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Which postal services? The USPS doesn't strongly discourage it.

They absolutely do and may refuse to mail it in some cases. It increases the risk of theft astronomically, that's why money orders exist.

Can you provide a source? I can provide two indicating they do not.

You should report to the postmaster general if you are refused service; they would be interested in hearing about this.

Postal services deny liability. If you send cash and it is stolen you can not sue or get redress from the postal system

You can insure up to $50k when sending cash through USPS.

Registered mail is insured up to $50,000

If you tell the USPS that you are sending cash, they will not accept it for delivery.

I found this out the hard way trying to overnight about $500 cash to a family member.

They all say that but it works fine for smaller dollar amounts (say under $100).