Banks will cash money orders, but not all of them, and not always without a fee

Most banks will cash a money order if you have an account with them, though some charge a fee between $1 and $5. Banks that do not require an account may still cash them, but you will often pay more or face restrictions—some will only cash money orders issued by their own institution. Credit unions typically cash money orders for members at no charge, and some will cash them for non-members for a small fee. The fastest way to find out what your bank charges is to call the branch directly or check their website under "money order services" or "check cashing".

If your bank will not cash it or charges too much, you have other options that are often faster and cheaper. Grocery stores, Walmart, and other retailers with money services desks will cash money orders for $1 to $3, and many do not require membership. The U.S. Postal Service cashes money orders it issued at any post office for free if you have the receipt, or for a small fee if you do not. Pawn shops and check-cashing stores will also cash them, though fees run higher—usually $3 to $10 depending on the amount.

Key Takeaways

  • Banks charge $1 to $5 to cash money orders, and some require you to have an account with them.
  • Credit unions often cash money orders free for members and may cash them for non-members at a lower cost than banks.
  • Grocery stores, Walmart, and the U.S. Postal Service typically charge $1 to $3 and do not require membership or an account.
  • Money orders issued by the U.S. Postal Service can be cashed at any post office for free if you have the receipt.
  • Check-cashing stores and pawn shops will cash money orders but usually charge $3 to $10, making them the most expensive option.

What banks charge to cash a money order

Bank fees for cashing money orders vary by institution and by whether you hold an account. Most large banks—Chase, Bank of America, Wells Fargo, and similar—charge $1 to $3 for account holders and $3 to $5 for non-account holders. Some regional or community banks charge nothing for account holders but may refuse to cash money orders from non-members entirely. A few banks have stopped cashing third-party money orders altogether, so calling ahead is worth the time.

The fee is separate from any fee the money order issuer charged when you bought it. If you paid $1.50 to buy the money order at a store and your bank charges $2 to cash it, your total cost is $3.50. For large money orders—$500 or more—even a $3 fee is small relative to the amount. For small ones under $100, the fee eats into what you actually receive, so comparing options makes sense.

Credit unions and why they often cost less

Credit unions typically cash money orders for members at no charge, and some will cash them for non-members for $1 to $2. If you belong to a credit union, this is usually your cheapest option. Many credit unions are part of shared branching networks, meaning you can walk into a different credit union branch and cash a money order even if you do not bank there—as long as both are in the network.

To find a credit union near you, search the CO-OP Network or Alliant Credit Union's shared branching locator online. If you do not have a credit union account, opening one is often free and takes 10 to 15 minutes online or in person. Some credit unions have no minimum balance requirement and no monthly fee, making membership worth it if you cash money orders regularly.

Retail and postal options that do not require an account

Walmart, Target, and most grocery stores with money services desks will cash money orders for $1 to $3, and you do not need an account or membership. Walmart's fee is typically $3 for money orders over $1,000 and $1 to $2 for smaller amounts. These locations are often open longer than banks and on weekends, so they work well if you need cash outside normal banking hours.

The U.S. Postal Service cashes money orders it issued at any post office for free if you bring the receipt. If you lost the receipt, the post office will still cash it but may charge $1 to $2 and will ask for identification. Money orders from other issuers—MoneyGram, Western Union, or bank-issued money orders—can be cashed at post offices, but the fee is usually $1.50 to $2. Post offices are typically open Monday through Friday and Saturday mornings, so plan accordingly.

When to use check-cashing stores and pawn shops

Check-cashing stores and pawn shops will cash money orders, but they charge the most—usually $3 to $10 depending on the amount and the store's location. Use these only if other options are closed or unavailable. Some charge a percentage of the money order amount rather than a flat fee, which can be expensive for large amounts. Always ask the fee upfront before handing over the money order.

Pawn shops may also ask for identification and may keep a record of the transaction. If you are in a hurry and other places are closed, a pawn shop is a backup, but it should not be your first choice. The same applies to check-cashing stores—they exist for situations where banks are not available, not because they offer a better deal.

Money orders issued by specific companies

MoneyGram and Western Union money orders can be cashed at their agent locations—usually grocery stores, Walmart, or check-cashing stores—for a fee of $1 to $3. You do not need an account with MoneyGram or Western Union to cash them; you just need the money order itself and a valid ID. Some locations may limit the amount they will cash in a single day, so ask before you hand it over.

Bank-issued money orders—those sold by Chase, Bank of America, or other banks—can usually be cashed at any bank, though you may pay a fee if you do not have an account there. If you know which bank issued it, calling that bank first is often the cheapest route. Some banks will cash their own money orders for free even for non-customers, though this varies by location.

What to bring and what to expect

Bring the money order itself and a valid photo ID—a driver's license, passport, or state ID card. Some places will ask for a second form of ID or your phone number. If the money order is made out to you by name, the name on your ID must match. If it is made out to "cash" or "bearer," anyone with the money order can cash it, so treat it like cash and keep it safe.

The transaction usually takes 5 to 10 minutes. The cashier will inspect the money order for signs of tampering or forgery, scan or write down the serial number, and then hand you cash or deposit the funds into an account if you request it. If the money order is damaged, faded, or looks altered, the cashier may refuse to cash it. If that happens, contact the issuer—the organization that sold you the money order—to request a replacement.

Frequently Asked Questions

Can I deposit a money order into my bank account instead of cashing it?

Yes. Most banks let you deposit money orders into your account through an ATM, mobile app, or at a teller window. Depositing usually takes 1 to 3 business days to clear, while cashing gives you cash immediately. If you do not need the cash right away, depositing is often easier and avoids fees.

What if the money order is torn or damaged?

Most places will refuse to cash a damaged money order. Contact the issuer—the post office, MoneyGram, Western Union, or the bank that sold it—with your receipt and serial number. They will issue a replacement, though the process takes 7 to 30 days depending on the issuer. Keep your receipt in case this happens.

Can I cash a money order made out to someone else?

No. A money order made out to a specific person can only be cashed by that person. If it is made out to you but signed by someone else, that person must endorse it on the back and you must sign below their signature, but policies vary by location. Call ahead to ask if the place you plan to use will accept an endorsed money order.

Do I need to cash the money order right away?

Money orders do not expire, but some issuers stop honoring them after a set period—usually one to three years. Check the money order itself for an expiration date. If it is close to expiring, cash or deposit it soon. If it has already expired, contact the issuer to request a replacement.

What is the difference between cashing and depositing a money order?

Cashing gives you physical cash immediately. Depositing puts the funds into your bank account, which usually takes 1 to 3 business days to clear. Depositing is safer if you do not need cash right now, and it avoids the fee many places charge to cash. Cashing is faster if you need the money today.