[1][2] The term is most commonly used in North America in the context of real estate transactions.
When making certain types of transactions, such as purchasing real property, motor vehicles and other items that require title, the seller usually requires a guarantee that the payment method used will satisfy the obligations.
To do this, the seller will require certified funds, usually in the form of: Specifically, personal checks are not allowed, as the account may not have sufficient funds, and credit cards are not allowed, as the transaction may later be disputed or reversed.
These steps can include various unique stamps, inks and hole punchers, as well as the assistance of a machine such as a protectograph.
Fraud is specifically not reimbursed by many issuers of money orders (e.g. Western Union), and so has to go through local police.