How to cash a money order at a bank or check-cashing location

To get the money from a money order, you take it to a bank, credit union, or check-cashing store and exchange it for cash or a deposit to your account. The person or business that issued the money order has already paid for it, so the funds are may provide — you are not waiting for a check to clear. Most banks and credit unions cash money orders for free if you have an account with them; check-cashing stores charge a fee, usually between $1 and $5 depending on the amount.

You will need to bring the money order itself and a valid photo ID. The cashier will ask you to sign the back of the money order in front of them — this is a security step to confirm you are the person it was issued to. If the money order is made out to someone else, you cannot cash it unless that person signs it over to you first, and even then, many locations will not accept a third-party money order.

The process takes just a few minutes. You hand over the money order and ID, sign it, and walk out with cash or a receipt showing the deposit. There is no waiting period — the money is yours when ready because the issuer already transferred the funds when they bought the money order.

Key Takeaways

  • Banks, credit unions, and check-cashing stores all cash money orders, and banks usually do it for free if you have an account.
  • You must sign the back of the money order in front of the cashier and show a valid photo ID.
  • Money orders are not subject to a clearing period — you get your cash or deposit the same day.
  • If a money order is made out to someone else, that person must sign it over to you, and many locations will refuse to cash third-party money orders.
  • Check-cashing stores charge a fee to cash money orders, while banks and credit unions may charge nothing if you are a member.

Where to cash a money order

Your bank or credit union is usually the fastest and cheapest option. Walk into any branch during business hours with the money order and your ID. If you have a checking or savings account, most banks will not charge you. If you do not have an account, some banks will still cash it for a small fee — call ahead to ask, because policies vary by bank and branch.

Walmart, Target, and other large retailers have money services counters that cash money orders for a flat fee, usually around $3. These are open during store hours, which is often longer than a bank branch. Grocery stores and pharmacies with money services desks offer the same service.

Check-cashing stores are everywhere and have extended hours, but they charge the highest fees — typically $2 to $5 depending on the amount. Use them only if you cannot reach a bank or retail location. Never use an unlicensed or informal money-cashing service; stick to established businesses with a physical location and a license posted on the wall.

What to do if the money order is damaged or lost

If the money order is torn, water-damaged, or partially illegible, most places will still cash it as long as the amount and issuer information are clear. Show it to the cashier — they will decide whether it is acceptable. If it is refused, contact the issuer (the business or post office that sold it) with your receipt or proof of purchase, and they can issue a replacement.

If the money order is lost before you cash it, contact the issuer when ready with your receipt. Most money order issuers will put a stop on the original and issue a replacement, but there may be a small fee — usually $1 to $5. You will need to provide the receipt number, the amount, and the date it was issued. The issuer will verify that it has not already been cashed.

Understanding money order fees and limits

The person who bought the money order already paid a fee to the issuer when they purchased it — that fee is not your responsibility. When you cash it, you may face a second fee only if you use a check-cashing store or a bank where you do not have an account. Banks and credit unions typically charge nothing for their members.

Money orders have a maximum amount you can purchase in a single order, which varies by issuer. The U.S. Postal Service caps money orders at $1,000. Western Union and other private issuers may allow higher amounts, but you can always purchase multiple money orders if you need to send or receive more than the limit. There is no limit on how many money orders you can cash at once.

What happens if the money order is made out to the wrong person

If a money order is made out to you but has a misspelling of your name, most cashiers will still accept it as long as the ID you show matches the name on the money order. Bring your ID and let the cashier decide — minor spelling variations are usually not a problem.

If the money order is made out to someone else entirely, you cannot cash it. The person it is made out to must sign the back and write "Pay to the order of [your name]" above their signature. Even then, many banks and check-cashing stores refuse third-party money orders because of fraud concerns. Your best option is to ask the original recipient to cash it themselves and give you the money, or to contact the issuer and ask them to issue a new one in your name.

How to deposit a money order into your bank account

You can deposit a money order directly into your bank account instead of cashing it for paper money. Sign the back of the money order, write your account number on it, and either hand it to a teller at your bank or use mobile deposit if your bank offers it. Mobile deposit lets you photograph the front and back of the money order using your phone and submit it through the bank's app — the funds usually appear in your account within one business day.

Depositing is often faster than cashing because you do not have to visit a branch in person. It also leaves a record in your account, which is useful for your records. The money order clears when ready because the issuer has already may provide the funds.

Frequently Asked Questions

Can I cash a money order without an ID?

No. Banks, check-cashing stores, and retailers all require a valid photo ID to cash a money order. This is a federal requirement to prevent fraud and money laundering. If you do not have an ID, you cannot cash the money order yourself, but the person it is made out to can cash it with their ID.

How long does it take to cash a money order?

Cashing a money order takes five to ten minutes in person. There is no clearing period — the money is available when ready because the issuer already transferred the funds when they purchased the money order. If you deposit it through mobile banking, the funds appear in your account within one business day.

What if the money order issuer is out of business?

If the issuer is out of business, you can still cash the money order at most banks and check-cashing stores — they will contact the issuer's bank to verify the funds. If verification fails, contact the issuer's customer service line or the state agency that regulates money order issuers in your state. Keep your receipt and the money order itself.

Can I cash a money order at an ATM?

No. ATMs do not cash money orders. You must go to a bank teller, credit union, check-cashing store, or retail money services counter. Some banks let you deposit a money order through an ATM envelope, but you cannot withdraw cash from it at the machine.

Is there a time limit on cashing a money order?

Money orders do not expire in the traditional sense, but most issuers stop honoring them after one to three years of inactivity. Check the back of your money order for the expiration date or contact the issuer. If it has expired, contact the issuer with your receipt to request a replacement or refund.