The basic steps to deposit a money order
To deposit a money order into your bank account, you endorse the back of it, take it to your bank or credit union in person, and hand it to a teller along with your deposit slip. The teller will scan it, verify the amount, and credit the funds to your account. Most banks deposit money orders the same business day if you arrive before their cutoff time—usually 2 p.m. or 3 p.m. Some banks hold the funds for one to two business days before you can withdraw them, even though the deposit posts immediately.
You do not need to have the money order made out to you personally, but if it is made out to someone else, that person must endorse it first, and then you can add your own endorsement below theirs. If the money order is blank on the payee line, you can deposit it, but the bank may ask for ID to confirm you are the intended recipient.
Mobile deposit—photographing the front and back of the money order through your bank's app—works at many banks, but not all. Call your bank before you try it, because some institutions do not accept money orders through mobile deposit due to fraud concerns. If your bank does accept mobile deposits of money orders, the same hold period usually applies as in-person deposits.
Key Takeaways
- Sign the back of the money order in the endorsement area, then bring it to your bank with a deposit slip or use your bank's mobile deposit app if they accept money orders.
- Most banks deposit money orders the same business day, but may hold the funds for one to two business days before you can withdraw them.
- If the money order is made out to someone else, that person must sign it first; if it is blank, the bank may ask for ID.
- Not all banks accept mobile deposits of money orders, so confirm with your bank before trying to photograph and submit one through their app.
- Bring your account number or debit card to speed up the process, though the teller can look it up if you provide your ID.
How to endorse a money order correctly
The back of a money order has a line labeled "Endorse here" or similar language. Sign your name on that line exactly as it appears on the front of the money order. If your name on the money order is misspelled or different from how you normally sign, sign it the way it appears on the money order first, then sign it again the way you normally do. This protects you if there is a question about the signature.
Do not write anything else in the endorsement area—no account numbers, no instructions, no dates. Banks have seen endorsements used to hide fraud, so they are strict about what can appear there. If you make a mistake, ask the teller for a correction form or request a new money order from the issuer.
If the money order is made out to two people with "and" between the names, both people must sign it. If it says "or," either person can sign alone. If you are unsure, ask the teller before you sign, because once you sign a money order, you cannot undo it.
What happens if you deposit a money order at a bank where you do not have an account
Most banks will not deposit a money order into an account you do not hold with them. Some credit unions will deposit money orders for non-members for a fee, usually between $5 and $15. Check with credit unions in your area if you do not have a bank account, or ask the money order issuer whether they have a branch or partner location where you can cash it instead.
If you have a prepaid debit card account, some card issuers allow mobile deposits of money orders. Check your card's app or call the customer service number on the back of the card to confirm. The hold period and processing time may differ from a traditional bank.
Money order holds and when you can withdraw the funds
A hold is a delay the bank places on deposited funds before you can withdraw them. Money orders typically have a hold of one to two business days, though some banks hold them longer if the amount is large or if you are a new customer. The hold does not mean the deposit failed—it means the bank is verifying the money order is legitimate before releasing the funds to you.
You can usually see the deposit in your account balance the same day you deposit it, but that balance may show as "pending" or "available" differently depending on your bank's system. Ask the teller how long the hold will be when you deposit the money order, and confirm whether you can withdraw the funds before the hold lifts or only after.
If you need the money urgently, some banks will release funds early if you ask, though this is not may provide. A few banks have no hold on money orders if you are an established customer, so it is worth asking what your bank's policy is.
What to do if the money order is damaged or illegible
If a money order is torn, water-damaged, or the amount is hard to read, the bank may refuse to deposit it. Do not try to tape it or write over the damaged area—this will make the bank more likely to reject it. Instead, contact the money order issuer (usually printed on the front) and request a replacement. You will need the original money order number and the amount, which should be on your receipt.
The issuer will verify that the original money order was never cashed, then issue a new one. This process usually takes five to ten business days. Keep your receipt and the damaged money order until the replacement arrives and you have deposited it successfully.
Depositing a money order made out to a business or organization
If the money order is made out to a business, only that business can deposit it into their account. If you are depositing it on behalf of the business, you will need to be an authorized signer on the business account, or the business owner will need to endorse it to you and you will need to add your endorsement. Some banks require a letter from the business authorizing you to deposit on their behalf.
If the money order is made out to an organization like a nonprofit or government agency, contact that organization to find out how they want you to submit it. Many organizations have a specific mailing address or person who handles deposits, and they may not accept in-person deposits from the public.
Frequently Asked Questions
Can I deposit a money order at an ATM?
Most ATMs do not accept money orders. A few banks have ATMs that accept mobile deposits, which means you photograph the money order through the ATM's camera, but this is rare. Your safest option is to deposit it with a teller inside the bank during business hours.
What if my bank says the money order is fraudulent?
If the bank rejects a money order as fraudulent, do not deposit it anywhere else. Contact the issuer immediately with your receipt and the money order number. The issuer will investigate and tell you whether the money order is genuine. If it is genuine, the bank may have made an error and you can ask them to review it again.
How long does a money order deposit take to clear?
The deposit usually posts to your account the same business day. The hold—the time before you can withdraw the funds—is typically one to two business days, but can be longer depending on the bank and the amount. Ask your teller for the exact date the funds will be available.
Do I need a deposit slip to deposit a money order?
Most banks still use deposit slips, but some tellers can process the deposit without one if you provide your account number or debit card. It is faster to fill out a slip beforehand with the money order amount and your account number, but it is not required.
Can I deposit someone else's money order if they sign it?
Yes, if the money order is made out to them and they endorse it to you by signing the back. You then add your own signature below theirs. The bank may ask why you are depositing someone else's money order, so be prepared to explain the relationship. Some banks are cautious about third-party endorsements and may refuse to accept it.