Yes, you can cash a money order at your bank, but not all banks handle them the same way
Most banks will cash a money order if you have an account with them. The teller will verify that the money order is legitimate, check your ID, and deposit or cash it on the spot. The time it takes depends on the bank and the money order issuer — some clear in minutes, others take one to three business days. If you don't have an account at the bank, you can still cash a money order there, but many banks charge a fee (typically $5 to $15) or require you to open an account.
The key is knowing what the bank needs from you before you walk in. You'll need the money order itself, a valid ID, and your account number if you're depositing it. If the money order is made out to someone else, the payee must endorse it (sign the back) and be present with their ID, or they must sign it over to you in writing.
Key Takeaways
- Banks that hold your account will almost always cash money orders for free and often deposit them immediately.
- Non-customers can cash money orders at most banks but will pay a fee, usually between $5 and $15.
- You need a valid ID and the money order itself; if it's made out to someone else, that person must sign the back and show ID.
- Money orders from major issuers like Western Union or MoneyGram clear faster than those from smaller or regional issuers.
- If a money order is damaged, altered, or missing information, the bank may refuse to cash it or hold it for verification.
What banks need from you to cash a money order
Bring your valid ID — a driver's license, passport, or state ID card. The bank needs to confirm you are who you say you are, especially if you're not a customer. If you have an account, the teller will match your ID to their records. If you don't, they'll record your ID information before cashing the money order.
Bring the money order itself. Check that it has all the required information: the amount, the payee name (who it's made out to), the issuer's name, and a serial number. If any of these are missing or illegible, the bank may refuse to cash it. If the money order is torn, water-damaged, or has writing over the amount, tell the teller before they process it — some banks will still cash it, others will send it back to the issuer for verification.
If the money order is made out to you, you're done. If it's made out to someone else, that person must endorse it by signing the back. They must also be present with their own ID. If they can't be there, they can sign the back and write "Pay to the order of [your name]" above their signature, then you sign below that. This is called a third-party endorsement, and many banks refuse to accept them because of fraud risk — call ahead to ask if yours does.
How long it takes to cash or deposit a money order
If you're depositing a money order into your account, the bank may credit it immediately or place a hold. Most banks credit money orders from major issuers (Western Union, MoneyGram, USPS) within one business day. Money orders from smaller or regional issuers may take two to three business days. The bank will tell you the hold period when you deposit it.
If you're cashing a money order and walking out with cash, the teller will verify the money order and hand you the cash on the spot — usually within five to ten minutes. The exception is if the money order is damaged or the amount is very large; the bank may place a hold while they contact the issuer to confirm it's real.
Money orders from USPS, Western Union, and MoneyGram are the fastest because banks process them regularly. Money orders from smaller issuers, local credit unions, or businesses may take longer because the bank has to contact the issuer directly to confirm the funds.
Cashing a money order without a bank account
You can cash a money order at a bank where you don't have an account, but expect to pay a fee. Most banks charge $5 to $15 to cash a money order for a non-customer. Some banks have a minimum fee plus a percentage of the amount. A few banks refuse to cash money orders for non-customers altogether, so call ahead.
Your other options are faster and sometimes cheaper. A check-cashing store will cash a money order for a fee, usually 1 to 3 percent of the amount. The store where the money order was issued — Western Union, MoneyGram, or USPS — will also cash it, often for free or a small fee. If the money order is from a specific business or organization, you can try cashing it there.
If you plan to cash money orders regularly, opening a basic checking account at a bank costs nothing and saves you fees. Many banks offer no-fee accounts with no minimum balance, especially if you set up direct deposit.
What happens if the money order is lost, stolen, or damaged
If a money order is damaged but still readable, most banks will cash it. If it's torn in half, water-damaged, or has the amount written over, tell the teller. They may cash it anyway, or they may send it to the issuer for verification — this adds one to two weeks to the process.
If a money order is lost or stolen before you cash it, contact the issuer immediately. Western Union, MoneyGram, and USPS all have processes to cancel a money order and issue a replacement. You'll need the receipt or the serial number. The issuer will verify that the money order hasn't been cashed, then issue a new one. This usually takes five to ten business days.
If someone else cashes a stolen money order, the issuer will refund the original purchaser, not you. This is why it's important to cash money orders as soon as you receive them and to keep them in a safe place.
Money orders from different issuers and how banks treat them
The issuer matters because banks process different money orders at different speeds. USPS money orders, Western Union, and MoneyGram are the most common and clear the fastest — usually within one business day. Banks process these regularly and have direct relationships with the issuers.
Money orders from credit unions, local banks, or businesses are less common. Banks may take longer to verify them because they have to contact the issuer directly. Some banks charge a higher fee to cash these, or refuse to cash them at all.
Money orders from online services like Walmart2Walmart or PayPal are newer and some banks are still learning how to process them. Call your bank before you try to cash one — they may accept it, or they may ask you to deposit it instead of cashing it.
Why a bank might refuse to cash your money order
A bank can refuse to cash a money order if it's altered, if the amount is illegible, if the payee name doesn't match your ID, or if the money order is more than a year old. Some money orders expire after one year; check the fine print on the back.
If the money order is made out to a business and you're trying to cash it personally, the bank will refuse. The payee name must match the person presenting it, or that person must have a signed endorsement from the payee.
If the bank suspects fraud — for example, if you're trying to cash a very large money order and you're not a customer — they may place a hold and contact the issuer. This is not a refusal, but it will delay the cash. If the issuer confirms the money order is real, the bank will cash it.
Frequently Asked Questions
Can I cash a money order at a bank I don't have an account with?
Yes, but most banks charge a fee of $5 to $15 for non-customers. Some banks refuse to cash money orders for non-customers. Call ahead to ask. Check-cashing stores and the issuer (Western Union, MoneyGram, USPS) are often cheaper options.
What if the money order is made out to someone else?
The payee must sign the back and show their ID. If they can't be there, they can sign the back and write "Pay to the order of [your name]," then you sign below. Many banks refuse third-party endorsements because of fraud risk — call ahead to ask.
How long does it take for a money order to clear?
If you're depositing it, most banks credit money orders from major issuers (Western Union, MoneyGram, USPS) within one business day. Smaller issuers may take two to three days. If you're cashing it for cash, you'll get it on the spot, usually within five to ten minutes.
What should I do if my money order is damaged?
Tell the teller before they process it. If it's still readable, most banks will cash it. If it's severely damaged, the bank may send it to the issuer for verification, which adds one to two weeks. If it's lost or stolen, contact the issuer immediately to cancel it and request a replacement.
Can I cash a money order online?
No. You must cash or deposit a money order in person at a bank, check-cashing store, or the issuer's location. You can deposit it through a bank's mobile app if the app supports mobile deposit, but you still need the physical money order.