If you’ve received a money order and aren’t sure what to do next, don’t worry the process is simple.
A money order works a lot like a check. It’s a paper document that represents a specific amount of money. But just like a check, it’s not usable until you cash it or deposit it into your bank account.
Let’s walk through your options, where to go, what it costs, and how to avoid common mistakes.
What Is a Money Order, Really?
Think of a money order as a prepaid check.
Someone buys it in advance and fills in your name as the recipient. Because it’s prepaid, it’s generally safer than a personal check the money is already set aside.
But until you cash or deposit it, it’s just a piece of paper.
How to Cash a Money Order
Cashing a money order is very similar to cashing a check.
Step 1: Go to a Location That Cashes Money Orders
Common places include:
-
Your bank or credit union
-
The company that issued the money order
-
Grocery stores or retail stores
-
Check-cashing stores
Step 2: Sign the Back (Endorse It)
Just like a check, you’ll sign your name on the back.
Important: Wait until you are inside the store or bank and ready to hand it to the teller before signing. This helps prevent theft if it gets lost.
Step 3: Show a Valid Photo ID
You’ll need government-issued identification, such as:
-
Driver’s license
-
Passport
-
Military ID
Step 4: Pay Any Required Fee
If you’re not using your own bank, you’ll likely pay a fee. The amount depends on where you go and the value of the money order.
Step 5: Collect Your Cash
Put it away securely before leaving the counter.
Best Places to Cash a Money Order
Not all locations are equal. Some are cheaper and faster than others.
1. Your Bank or Credit Union (Best Option)
If you already have an account, this is usually the safest and least expensive choice.
Most banks cash money orders for customers at little or no cost. However, depending on your bank’s funds availability policy, you may not get the entire amount immediately. Some or all of it may be deposited into your account first.
If you’re a credit union member, you may even be able to use shared branching services at another participating credit union.
2. The Money Order Issuer
You can also go directly to the company that issued it.
For example:
-
A USPS money order can be cashed at a United States Postal Service location.
-
A Western Union money order can be cashed at a Western Union office.
-
A MoneyGram money order can be handled at a MoneyGram location.
This option can reduce fees and may give you quicker access to the full amount. However, not every location that sells money orders will cash them, so it’s smart to call ahead.
3. Retail Stores and Check-Cashing Locations
Many grocery stores and big retailers offer money services.
For example, Walmart typically cashes MoneyGram money orders, including on Sundays when banks are closed.
Be aware: check-cashing stores and convenience stores often charge higher fees.
Should You Deposit Instead of Cash?
In many cases, depositing the money order into your bank account is the smarter move.
Here’s why:
-
Your money is safer in the bank.
-
You can withdraw only what you need.
-
You avoid carrying large amounts of cash.
-
It may reduce fees.
How to Deposit a Money Order
The process is exactly like depositing a check:
-
Sign the back.
-
Fill out a deposit slip.
-
Submit it to the teller or ATM.
You may also be able to use mobile deposit but check with your bank first. Some banks do not allow mobile deposits for money orders or may require you to bring in the original document.
What Are the Fees?
Fees vary widely depending on where you go.
-
Your own bank: Often free.
-
Issuer locations: Usually low cost.
-
Retail stores: Small flat fee.
-
Check-cashing stores: Higher percentage-based fees.
If you receive money orders frequently (for example, from gig work or rent payments), opening a bank account can save you money long-term even if there’s a small monthly maintenance fee.
Watch Out for Money Order Scams
Money order scams are common, especially in online sales or job offers.
Here’s a classic scam:
Someone sends you a money order for more than you’re owed and asks you to send back the difference. The money order later turns out to be fake and you’re responsible for the full amount.
Never:
-
Accept overpayments.
-
Send money back before verifying funds.
-
Cash suspicious money orders.
If you’re unsure, contact the issuing company directly using the official phone number listed on their website not a number provided by the sender.
Also, cash or deposit the money order as soon as possible. In some cases, the buyer can attempt to cancel it.
Where to Buy a Money Order
If you need to send one yourself, you can purchase money orders at:
-
Your bank or credit union
-
United States Postal Service locations
-
Retailers offering MoneyGram or Western Union services
Money orders are useful if you don’t want to use a personal check or share your bank account information.
Frequently Asked Questions
Can I Cash a Money Order Written to Someone Else?
Yes but only if the original recipient signs it over to you.
They must write:
“Pay to the order of [Your Name]”
Then sign underneath it. After that, you can cash it like a regular endorsed check.
Where Can I Cash a Money Order for Free?
Your best bet is your own bank or credit union. Most retailers charge at least a small fee.
Where Can I Cash a Money Order on Sunday?
Banks are usually closed, but retailers like Walmart often offer money services seven days a week.
