To cash a money order, take it along with a government-issued photo ID to your bank, a post office if it’s a USPS postal money order, or a grocery store, retailer, or check-cashing outlet that offers the service. Your own bank or credit union is almost always free for account holders, and USPS cashes its own money orders at no charge. Everywhere else you can expect a fee, with check-cashing stores charging the most. Don’t sign the back until the clerk tells you to.
What to Bring
You need two things: the original money order and a valid government-issued photo ID. A driver’s license, passport, or military ID all work. The name on your ID must match the name written on the “Pay To” line exactly. Federal rules require any business cashing a money order to collect your name, date of birth, address, and an identification number before completing the transaction.1FFIEC BSA/AML Manual. Assessing Compliance with BSA Regulatory Requirements – Customer Identification Program
Leave the back of the money order blank until you’re at the counter. The endorsement line is where you sign to release the funds, and a money order signed in advance is close to cash if it goes missing. The clerk will ask you to sign in front of them.
You also have to be the named payee. If someone else’s name is on the “Pay To” line, you can’t cash it. That person has to endorse and present it themselves, or deposit it and send you the money separately.
Where to Cash a Money Order
Start with your own bank or credit union. For account holders, cashing is usually free, the teller already has your identity on file, and you avoid the fees charged everywhere else. Some banks will also cash money orders for non-customers, especially if the money order was issued by that same bank, but a fee usually applies in that case.
If you’re holding a USPS postal money order, any post office will cash it for free.2United States Postal Service. Money Orders This is the simplest option when you don’t have a bank account or your bank is closed.
Grocery stores, big-box retailers, and convenience stores with customer service desks often cash money orders, and their hours tend to be longer than a bank’s. Dedicated check-cashing outlets do the same. All of these businesses must register with the Financial Crimes Enforcement Network as Money Services Businesses and follow federal anti-money-laundering rules.3Financial Crimes Enforcement Network. Money Services Business (MSB) Registration You pay for the convenience, and check-cashing stores charge the most.
At the Counter
Hand the clerk the money order and your ID. They’ll compare the payee name against the ID and check the document itself for signs of tampering. For USPS money orders, clerks look for a watermark visible against the light, a security thread with “USPS” woven through the paper, and on the newer red-and-blue design, a Pony Express rider watermark and a QR code for electronic verification.4United States Postal Service. Verifying U.S. Postal Service Money Orders Many retailers also run the money order through an electronic system that pings the issuer to confirm it hasn’t already been cashed or reported stolen.
Once the money order clears those checks, the clerk asks you to sign the endorsement line on the back while they watch. They count out your cash, and you’re done.
What You’ll Pay
The cost depends entirely on where you go.
- Your own bank or credit union: usually free for account holders.
- USPS post offices: free for postal money orders.2United States Postal Service. Money Orders
- Grocery stores and retailers: typically a flat fee of a few dollars, varying by chain.
- Check-cashing outlets: the most expensive. These stores commonly charge a percentage of the face value, often in the 3% to 5% range. On a $500 money order, that’s $15 to $25 off the top.
Don’t confuse the cost of cashing a money order with the cost of buying one. Cashing a USPS postal money order at the post office is free; buying one costs $2.55 for amounts up to $500 and $3.60 for amounts between $500.01 and $1,000.2United States Postal Service. Money Orders If you have a bank account, using it almost always beats paying anyone else.
Depositing Instead of Cashing
If you don’t need the physical cash right away, depositing the money order into your bank account is usually free and avoids every cashing fee. Banks treat money orders much like personal checks. Endorse the back at the counter or an ATM that accepts deposits.
Mobile deposit is unreliable for money orders. Some banks explicitly exclude them from the mobile app, so check your bank’s policy first. If the app rejects it, a branch or ATM will still take it.
The trade-off is a hold on the funds. Under Regulation CC, a USPS postal money order deposited in person at your bank must be available by the next business day.5eCFR. 12 CFR Part 229 – Availability of Funds and Collection of Checks Deposit the same postal money order at an ATM your bank owns and the funds are available on the second business day. Use an ATM owned by another institution and the hold can run up to five business days. Private money orders from Western Union or MoneyGram don’t get the next-day treatment and may fall under your bank’s standard check-hold policy.
Verifying a Money Order Before You Cash It
If someone handed you a money order and something feels wrong about it, check with the issuer before taking it to a counter. Each major issuer has a verification line:
- USPS: Money Order Verification System at 1-866-459-7822, or scan the QR code on newer postal money orders to check status online.6United States Postal Service. Verifying U.S. Postal Service Money Orders
- MoneyGram: check status on MoneyGram’s website or call 1-800-542-3590 with the money order number and exact amount.7MoneyGram. Learn About Safely Managing Money Orders From MoneyGram
- Western Union: 1-720-945-9361.
Suspected counterfeits or scams can be reported to the USPS Inspection Service at 1-877-876-2455.6United States Postal Service. Verifying U.S. Postal Service Money Orders Knowingly cashing a forged or altered postal money order is a federal crime carrying up to five years in prison.8Office of the Law Revision Counsel. 18 USC 500 – Money Orders
If the Money Order Is Lost or Stolen
Keep the receipt from the moment you buy or receive a money order. It carries the serial number needed to file a replacement claim, and without it the process is much harder.
For a USPS postal money order, take the receipt to any post office and ask to start a Money Order Inquiry. The investigation can take up to 60 days, and confirming the loss or theft may take another 30 days after that. Once confirmed, USPS issues a replacement. The processing fee is $21.2United States Postal Service. Money Orders You cannot stop payment on a postal money order, so the inquiry is the only route.
For a Western Union money order, submit a refund request through the online portal with the serial number, amount, purchase date, purchase location, and an image of the money order or receipt. If approved, you can pick up cash at a Western Union location in about five business days with a control number they provide. Refunds are only possible if the money order hasn’t been cashed, and Western Union may deduct processing fees from the amount returned.9Western Union Money Transfer. Retail Money Order Terms and Conditions Photograph your receipt the day you get the money order and store it somewhere separate from the money order itself.
One more reason not to let a money order sit too long: USPS postal money orders don’t expire and carry no dormancy fees, but private issuers like Western Union and MoneyGram may deduct a service charge if the money order goes uncashed for one to three years, depending on the state where it was bought.10Western Union. Money Orders: Purchase and Cash at a Western Union Near You Cash it when you get it.