I am in the US and I onced was going to order a domain name from the UK via a US Postal Money Order, I never did actually get the domain name. But I believe you can take it to your bank and they can cash it, but they will charge fees. If the money order is only a few dollars it isn't worth it.
Best using PayPal or Western Union or similar if the client is overseas IMO. Ive registered a few domains for an Australian client and he has always paid via Western Union without any problems.
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I have a customer who wishes to pay using a US postal Money order. Can I cash these at my UK (natwest) bank account ? or can I do it at a Post Office in the UK, or are these not accepted in england ?
definately they will charge very high commission for this. If the amount is too little, not only you are not able to have the money but any other additional commission charges will be applied from your account. I would prefer that your customer pay by international bank cheque written in pounds sterling and put it in HSBC which its commission free however i am not sure for NatWest since i never put any international cheque to them.