Yes, you can cash money orders at most banks, but not all branches handle them the same way

Banks will cash money orders, but the process depends on whether you have an account there and what type of money order it is. If you have a checking or savings account at the bank, most tellers will cash it on the spot during business hours. If you don't have an account, many banks will still cash it, but some charge a fee—typically $5 to $15—and a few refuse to cash money orders from non-customers entirely. The fastest route is to go to the bank that issued the money order (usually printed on the front), since they have the most incentive to process it quickly.

The money order must be signed on the back by the person it's made out to, and you'll need to show a government-issued ID. If the money order is made out to someone else and you're trying to cash it, the original payee must endorse it to you in writing on the back, and you'll both need to be present with ID. Some banks will not cash third-party money orders at all, so call ahead if that's your situation.

Key Takeaways

  • Banks that issued the money order cash them fastest and usually without charging a fee to account holders.
  • Non-account holders can often cash money orders at banks, but expect a fee of $5 to $15, and some banks refuse to do it.
  • You must sign the back of the money order and show a government-issued ID; the teller will verify the signature matches.
  • If the money order is made out to someone else, that person must endorse it to you in writing on the back, and both of you need to be present with ID.
  • Third-party money orders (endorsed to you by someone else) are often refused by banks; call ahead to confirm your bank will accept it.

Cashing at the issuing bank versus any other bank

The bank or credit union that issued the money order will always cash it, and they do it without charging a fee to their own customers. You can find the issuer's name printed on the front of the money order, usually in the upper left corner or along the top edge. If you have an account there, walk in during business hours with your ID and the signed money order, and you'll typically have cash in hand within minutes.

If you go to a different bank—one that didn't issue the money order—the process is slower and more expensive. That bank has to verify the money order is legitimate and that funds are actually available, which takes time. They may charge you a fee for doing this verification work, and some banks simply decline to cash money orders from other issuers. If you're a customer of that bank, the fee is often waived or reduced. If you're not, expect to pay the full amount.

What happens if you don't have an account at the bank

Non-customers can cash money orders at many banks, but you're not may provide service. Large national banks like Bank of America, Wells Fargo, and Chase typically cash money orders for non-customers, though they charge a fee. Smaller regional or community banks vary widely—some welcome the business, others refuse entirely. Credit unions almost always require you to be a member to cash anything, including money orders.

The fee for non-customers ranges from $5 to $15 depending on the bank and the money order amount. Some banks waive the fee if the money order is large enough or if you open an account on the spot. Before you go to the bank, call ahead and ask: "Do you cash money orders for non-customers, and what's the fee?" This saves you a trip if they say no.

How to sign and present the money order correctly

The money order has two signature lines: one for the sender (already filled in) and one for the payee (you). You must sign the back of the money order in the payee signature line. The teller will compare your signature to your ID to make sure they match. If your signature on the money order looks very different from your ID signature, the teller may refuse to cash it or ask you to sign it again.

Bring a government-issued ID—a driver's license, passport, state ID card, or military ID all work. The teller needs to see that the name on the money order matches the name on your ID. If the money order is made out to a nickname or shortened version of your name (like "Bob" instead of "Robert"), and your ID says "Robert," the teller may ask for additional proof that you're the same person, such as a utility bill or lease with both names on it.

Cashing a money order made out to someone else

If the money order is made out to another person and they want you to cash it, that person must endorse it to you. They sign the back of the money order and write "Pay to the order of [your name]" above their signature. This is called a third-party endorsement. You then sign below their endorsement. Both of you must go to the bank together with government-issued ID.

Many banks refuse to cash third-party money orders because the risk of fraud is higher—they can't easily verify that the original payee actually authorized the transfer to you. If the bank does accept it, they may charge an extra fee or require additional documentation. Your safest option is to ask the original payee to cash the money order themselves and then give you the cash, or to deposit it into their bank account and transfer the funds to you electronically.

What to do if the money order is damaged or the amount is unclear

If the money order is torn, water-damaged, or the amount is hard to read, the bank may refuse to cash it or ask you to contact the issuer first. Money orders are designed to be durable, but damage can make them unreadable to the bank's verification system. If this happens, call the customer service number on the money order or visit the issuer's website to report the damage and ask what to do next.

Some issuers will issue a replacement money order if you return the damaged one or provide proof of the original transaction. This process can take several business days. In the meantime, you can try cashing the damaged money order at the issuing bank in person—a teller may be able to verify it manually even if the machine can't read it. Bring your ID and be prepared to wait while they contact their back office to confirm the money order is legitimate.

Alternatives if the bank won't cash your money order

If your bank refuses to cash the money order or charges a fee you don't want to pay, you have other options. Check-cashing stores and payday loan shops will cash money orders, though they typically charge 1 to 3 percent of the amount as a fee. A $500 money order might cost you $5 to $15 to cash this way. Walmart and some grocery stores also cash money orders at their customer service desk, usually for $3 to $5.

The cheapest option is to deposit the money order into a bank account if you have one. Most banks let you deposit money orders through an ATM or mobile app without going to a teller, and there's no fee. If you don't have a bank account, opening one takes about 15 minutes and requires just an ID and a small deposit. Many banks offer free checking accounts with no minimum balance, so this can be worth doing if you receive money orders regularly.

Frequently Asked Questions

Can I cash a money order at an ATM?

No, ATMs do not cash money orders. You can deposit a money order into your account through most ATMs using the mobile app or envelope deposit, but you cannot withdraw cash directly. To get cash, you must go to a teller inside the bank during business hours.

What if the money order is made out to my business name instead of my personal name?

Bring the money order, your personal ID, and documentation that you own or are authorized to represent the business—such as a business license, articles of incorporation, or a letter from the business owner. The bank will verify that you're authorized to cash it on behalf of the business before processing it.

How long does it take for a bank to cash a money order?

If you're cashing it at the issuing bank and you have an account there, it takes minutes. If you're cashing it at a different bank or as a non-customer, it can take 5 to 15 minutes while the teller verifies the money order is legitimate. Some banks place a hold on the funds for one to three business days before you can withdraw them.

Can I cash a money order if it's more than a year old?

Money orders don't expire, but banks may refuse to cash very old ones because they're harder to verify. If the money order is more than a year old, call the issuer first to confirm it's still valid and that the funds haven't been returned. Bring documentation of the original transaction if you have it.

What if I lost the money order before cashing it?

Contact the issuer immediately with your receipt or proof of purchase. Most issuers will issue a replacement or refund if you can prove you bought it and haven't cashed it. This process typically takes 30 to 60 days. Keep your receipt in a safe place until the money order is cashed.