Ebay is a crock of crap!

BrianT said

step four: buyer reports money order as lost or stolen, it takes a few days to process claim, you endorsed the money order and cash it, you are on the hook for the amount the post office gave you

Like it was said before, people will find a way to try and screw you. I had a guy buy a car for cash and 5 out of 18 of his hundred dollar bills were fake! Luckily we were at the bank, and they kept the fake bills, I kept the title and that guy was extremely pissed!!!

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if the money order is reported lost or stolen the post office will not cash it and you keep your item the post office keeps the money order and opens an investigation, you supply them with the details of the on line transaction and the other party is ARRESTED FOR FRAUD
if the owner reports it after it is cashed the post office HAS the ORIGINAL MONEY ORDER WITH THE ORIGINAL PURCHASER'S NAME AND ADDRESS AND YOUR NAME AND ADDRESS IN THE ORIGINAL PURCHASER'S HANDWRITING

once again there is NO POSSIBLE WAY YOU CAN LOSE

even if they send you a BLANK money order and YOU fill it out once you cash it the other party has NO recourse the post office will NOT DO ANYTHING for you once a money order is cashed
if you buy a money order and loose it and someone finds it and cashes it YOU ARE S.O.L. if you FIND a blank money order on the ground and cash it the purchaser is S.O.L.

if the purchaser reports that you ROBBED them and STOLE the money order you have the details of the online transaction proving your side, they get arrested for attempted fraud, and filing a false report, they "go directly to jail do not pass go do not collect $200"

if some one is going to make a false police report they are more likely to report you stole something untraceable like cash rather than paying you with a money order first