Banks will cash money orders, but not all of them and not always without conditions
Most banks will cash a money order if you have an account with them. Some will cash one even if you don't, though they may charge a fee or require you to deposit it instead of taking cash. Credit unions often have the same policy as banks. The catch: the money order must be issued by a bank, the U.S. Postal Service, or a major money order company like MoneyGram or Western Union. A money order from a grocery store, check-cashing place, or small retailer may not be cashable at a bank at all.
The reason banks are selective is fraud. A counterfeit or altered money order looks real enough to fool a teller, and the bank eats the loss if it turns out to be fake. Banks also won't cash a money order if it's damaged, if the signature doesn't match the payee name, or if it's been altered. If you're the person who received the money order, you'll need to bring ID. If someone else is trying to cash it on your behalf, most banks won't do it without your signature on the back and a power of attorney or notarized authorization.
Key Takeaways
- Banks will cash money orders issued by banks, the U.S. Postal Service, MoneyGram, or Western Union, but may refuse money orders from retail locations.
- You will need a valid ID to cash a money order at a bank, and the name on the money order must match the name on your ID.
- Banks may charge a fee to cash a money order if you don't have an account with them, or they may require you to deposit it instead.
- A money order that is damaged, altered, or missing a signature will be refused by the bank.
- If the money order is made out to someone else, the bank will not cash it unless that person endorses it and you have written authorization.
What happens when you walk in with a money order
Bring your ID and the money order itself. The teller will examine it for signs of tampering or damage—torn edges, water damage, or ink that looks smudged or uneven can all trigger a refusal. They'll check that the amount is filled in clearly, that the payee name (the person it's made out to) matches your ID, and that it's been signed by whoever issued it.
If everything looks good, the teller will run it through a verification system. For USPS money orders, they can check the postal service database. For MoneyGram and Western Union, they have access to those networks. For bank-issued money orders, they can verify it against the issuing bank's records. This takes a few minutes. If the money order was reported lost or stolen, or if it's already been cashed, the system will flag it and the bank will refuse it.
Once verified, the bank will either hand you cash or deposit it into your account, depending on what you ask for and what the bank allows. Some banks have daily limits on how much cash they'll hand out for a money order—this varies by bank and by the size of the order.
When a bank will refuse to cash a money order
Banks refuse money orders for specific reasons, and knowing them can save you a trip. A money order from a retail location—a grocery store, Walmart, or a check-cashing storefront—is not may provide to be cashable at a bank. These retailers issue their own money orders, and banks don't always have verification systems for them. You can call your bank ahead of time and ask whether they'll cash a money order from a specific retailer.
A money order that has been altered will be refused. This includes crossing out the payee name and writing a new one, changing the amount, or adding a signature that doesn't match the original. Banks are trained to spot these changes, and they will not cash an altered money order under any circumstances.
A money order with no signature from the issuer will be refused. The person or organization that issued the money order must have signed it. If it's blank, the bank will not cash it. Similarly, if the payee (the person it's made out to) has not signed the back, the bank may refuse it or require you to sign it in front of the teller.
A money order that is damaged beyond readability will be refused. If the amount is illegible, the payee name is torn off, or the issuer's information is missing, the bank cannot verify it and will not cash it. In this case, you'll need to contact the issuer and request a replacement.
Cashing a money order without a bank account
If you don't have an account at the bank, you have two options: deposit the money order into an account at another bank, or ask the bank to cash it for a fee. Not all banks will do the second option. Some banks will only cash money orders for their own customers. Others will cash them for non-customers but charge $5 to $15 depending on the amount and the bank's policy.
Your best bet if you don't have an account is to ask the bank directly before you get in line. Call the main number, explain that you have a money order and no account, and ask whether they'll cash it and what the fee is. If they won't, ask where you can cash it—they may refer you to a check-cashing service, though those typically charge higher fees than banks do.
What to do if the bank refuses your money order
If the bank refuses to cash your money order, ask why. The teller should tell you the specific reason: it's damaged, it's from an unrecognized issuer, the name doesn't match your ID, or it's already been cashed. Write down the reason and the name of the teller or manager who refused it.
If the money order is damaged or was issued by a retailer, contact the issuer directly. Bring the money order with you or have the issuer's customer service number ready. Explain what happened. If the money order is legitimate and was issued by that organization, they can issue a replacement. This process usually takes 7 to 10 business days, though some issuers are faster.
If the bank says the money order has already been cashed, and you know you haven't cashed it, contact the issuer immediately. This could mean someone else cashed it fraudulently, or there's an error in their system. The issuer can investigate and may issue a replacement if fraud is confirmed. Keep the original money order as evidence.
If the issue is that your ID doesn't match the payee name, you'll need to have the person whose name is on the money order come to the bank with you and endorse it (sign the back). Then you can cash it as a third party, though some banks may still refuse this or charge an extra fee.
Money orders from different issuers and what banks accept
| Issuer | Bank acceptance | Verification method |
|---|---|---|
| U.S. Postal Service | Nearly all banks accept | USPS database lookup |
| MoneyGram | Nearly all banks accept | MoneyGram network verification |
| Western Union | Nearly all banks accept | Western Union network verification |
| Bank-issued (from another bank) | Most banks accept | Issuing bank verification |
| Retail location (Walmart, grocery store, etc.) | Varies by bank and retailer | May not have verification system |
| Check-cashing service | Varies; many banks refuse | May not have verification system |
Frequently Asked Questions
Can I cash a money order at a bank that didn't issue it?
Yes, as long as the money order is from the USPS, MoneyGram, Western Union, or another bank. Banks have access to verification systems for these issuers. Money orders from retail locations or check-cashing services are less likely to be accepted. Call ahead to confirm.
What if the money order is made out to my business, not my personal name?
You'll need to bring a business ID or documentation showing you're authorized to represent the business. Some banks require a business account to cash a business money order. Call your bank first to ask what documents they need.
Can I cash a money order if I lost my ID?
No. Banks require a valid government-issued ID to cash a money order. If you've lost your ID, you'll need to get a replacement from your state's DMV or the equivalent agency before the bank will cash it.
How long does it take a bank to verify a money order?
Usually a few minutes. The teller runs it through the issuer's verification system, which returns a result almost immediately. If there's a delay or the system is down, the bank may ask you to come back later or deposit the money order instead of cashing it.
What if someone else's name is on the money order but they want me to cash it?
The person whose name is on the money order must endorse it by signing the back. Then bring both that person and your ID to the bank. The bank may still refuse to cash it as a third-party transaction, or they may charge a fee. Some banks won't do this at all, so call ahead.