Do you accept money orders when you sell online?

They can be forged yes, but then again you can also get fraud via online forms of payment as well. I have always had good luck with either postal money orders or bank issued ones, but I've only taken maybe 6-10 of them over the last several years.

Postal Money Orders are fairly safe. The new ones have a silvery strip embedded. If done through the mail you can get them with Postal fraud if any money orders are fake.

In person, require drivers license. Or require cash.

Postal money orders are safe to accept, but honestly since someone has to use cash to get one, they can just as easily give that cash to you. I've accepted Cashiers checks, Postal money orders, and PayPal for payments before, but won't allow personal checks. I allowed one person to write me a check for $50 since she didn't have enough cash on her, and the check bounced. I did eventually get the $50, but due to the worries I just say no to checks now. For a cashier's check I always wait a couple days for it to clear before releasing merchandise. I've only had those offered through eBay sells, though, and never Craigslist.

I accept Postal Money Orders & money orders from National Banks (Chase, BOA, Wamu, ect...), since you can just go to the Post Office or Local Bank and cash the Money Order from them directly and get cash. I have received fake Postal Money orders and they have been instantly recognized by the Postal employee.