Yes, most banks will cash money orders, but the process and fees vary by bank and the money order issuer
Your bank can cash a money order if you have an account there, and most will do it for free or a small fee. The catch is that not every bank accepts every money order. Banks are most likely to cash money orders they issued themselves. If the money order came from a different issuer—a check-cashing service, grocery store, or post office—your bank may refuse it, charge you a fee, or require you to deposit it instead of cashing it on the spot.
The speed and ease of cashing depends on whether you're a customer, whether the money order is from a major issuer, and how busy the branch is. A money order issued by your own bank can usually be cashed in minutes. A money order from the U.S. Postal Service or a major money order company like MoneyGram or Western Union will likely be accepted by most banks, though some may ask you to deposit it rather than hand you cash. Smaller or regional money order issuers may be rejected outright.
Key Takeaways
- Banks almost always cash money orders they issued themselves, usually for free if you have an account.
- Money orders from the U.S. Postal Service, MoneyGram, and Western Union are accepted by most banks, though some may require deposit instead of immediate cash.
- You will need to show a valid ID and endorse the back of the money order by signing it.
- If your bank refuses to cash it, you can deposit it to your account, take it to the issuer's location, or use a check-cashing service.
- Some banks charge a fee to cash money orders from other issuers, typically $5 to $10.
What your bank needs to cash a money order
Bring the money order itself, a valid government-issued ID, and your bank account number or debit card. The money order must be made payable to you or to you and another person. If it's made payable to someone else, you cannot cash it—the payee must be present or have signed it over to you in writing on the back.
Before you go to the branch, sign the back of the money order in the endorsement area. Write your account number below your signature if the teller asks. Some banks will ask you to sign it at the counter instead. If the money order is damaged, torn, or the amount is unclear, the bank may refuse to cash it or ask you to contact the issuer first.
Money orders your bank is most likely to cash
Banks have the easiest time with money orders they issued themselves. If you bought the money order from your bank's branch or through their online service, they will almost certainly cash it for free. No verification needed beyond your ID and signature.
U.S. Postal Service money orders are widely accepted because they are backed by the federal government and are considered very low-risk. Most banks will cash them without hesitation, though some may charge a small fee if you are not a customer. MoneyGram and Western Union money orders are also commonly accepted, though acceptance varies more by bank and location. Call your branch before you go if the money order is from one of these issuers and you want to know whether they will cash it or require a deposit.
Grocery store money orders (from Walmart, Kroger, Safeway, etc.) are hit or miss. Some banks will cash them; others will only deposit them. Regional or smaller money order issuers are the least likely to be accepted by banks outside their service area.
When your bank will ask you to deposit instead of cashing
Some banks have a policy of depositing money orders rather than cashing them, especially if the issuer is unfamiliar or if you are not an account holder. This protects the bank from fraud and from holding cash for a money order that later bounces. If the bank asks you to deposit, the money will go into your account and be available within one to three business days, depending on the bank's policy.
If you need cash immediately and the bank will only deposit, ask whether they will make an exception for a money order from a major issuer like USPS or MoneyGram. Some branches have discretion. If they refuse, your other option is to take the money order to the issuer's location directly—the post office for USPS money orders, or a MoneyGram or Western Union agent location for those brands.
Fees and what to expect at the counter
Most banks charge no fee to cash a money order if you are an account holder and the money order is from a major issuer. If you are not a customer, or if the money order is from a smaller issuer, expect a fee of $5 to $10. Some banks charge the same fee whether you cash or deposit.
The process at the counter is straightforward: hand over the money order and your ID, sign the back if you haven't already, and the teller will verify the amount and issuer. If everything checks out, you will receive cash. The whole transaction usually takes five to ten minutes. If the teller needs to verify the money order with the issuer—which happens rarely—it may take longer or you may be asked to come back.
What to do if your bank refuses to cash it
If your bank will not cash the money order, you have three options: deposit it to your account, take it to the issuer, or use a check-cashing service. Depositing is the simplest if you do not need cash right away. The money will be available in your account within a few business days.
Taking the money order to the issuer is the fastest way to get cash if your bank refuses. The U.S. Postal Service will cash USPS money orders at any post office. MoneyGram and Western Union have agent locations at grocery stores, pharmacies, and check-cashing services. You will need your ID and the original money order. There is usually no fee if you are cashing at the issuer's location.
Check-cashing services will cash almost any money order, but they charge a fee—usually 1% to 3% of the amount. For a $500 money order, that could be $5 to $15. This is your most expensive option but also the fastest if you need cash and cannot reach the issuer or your bank.
How to avoid problems when cashing a money order
Buy money orders from issuers your bank recognizes. USPS, MoneyGram, and Western Union are safe bets. If you are sending a money order to someone else, tell them which issuer it is from so they know where to cash it.
Keep the receipt until the money order is cashed. If there is a problem—the money order is lost, stolen, or the amount is wrong—you will need the receipt and the money order number to file a claim with the issuer. Do not sign the back of the money order until you are at the bank or ready to cash it. Once it is signed, anyone can cash it.
If the money order is for a large amount, call your bank ahead of time to let them know you are coming. Some branches have cash limits and may need to order extra cash from their vault. This is especially true for amounts over $1,000.
Frequently Asked Questions
Can I cash a money order at a bank where I don't have an account?
Most banks will cash money orders from major issuers like USPS or MoneyGram even if you are not a customer, but they may charge a fee of $5 to $10. Some banks refuse to cash for non-customers and will only deposit. Call ahead to ask.
What if the money order is torn or damaged?
A slightly damaged money order may still be cashed if the amount and issuer information are clear. Heavily damaged or illegible money orders will be refused. Contact the issuer with your receipt to request a replacement.
How long does it take to cash a money order at the bank?
If the money order is from your bank or a major issuer, cashing takes five to ten minutes. If the teller needs to verify the money order with the issuer, it may take longer or you may be asked to return later.
Can someone else cash my money order if it's made out to me?
No. The person whose name is on the money order must be present with a valid ID to cash it. You can sign it over to someone else by writing "Pay to the order of [their name]" on the back and signing it, but policies on accepting signed-over money orders vary by bank.
What's the difference between cashing and depositing a money order?
Cashing means you receive the full amount in cash immediately. Depositing means the money goes into your bank account and is available within one to three business days. Depositing is safer because it creates a record, but cashing is faster if you need cash now.