How to Handle Cash and Check Remittance by Mail More Securely?

Image Source: pexels

Mailing cash is an extremely high-risk method, and we strongly advise against doing so. The safest way is to use traceable electronic remittance services provided by regulated financial institutions. Financial losses caused by mail theft are astonishing, and you need to understand the risks involved.

• According to the Better Business Bureau report, check fraud related to mail theft has caused losses of up to 815 million USD.
• In 2023, in the Americas region alone, the total losses from check fraud approached 21 billion USD.

Understanding how to safely handle remittances is crucial for protecting your funds.

Key Points

• Mailing cash carries high risks, and you can almost never recover the losses. You should avoid mailing cash.
• When mailing checks, bank drafts and money orders are safer than personal checks. You should use traceable services such as registered mail.
• Bank wire transfers are the safest method for large transactions. Online remittance platforms are suitable for small international remittances.
• If there is an issue with the remittance, you should immediately contact the bank to stop payment or track the remittance via the transaction number.
• When choosing a remittance method, you should consider the amount, urgency, and risk tolerance.

The Huge Risks of Mailing Cash

Image Source: unsplash

Although mailing cash may seem convenient, you are actually placing your funds at extremely high risk. Once the mail is lost or stolen during transit, you have almost no effective recourse.

Unrecoverable Fund Losses

Cash is anonymous, and once lost, it is like sinking into the sea. You cannot recover it like canceling a check or tracking an electronic remittance. Postal services in many countries do not provide compensation for cash lost in mail, or the compensation amount is extremely low.

For example, some postal institutions clearly state:

• For valuable items (including money) lost in mail, compensation is generally not provided.
• Compensation cannot be obtained unless you use specific insured mailing services and strictly comply with their terms.

Even if you purchase insurance for mail containing cash, the compensation limit may be very low. For example, in the United States, in certain cases, the insurance compensation limit for mailing cash is only 15.00 USD, which is a drop in the bucket for most remittance needs.

Lack of Effective Delivery Proof

You might think that using registered mail or certified mail can provide delivery proof, thereby protecting your rights. However, legally, the situation is far more complex than you imagine. According to U.S. federal regulations, the receipt for registered mail can serve as preliminary evidence of document delivery, but this regulation does not apply to payments. This means that even if you hold the receipt, you cannot easily prove in law that the recipient actually received the cash. Without the other party’s handwritten signature confirmation, it is difficult for you to prove that you have fulfilled your payment obligation.

Potential Legal and Customs Risks

When you need to mail cash internationally, you will face additional legal and customs risks. Many countries have strict regulations on transporting cash through mail, and ignoring these regulations can lead to serious consequences.

For example, if you are mailing cash from the United States, you need to comply with the following regulations:

1. Declare the Amount: When the total amount mailed exceeds 10,000 USD, you must declare it to the government.
2. Declaration Form: You need to fill out a specific Financial Crimes Enforcement Network form (FinCEN Form 105).
3. Declaration Time: You must submit the form on or before the day of mailing.

These rules apply not only to cash but also to traveler’s checks, money orders, and other monetary instruments. If you fail to comply with these declaration regulations, not only may the funds be confiscated, but you may also face high fines or even civil and criminal penalties such as imprisonment. Considering these huge risks, choosing safer electronic remittances or bank services is the wise choice.

Safe Handling Guide for Checks and Money Orders

If you must pay by mail, choosing checks or money orders is far safer than sending cash. But this does not mean there are no risks. Proper safe handling methods can greatly reduce the possibility of your funds being stolen or misused.

Choose the Right Type of Instrument

Not all instruments have the same level of security. Understanding the differences between personal checks, bank drafts, and money orders can help you make the most informed choice based on your needs.

• Personal Check: This is the least secure option. It is directly linked to your personal bank account and contains sensitive information such as your name, address, and account number. If there are insufficient funds in your account, the check will bounce, leading to penalties for both you and the recipient.
• Money Order: Money orders are safer than personal checks because you have already paid the full amount at the time of purchase. It does not contain your personal bank account information, providing better privacy protection. However, you need to note that if a money order without a specified payee is lost, anyone who picks it up may cash it. Therefore, money orders are more suitable for small payments under 1,000 USD.
• Cashier’s Check: This is one of the safest options. Cashier’s checks are issued and guaranteed by the bank. At the time of issuance, the bank directly prints the payee information, ensuring that only the specified person can cash it. This makes it harder to tamper with or fraudulently claim than money orders and personal checks.

Key Difference Both cashier’s checks and money orders have prepaid funds, and the recipient can obtain the guarantee immediately, avoiding the risk of bouncing that personal checks may have.

To help you understand them more clearly, you can refer to the comparison below:

In terms of fees, higher security usually means higher costs. Cashier’s check fees are typically 10 USD or higher, while postal money order fees are generally between 1 USD and 5 USD.

Standardize Filling in Payee Information

A check that is not filled out properly is a favorite of fraudsters. They can erase the information you wrote through chemical means called “Check Washing” and then fill in a new payee and amount. To prevent this, you must fill out the check properly.

• Write the full payee name: Never leave the payee line blank; be sure to fill in the other party’s full legal name or full company name
• Start filling from the far left: Whether filling in the payee or the amount, start from the leftmost position of each line, leaving no space for others to add content.
• Strike through extra space: After filling in, if there is blank space at the end of the payee name or the amount digits, draw a long line with a pen to the end of the line.
• Use “crossed check”: To further enhance security, you can draw two parallel diagonal lines in the upper left corner of the check. This is called a “crossed check,” which mandates that the check can only be deposited into the payee’s bank account and cannot be directly cashed. This is a simple and effective safe handling technique.

Use Traceable Mailing Services

How to mail checks and where to mail them are equally important. To ensure mail security, you should take the following measures:

Important Tip: Never use street-side blue mailboxes to mail checks. These mailboxes are high-risk areas for mail theft. You should personally deliver the mail to the post office counter or a secure drop box.

Choosing the right mailing service is key to safe handling. The United States Postal Service (USPS) offers multiple services with tracking features, and you can choose based on security needs and budget.

• Certified Mail: Provides proof that the mail has been sent and delivered. It is suitable for mailing important but low-value documents.
• Registered Mail: This is the safest option. Mail is locked in secure postal bags throughout transit, with records for every handover. It is ideal for mailing high-value checks or critical documents.

Retain All Relevant Proofs

After mailing a check or money order, your work is not done. Properly keeping all relevant proofs is crucial; they are your only evidence of completing the payment.

You need to retain the following documents:

• Receipt for money order or cashier’s check: This is your purchase proof. The tracking number on the receipt allows you to check if the money order has been cashed. If the money order is unfortunately lost or stolen, you need this receipt to apply for stop payment or replacement.
• Mailing service receipt and tracking number: This is proof of your mailed item and can be used to track the delivery status of the mail.
• Copy or stub of the check: If you are using a personal check, keep the check stub or take a photo of the front of the check with your phone.

So, how long should these records be kept?

• Tax-related: For payment proofs that may be used for tax declarations (such as charitable donations, business expenses, etc.), they usually need to be kept for 3 years. If you underreport a large amount of income, they need to be kept for 6 years.
• Non-tax-related: For daily bill payments, keeping cashed check records or receipts for 1 year is sufficient.

Properly keeping these proofs can provide you with strong protection in case of disputes.

Safer Modern Remittance Solutions

Image Source: unsplash

Mailing checks is safer than cash but still risky and inefficient. Fortunately, modern financial technology provides you with more secure and efficient options. Abandon mailing; these modern remittance solutions can better protect your funds.

To translate the “traceable, compliant, and efficient” approach into practice, you may opt for a regulated platform to execute cross-border transfers and currency exchange. For instance, BiyaPay—positioned as a multi-asset wallet for payments, investing, and asset management—offers an integrated workflow: before sending, use its free Rate Converter & Comparison to assess live rates and total costs; when ready, initiate a transfer via the Remittance page with required compliance details and monitor progress in-app.

BiyaPay emphasizes transparency and risk controls (including U.S. MSB and New Zealand FSP registrations) to enhance auditability and reliability across borders. It supports flexible fiat–digital currency conversion, clear rate display, low fees (as little as 0.5%), same-day send with same-day arrival where supported, and coverage across most countries and regions.

New users can open an account via the Sign-up link. For those who also manage investments alongside payments, BiyaPay’s unified tools help reduce context switching without altering the security principles outlined in this article.

Bank Wire Transfer: Preferred for Large Transactions

When you need to conduct large or high-risk transactions, bank wire transfer is the undisputed best choice. Its security comes from strict multi-layer verification protocols within the bank system.

• Verification Process: The bank verifies the sender’s identity, then communicates with the receiving bank through a standardized secure information system, and finally verifies the recipient’s information again. This process creates a clear, identity-verified payment trail.
• Government Regulation: All U.S. banks must comply with strict security protocols. Under the Bank Secrecy Act, transactions over 10,000 USD are reported to the tax authorities (IRS). Banks also screen transactions against the Office of Foreign Assets Control (OFAC) sanctions list to prevent illegal fund flows.
• High Limits and Irrevocability: Unlike card payments with daily limits, wire transfers have almost no amount limit, making them ideal for large payments such as business acquisitions and real estate transactions. Once completed, wire transfers are usually irrevocable, providing the recipient with extremely high fund assurance.

Of course, high security comes with corresponding fees. In the United States, bank wire transfer fees are usually fixed, making them more cost-effective for large transfers.

Fee Reference

• Domestic Wire Transfer: Sending fees are usually between 25 USD and 35 USD.
• International Wire Transfer: Sending fees are higher, usually between 35 USD and 50 USD.

For international wire transfers, regulatory bodies in different countries and regions (such as the Financial Action Task Force FATF) work together to ensure transaction compliance, further enhancing security.

Online Remittance Platforms: Efficient and Economical

For daily small international remittances, online platforms like Wise and PayPal offer faster and more economical options than traditional banks. However, you need to carefully compare their fee structures.

• Wise: Known for its transparent fees and exchange rates close to the mid-market rate. It usually charges only a small fixed service fee with no hidden exchange rate markups. Most transfers arrive within 24 hours, and many can even be completed in seconds.
• PayPal: If the recipient also has a PayPal account, the transfer is almost instant. But its main cost lies in the exchange rate markup. Although the service fee may seem low, the money you lose on the exchange rate may far exceed the service fee itself.

Let’s take a 1,000 USD international remittance as an example to see their total cost differences:

In terms of security, these platforms also invest significant resources. For example, PayPal uses advanced machine learning models and vast global transaction data to identify and prevent fraud. It encrypts and stores all sensitive information and provides fraud protection tools, allowing merchants to customize filtering rules based on their own risk tolerance. Nevertheless, you still need to be vigilant against phishing, fake invoices, and other scam methods.

Security Tip: Never pay to strangers and be wary of offers that are “too good to be true.” A reliable platform combined with your prudent judgment forms a complete security defense.

Bank-Level Service: Check Lockbox

If you are a business owner or need to handle a large number of check receipts monthly, the “check lockbox” (Lockbox Service) provided by banks is a professional advanced solution. It can help you automate the receipt process and significantly improve the efficiency of fund safe handling.

It works simply:

1. You require customers to mail checks to a dedicated postal box managed by the bank (i.e., the “lockbox”).
2. Bank staff collect mail from the lockbox multiple times a day.
3. The bank uses optical character recognition (OCR) technology to scan checks and remittance slips, process checks into digital images, and deposit them directly into your business account.
4. The bank provides you with electronic reports containing all deposit details, which can be directly integrated into your accounting software.

Using check lockbox services, your employees do not need to handle physical checks, greatly reducing the risk of internal fraud. At the same time, funds arrive faster.

The cost structure of this service is relatively complex, usually including:

• Base Fees: One-time setup fee and monthly maintenance fee.
• Per-Item Billing: Charged per check processed, per envelope, or per remittance document.
• Additional Fees: Data transmission fees, special handling fees (such as handling handwritten checks), etc.

Transaction volume, check complexity, and your relationship with the bank will affect the final pricing. For high-frequency receipt businesses, the time saved and enhanced security of this service often fully offset its costs.

Traditional Alternative: Money Orders

Although we have discussed more modern solutions, money orders as a traditional payment tool still have value in certain scenarios. They are safer than personal checks because the funds are prepaid, but their processing speed is usually the slowest among all international remittance methods.

You need to understand the amount limits for different money orders. For example, money orders provided by the United States Postal Service (USPS) have the following limits:

• Domestic Money Orders: Maximum 1,000 USD per order.
• International Money Orders: Maximum 700 USD per order (lower limits in some countries like El Salvador and Guyana, at 500 USD).

If a money order is unfortunately lost or stolen, you can apply for tracking or cancellation, but this takes time and fees. You must keep the purchase receipt because it has the tracking number.

Cost of Tracking Lost Money Orders Applying to track or replace a lost money order is not free. Different institutions have varying fee standards, and processing time may take up to 30 to 60 days.

• United States Postal Service (USPS): Fee is about 6.95 USD.
• Western Union: Fee is about 15 USD.
• Bank or Credit Union: Fees are usually between 15 USD and 30 USD.

Considering its speed limitations and the cumbersome process of handling lost instruments, money orders are more suitable for scenarios where electronic payments cannot be used and there are no high timeliness requirements.

What to Do If There Is a Problem with the Remittance?

Even if you take all preventive measures, accidents may still occur. When your remittance has a problem, staying calm and acting quickly is key. Here are three steps you should take immediately to maximize the protection of your funds.

Immediately Contact the Bank to Apply for Stop Payment

If you mailed a check and suspect it has been lost or stolen, the first step is to contact your bank to apply for stop payment.

For personal checks, the stop payment operation is relatively straightforward. You need to pay the bank a service fee, and the stop payment request is usually valid for six months. But for cashier’s checks, the situation is much more complicated. Banks generally do not easily stop payment on cashier’s checks because this is the bank’s own direct liability.

Strict Conditions for Stopping Payment on Cashier’s Checks According to the Uniform Commercial Code (UCC), you usually need to wait 90 days after the check issuance date to make a stop payment request. In addition, you must submit an affidavit to the bank proving that the check is indeed:

• Destroyed;
• Missing;
• Illegally held.

Track the Remittance via Transaction Number

If you are using electronic remittance or an online platform, the transaction number is your most important tool for tracking where the funds have gone.

• Bank Wire Transfer: When you initiate a wire transfer, the bank provides a unique reference number. For domestic wire transfers in the U.S., this is usually a 16 to 20-digit “Federal Reference Number” (Fed Number). For international wire transfers, you get a "Unique End-to-End Transaction Reference" (UETR), which you can track through the SWIFT system.
• Online Platforms: Platforms like Wise provide detailed trackers. You can see every step of the funds’ status, including estimated arrival time and any reasons that may cause delays (such as holidays or additional security checks).

Contact the Logistics Company to Confirm Status

If you sent the check or money order by mail, you need to immediately contact the logistics company. Use the tracking number in your hand to check the latest status of the mail on the logistics company’s official website.

If the mail is confirmed lost, you need to submit a claim as soon as possible. You need to prepare all proof documents, such as:

• Mailing service receipt
• Purchase proof of money order or cashier’s check
• Proof of item value

Important Tip: Insurance compensation for ordinary mail is very limited. For example, for negotiable instruments (such as checks) or cash, USPS’s maximum compensation limit is only 15 USD. Only by using advanced services like Registered Mail can you get higher insurance coverage.

Submitting a claim has strict time limits. For example, for domestic parcels in the U.S., you must submit a claim within 60 days after shipment. Therefore, once a problem is discovered, do not delay.

Please remember that mailing cash should be absolutely avoided. Even mailing checks carries risks. The Federal Trade Commission reports that in 2019 alone, consumers lost over 28 million USD due to fake check scams. Therefore, proper safe handling is crucial: be sure to use traceable services and deliver from the post office counter. For most situations, bank wire transfers and reputable online platforms are safer and more efficient choices. Please choose the most suitable solution based on your remittance amount, urgency, and risk tolerance.

FAQ

What is the safest way to remit money?

We strongly recommend using bank wire transfers or reputable online remittance platforms. These methods provide electronic tracking functions and are protected by financial regulations. You should always avoid mailing cash, as it is the highest-risk method.

If I must mail a check, what should I do?

If you must mail a check, please follow these key steps to reduce risks:

• Choose safer cashier’s checks or money orders.
• Use traceable mailing services, such as registered mail.
• Personally deliver the mail to the post office counter; do not use street-side mailboxes.

Are money orders safer than personal checks?

Yes. Money orders are paid at the time of purchase, so they will not bounce. They also do not disclose your personal bank account information, providing better protection for your financial privacy. Therefore, for small payments, it is a safer choice.

Are online remittance platforms always cheaper than banks?

Not necessarily. For small international remittances, online platforms are usually cheaper due to lower service fees and better exchange rates. But for large domestic transactions, bank fixed-fee wire transfers may be more cost-effective. You should compare the total costs based on specific situations.