Yes, you can cash a money order at a bank, but not every bank will do it for you
Most banks will cash a money order if you have an account with them. Some banks will also cash a money order for non-customers, though they may charge a fee or require you to open an account. Credit unions typically cash money orders for members only. The key is calling ahead — banks have different policies, and some branches may refuse if the money order is from an unfamiliar issuer or if the amount is very large.
The process is straightforward: bring the money order and a valid ID to the teller, endorse the back of the money order (sign it), and the bank deposits or pays out the funds. Most transactions complete the same day, though some banks may place a hold on the funds for one to three business days depending on the amount and the money order issuer.
Key Takeaways
- Banks that hold your account will almost always cash your money order on the spot, though some may hold the funds for a few days before releasing them.
- Non-customers can sometimes cash money orders at a bank, but policies vary widely — call your local branch first to ask about fees and requirements.
- You must sign the back of the money order before the teller will process it, and bring a government-issued ID.
- If a bank refuses to cash your money order, the issuer (USPS, Western Union, MoneyGram, or your bank) will cash it for free at their own locations.
What happens when you bring a money order to a bank teller
The teller will ask you to endorse the money order by signing the back. Make sure your signature matches the ID you present. If the money order is made out to someone else and you are authorized to cash it, you will need to sign your name and write "for deposit only" or the payee's name, depending on the bank's rules — ask the teller what they need.
The teller then scans or photographs the money order and processes it like a check deposit. If you have an account at that bank, the funds go into your account. If you do not have an account, the bank may offer to deposit it into a new account, cash it on the spot (minus any fee), or refuse entirely. Some banks charge $5 to $15 to cash a money order for non-customers.
The money order is then sent through the bank's clearing system to the issuer for payment. This usually takes one to three business days, though some banks place a hold on the funds during this time. Once the issuer confirms the money order is valid and not a duplicate, the funds are released to your account or paid out in cash.
Holds and delays: when you cannot access the money right away
Banks often place a hold on money order deposits, especially for large amounts or unfamiliar issuers. A hold means the money is in your account, but you cannot withdraw it yet. Holds typically last one to three business days, though they can extend longer if the bank suspects fraud or if the money order is from an unusual source.
If you need the cash immediately, ask the teller whether the bank will cash the money order without a hold. Some banks will do this for customers with good account history or for smaller amounts. If the bank refuses, your only option is to go directly to the issuer — the U.S. Postal Service, Western Union, MoneyGram, or your own bank if they issued it — and cash it there instead.
When a bank will not cash your money order
Banks may refuse to cash a money order if the issuer is unknown or if the money order appears damaged, altered, or suspicious. Some banks have policies against cashing money orders from certain issuers, particularly international or third-party money order services. If the amount is very large — over $5,000 — the bank may require additional verification or refuse to cash it without a hold.
If a bank refuses, you have a free option: go directly to the issuer. The U.S. Postal Service cashes postal money orders at any post office. Western Union and MoneyGram cash their money orders at their agent locations (often grocery stores, pharmacies, or check-cashing businesses). If your own bank issued the money order, return to that bank and ask them to cash it. None of these issuers charge a fee to cash their own money orders.
Money orders from different issuers and bank policies
The issuer of the money order affects how easily a bank will cash it. U.S. Postal Service money orders are widely accepted because they are backed by the federal government. Western Union and MoneyGram money orders are also common and most banks will cash them, though some smaller banks may be more cautious. Bank-issued money orders (from your own bank or another bank) are typically the easiest to cash at any bank.
International money orders, traveler's checks, and third-party money order services are harder to cash at banks. Some banks will not touch them at all. If you have an unusual money order, call the bank first and describe the issuer. If they refuse, skip the bank and go straight to the issuer's location.
Cashing a money order made out to someone else
If a money order is made out to another person and you are authorized to cash it, you will need a power of attorney, guardianship papers, or a signed authorization from the payee. The payee must endorse the back of the money order and write your name, or sign it over to you with their signature. Some banks will not accept third-party endorsements at all, so call ahead.
The safest route is to have the payee cash the money order themselves or deposit it into their own account and transfer the funds to you. If that is not possible, ask the bank what documentation they need before you attempt the transaction.
Fees and costs to know about
If you have a bank account, cashing a money order costs nothing. If you do not have an account, the bank may charge $5 to $15 to cash it for you. Some banks waive this fee if you open an account at the same time. Credit unions typically charge members nothing and charge non-members $10 to $25.
The issuer never charges a fee to cash their own money order. If you go directly to the U.S. Postal Service, Western Union, MoneyGram, or your bank, the service is free.
Frequently Asked Questions
How long does it take for a money order to clear at a bank?
Most money orders clear within one to three business days. The bank sends it to the issuer for verification, and once confirmed, the funds are released. Some banks place a hold during this time, meaning you cannot access the money until the hold lifts. Ask your teller how long the hold will last.
Can I cash a money order at an ATM?
No. ATMs do not accept money orders. You must go to a teller inside the bank or deposit the money order through mobile banking if your bank offers that service. Otherwise, you can deposit it at a branch or cash it directly from the issuer.
What if the money order is damaged or torn?
A slightly damaged money order may still cash, but a badly torn or water-damaged one might not. The issuer's name and amount must be legible. If the bank refuses, contact the issuer directly — they can issue a replacement if you have proof of purchase or the original receipt.
Do I need to be a customer to cash a money order at a bank?
No, but policies vary. Some banks will cash money orders for non-customers for a fee. Others will only cash them for account holders. Call the bank first to ask. If they refuse, the issuer will cash it for free at their own location.
Can I deposit a money order online or through mobile banking?
Many banks allow you to deposit a money order through their mobile app by photographing the front and back. The process is the same as depositing a check. The funds may take one to three business days to clear, and a hold may apply. Check your bank's app to see if this option is available.