You can cash a money order at a post office, a bank or credit union, many large retailers, or a check-cashing store. The cheapest place to cash a money order is the post office if it’s a USPS money order, or your own bank or credit union for any brand. Retailers charge a small flat fee and only take their partner brands. Check-cashing stores accept almost anything but charge the most.
Post Offices
Any Post Office in the country cashes USPS money orders, including APO and FPO locations on military bases.1USPS. Money Orders – The Basics There’s no fee, and you receive the full face value in cash.2USPS. Money Orders Bring a government-issued photo ID with a name that matches the payee line. USPS money orders don’t expire, so one that’s been sitting in a drawer for years is still good at full value.
The counter will only cash postal money orders. A Western Union or MoneyGram instrument gets turned away, and the reverse is also true at retailers. Check the brand on your money order before you head out.
Your Bank or Credit Union
If you hold a checking or savings account, your bank or credit union will typically cash or deposit any brand of money order at no charge. The bank already has your identity on file, which makes the transaction quick. Cashing gets you currency on the spot. Depositing routes the funds into your account, sometimes with a hold before you can withdraw them.
Banks are under no obligation to cash a money order for someone who isn’t a customer. Some will make an exception if they issued the money order themselves, but most decline walk-in requests from non-account-holders. Credit unions handle it the same way.
Cashing Versus Depositing
The difference matters. Cash it and you leave with currency. Deposit it and the bank may place a temporary hold on some or all of the funds. Under Regulation CC, a USPS money order deposited in person by the named payee has to be available by the next business day.3eCFR. 12 CFR Part 229 – Availability of Funds and Collection of Checks (Regulation CC) Western Union and MoneyGram money orders don’t get that preferential treatment; banks treat them like ordinary checks, which can mean a hold of two to five business days.
Many banks won’t accept money orders through mobile deposit at all. Bank of America, for example, excludes them and requires an in-person visit. Check your bank’s accepted-items list before you try the app.
Retail Stores and Grocery Chains
Big retailers that sell money orders often cash them too, with a brand restriction. Walmart’s customer service desks cash Western Union and MoneyGram money orders.4Walmart. Money Orders Grocery chains partnered with MoneyGram generally cash MoneyGram instruments. If you bought the money order at a particular chain, that same chain is usually your best shot for cashing it.
Fees are modest flat amounts that vary by location, usually a few dollars. The trade-off is inflexibility: bring the wrong brand and you’re turned away, no matter how legitimate the money order is.
Check-Cashing Stores
Dedicated check-cashing outlets take money orders from any major issuer and keep the longest hours, with some open late or 24/7. They operate as licensed money services businesses and register with FinCEN.5eCFR. 31 CFR Part 1022 – Rules for Money Services Businesses
The flexibility is expensive. These stores charge percentage-based fees rather than small flat amounts. Rates vary by state and company, but several percent of the face value is common, with minimums around $3 to $5. On a $500 money order, you might lose $15 to $50. Worth it when you have no bank account and need cash outside business hours. Not worth it otherwise.
What to Bring to the Counter
Every place that cashes a money order requires a government-issued photo ID matching the payee name. A driver’s license, state ID card, or U.S. passport all work.6MoneyGram. Anti-Money Laundering – Consumer Identity (ID) Verification Requirements If you aren’t a U.S. citizen, a foreign passport with country indicated, a permanent resident card, or a Mexican matricula consular card are accepted at post offices and many retailers.7USPS. Funds Transaction Report (FTR)
Any mismatch between your ID and the payee line will get you turned away. If your name is misspelled on the money order, contact the sender and ask them to request a correction or replacement from the issuer.
Sign It at the Counter, Not Before
Wait to sign the endorsement line on the back until you’re standing in front of the clerk or teller. A signed money order is close to loose cash: anyone who picks it up could walk in and collect. If you’re unsure where to sign, the clerk will point to the designated area.
Check That the Money Order Is Real Before You Cash It
Counterfeit money orders are a common tool in overpayment scams. If a money order came from someone you don’t know well, verify it before taking it to a counter.
USPS money orders carry a Benjamin Franklin watermark visible when held to the light, running top to bottom on the left, and a dark security thread with “USPS” repeated along it.8USPS. Verifying U.S. Postal Service Money Orders Discoloration around the dollar amounts can signal tampering. If anything looks off, call the USPS Money Order Verification System at 866-459-7822 before you try to cash it.9USPS. Verifying U.S. Postal Service Money Orders For Western Union money orders, the inquiry line is 720-945-9361.
What Happens if You Deposit a Fake
If you deposit a counterfeit money order, the bank credits your account because federal availability rules require it. When the fraud is discovered days or weeks later, the bank reverses the credit and pulls the money back out. If you’ve already spent it, your account goes negative and the shortfall becomes a debt you owe.10Office of the Comptroller of the Currency. Fraudulent Cashiers Checks – Guidance to National Banks Concerning Schemes Involving Fraudulent Cashiers Checks The bank’s right to charge you back isn’t affected by having made the funds available. You bear the loss.
The classic version: a stranger sends you a money order for more than what you’re owed and asks you to wire back the difference. By the time the instrument bounces, you’ve sent real money to the scammer. Any overpayment with a request for a refund is almost certainly fraud.
Quick Comparison
- Post office: free for USPS money orders only, standard business hours. The right choice if you’re holding a postal money order.
- Your bank or credit union: usually free for account holders, any brand accepted. Deposited funds may be held one to five business days depending on the brand.
- Retail stores such as Walmart or grocery chains: small flat fees, limited to partner brands, standard store hours.
- Check-cashing stores: percentage-based fees that add up fast, accept most brands, often open late or around the clock.
Between depositing at your bank and cashing at a check-cashing store, the bank wins on cost every time. The only reasons to use a check-cashing outlet are no bank account, a need for cash outside banking hours, or a money order brand that nothing else nearby will take.