the payment was fraudulent, the check-casher may come after you for fees as well as a return of the fraudulently issued funds.\n*   **Rental reversal**: The scam artist sends a forged money order to pay for a non-refundable security deposit, plus some or all of the charge, for a bed-and-breakfast or vacation rental stay. They quickly cancel the reservation and request a refund. You deposit the money order, keep the security deposit and send them the rest of the money before it's discovered the money order is a fraud.\n*   **Overpayment ploy**: Scammers may send you a money order for more than the price of the merchandise you're selling. They then claim it was an error and ask for the overage to be returned.\n*   **Deposit assistance**: A stranger claims they don't have a bank account, so they need you to deposit a money order for them and then send them the funds.\nTo prevent fraud, the FTC recommends you never send a money order to someone you don't know, people who say they only accept money orders or people who ask you to keep the transaction a secret. Here are a few other steps to help you avoid money order scams:\n*   **Verify funds.** Before you cash a money order, contact the issuer listed on the back of the money order to confirm that it's genuine.\n*   **Look for signs of forgery.** These can be hard for a novice to spot, but you can take the money order to a location of the issuer and ask them to inspect it.\n*   **Check for tampering.** Does the amount look like it's been erased or added to? If so, it could be a scam.\n*   **Don't use funds from a money order right away.** Wait a week or two after depositing a money order to use the money or issue any refund to the sender.\n*   **Be wary of pressure tactics.** Scammers typically rush you to deposit the money order or send them a refund right away. They might play on your sympathy by claiming they need the funds for an operation. Some may use scare tactics such as threatening to sue you or ruin your online reputation. When it comes to money orders, be suspicious of anyone who insists you act immediately. END