Why did tv ads in the 90s/2000s offer so many bonuses for using money orders?

Question

I remember vividly how ads for children’s toys would say “use a money order and we’ll double your order!” I get that it is similar to cash but why did these ads go so out of their way to incentivice the use of money orders?

In: 0

Answer 1

From the vendor’s view, it’s cheaper and surer. They have to pay for credit charges. With checks, they’re taking a risk that the check will bounce. But since you have to pay for the money order before you send it, the vendor has no risk, no hassle in accepting it.