To get a money order from your bank, bring a government-issued photo ID and the recipient’s full legal name to a teller, then pay the face amount (up to $1,000 per order) plus a fee that usually runs $5 to $10. Most banks sell money orders only to their own account holders and pull the funds straight from checking or savings; a few will sell to non-customers paying in cash. The whole transaction takes about five minutes once you reach the window.
What to Bring
Every bank requires a valid government-issued photo ID. A driver’s license, passport, or military ID works at virtually any institution. Federal law requires banks to verify your identity when selling money orders, and the requirements tighten for cash purchases of $3,000 or more.
Know the recipient’s full legal name before you arrive. The teller prints it directly onto the money order, and most banks won’t let you change the payee after issuance. Write the name down if there’s any chance you’ll misspell it. You don’t usually need the recipient’s address, but you will need your own.
If you’re an account holder, the money comes out of your checking or savings. If you’re not, call ahead: some branches sell to non-customers who pay in cash, and some don’t. Non-customers paying $3,000 or more in cash should expect to provide a Social Security number and date of birth on top of the ID.
What It Costs
Bank money order fees generally fall between $5 and $10 per document. Some banks waive the fee for customers with premium checking accounts or balances above a set threshold. A few charge as little as $1 or $2.
For comparison, the U.S. Postal Service charges $2.55 for money orders up to $500 and $3.60 for orders between $500.01 and $1,000.1USPS. Sending Money Orders If your bank charges on the higher end and you need several money orders, the gap adds up quickly.
The $1,000 Per-Order Cap
Money orders are capped at $1,000 per document at most issuers, banks included.1USPS. Sending Money Orders If you owe someone $2,500, you’ll buy three money orders and pay three fees. For a payment that large, a cashier’s check is often cheaper: cashier’s checks have no standard upper limit and typically cost $10 to $15, so one cashier’s check can beat three money orders on both price and paperwork.2Citizens Bank. What Is a Money Order, and How Do They Compare to Other Cash Payments?
At the Teller Window
The process is quick once you’re prepared:
- Tell the teller the exact dollar amount and the payee’s full legal name. If you’re an account holder, the teller processes a withdrawal. If you’re paying cash, hand over the face amount plus the fee.
- Present your ID. The teller verifies you against the bank’s records or, for non-customers, checks the photo ID directly.
- Sign the purchaser line when the teller prints the document. Don’t sign anywhere else, and don’t sign the back. The back is for the recipient’s endorsement.
- Take your receipt or detachable stub and keep it separate from the money order itself.
Guard the Receipt
That receipt carries the serial number the bank uses to trace the money order if anything goes wrong. Lose the money order with the receipt in hand and you can request a cancellation and refund or a replacement, usually for a processing fee. Lose both and the issuer has to research the transaction from scratch, which costs more and takes longer. Photograph the receipt as soon as you leave the counter.
Federal Reporting Rules on Cash Purchases
A single money order for rent or a car payment won’t trigger anything special. Two cash thresholds do matter, though, because money orders are a frequent tool for laundering cash.
$3,000 or More in Cash
When you buy money orders with $3,000 or more in cash, whether in one order or several that add up to that amount, the bank must record your identity and keep detailed records of the transaction. Account holders are verified through the bank’s existing files. Non-customers must provide a government ID, Social Security number, and date of birth.3eCFR. 31 CFR 1010.415 – Purchases of Bank Checks and Drafts, Cashier’s Checks, Money Orders and Traveler’s Checks The bank also records the serial numbers, amounts, and date of every money order in the transaction.4Office of the Law Revision Counsel. 31 USC 5325 – Identification Required to Purchase Certain Monetary Instruments
More Than $10,000 in Cash in a Day
If your cash money order purchases total more than $10,000 in a single day, the bank must file a Currency Transaction Report with the federal government.5FinCEN. Notice to Customers: A CTR Reference Guide It’s automatic and does not mean you’ve done anything wrong. The report simply documents the transaction.
Never Split a Purchase to Stay Below the Threshold
Deliberately breaking a large purchase into smaller ones to duck these thresholds is called structuring, and it’s a federal crime even when the money is clean. Buying $9,500 in money orders at one branch and $2,000 at another the same day to dodge the $10,000 report is exactly what federal investigators look for. Penalties include up to five years in prison, or up to ten if the structuring is part of a broader pattern of illegal activity.6Office of the Law Revision Counsel. 31 USC 5324 – Structuring Transactions to Evade Reporting Requirement If you legitimately need $12,000 in money orders, buy them and let the bank handle the paperwork.
Skip the Credit Card
Even where a bank or retailer allows it, buying a money order with a credit card is almost always processed as a cash advance. Interest starts accruing immediately with no grace period, the rate is higher than your purchase APR, and the issuer charges a separate cash advance fee on top of the money order fee. You also won’t earn rewards. Pay with cash, a debit card, or a withdrawal from your bank account instead.
Where Else You Can Buy One
Your bank isn’t the only option, and it’s often not the cheapest. If you don’t need the purchase tied to your account:
- The U.S. Post Office charges $2.55 for orders up to $500 and $3.60 from $500.01 to $1,000.1USPS. Sending Money Orders
- Walmart sells MoneyGram money orders for under $1 each, the cheapest retail option. You’ll pay cash or use a debit card.
- Grocery and convenience stores sell Western Union or MoneyGram money orders, usually for $1 to $5.
- Western Union agent locations sell them with fees that vary by amount and location.
All of them follow the same $1,000-per-order cap, and the same federal cash-reporting rules apply no matter where you buy. Going to a convenience store instead of a bank does not avoid the $3,000 or $10,000 thresholds.