If you restrict the money order to a USPS money order and cash it at the post office before shipping the item, there is no risk to you. The buyer will not be able to open an eBay claim or a PayPal claim... the money order buyer has no buyer protection.
The eBay August 2008 Updates FAQ page addresses this type of situation... here's the text and link...
What should I do if a buyer demands to pay with checks or money orders?
We know that some buyers still want to pay with checks and money orders, even after this policy change went into effect. When this happens, explain to your buyers the benefits that come with electronic payments:
- More secure payments
- Faster delivery of their purchases
- More protection in case anything goes wrong.
Some buyers may be anxious about online payments or may not have a bank account. In these cases, suggest that they try using a prepaid debit card. More information on prepaid debit cards can be found online through card providers such as Visa, MasterCard, and Green Dot.
What should I do if I have long-standing, repeat customers who insist on paying with checks or money orders, even after I explain the benefits of electronic payments and offer suggestions?
We know this may happen occasionally. A seller can accept check and money order payment from a buyer if (and only if) the buyer requests it. We will not take action against a seller who is trying to accommodate their buyer, complete a sale and be in compliance with the policy. Sellers cannot in any way solicit check or money order payment from a buyer. This is considered abuse of the payments policy. Remember also, you can refuse to accept these payment methods. If the buyer doesn't pay, you can file an unpaid item (UPI) complaint. Buyers who insist on paying with these prohibited payment methods in a UPI claim will lose the claim and will not be allowed to leave negative feedback.
http://pages.ebay.com/sell/August2008Update/OtherFAQ/#3
