You can cash a money order at a post office, at your bank or credit union, at large retailers like Walmart and grocery chains, or at a check-cashing store. So where can you cash a money order for the least money? A U.S. Post Office, if you have a USPS money order, since USPS cashes its own instruments free at any location nationwide.1USPS. Money Orders Your bank or credit union is the next-cheapest stop and usually free if you have an account there. Retail stores charge a small flat fee and only accept their partner brand. Check-cashing outlets take almost anything but charge a percentage of the face value.
Post Offices
Any Post Office in the country will cash a domestic USPS money order, including APO and FPO locations on military bases.2USPS. Money Orders – The Basics There is no fee, and you walk out with the full face value in cash.1USPS. Money Orders Bring a government-issued photo ID matching the payee name on the front. USPS money orders never expire, so one that has been sitting in a drawer for years is still good at full value.
Post offices only cash their own money orders. If you’re holding a Western Union or MoneyGram instrument, a postal clerk will turn you away, and the reverse also holds: a store that sells MoneyGram money orders won’t cash a postal one. Check the brand on the face of your money order before you go.
Banks and Credit Unions
If you have a checking or savings account at a bank or credit union, you can typically cash or deposit any brand of money order there at no charge. The bank already has your identity on file, so the transaction is straightforward. Cashing hands you the currency on the spot; depositing routes the funds into your account.
Without an account at that particular bank, expect to be turned away. Some banks will cash a money order for a non-customer if the money order was issued by that same bank, but most decline walk-in requests. Credit unions follow similar policies.
Depositing Versus Cashing
The difference affects when you can actually spend the money. Cash a money order and you leave with currency. Deposit one and the bank may place a temporary hold on part or all of the funds. Under Regulation CC, a USPS money order deposited in person by the named payee must be available by the next business day.3eCFR. 12 CFR Part 229 – Availability of Funds and Collection of Checks (Regulation CC) Private money orders from Western Union or MoneyGram don’t get that preferential treatment. Banks treat them like ordinary checks, which can mean a hold of two to five business days depending on the paying bank’s location.
Mobile deposit often isn’t an option. Bank of America, for example, excludes money orders from its mobile deposit feature and requires an in-person visit. If you’re planning to snap a photo through your bank’s app, confirm the item is accepted first.
Retail Stores and Grocery Chains
Large retailers that sell money orders often cash them too, but almost always with a brand restriction. Walmart cashes Western Union and MoneyGram money orders at its customer service desks.4Walmart. Money Orders Grocery chains that partner with MoneyGram will generally cash MoneyGram instruments. If you bought the money order at a particular store, that chain is usually your safest bet for cashing it there too.
Retail fees tend to be modest flat amounts, a few dollars at most, though they vary by location and chain. The trade-off is limited flexibility: show up with the wrong brand and the clerk will decline the transaction regardless of the money order’s legitimacy.
Check-Cashing Stores
Dedicated check-cashing outlets accept money orders from most major issuers and keep extended hours, sometimes overnight. They operate as licensed money services businesses and must register with FinCEN, run written anti-money laundering programs, and file suspicious activity reports when warranted.5eCFR. 31 CFR Part 1022 – Rules for Money Services Businesses
That flexibility costs you. Check-cashing 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 often in the $3 to $5 range. On a $500 money order, you might give up $15 to $50. If you don’t have a bank account, need cash outside business hours, or hold a brand that nothing else nearby accepts, that cost may be worth paying. Otherwise, a bank or post office is cheaper every time.
What to Bring and How to Sign
Every location that cashes money orders requires a government-issued photo ID matching the payee name on the front of the instrument. A driver’s license, state-issued 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 name will get you turned away. If your name is misspelled on the money order, contact the sender and have them request a correction or replacement from the issuer.
Wait until you’re at the counter to sign the back. The endorsement line sits in a designated spot, and the clerk can point you to it. Sign at home and lose the money order on the way, and whoever picks it up can potentially cash it. Treat an unsigned money order like an unsigned check and an endorsed one like loose cash.
Confirm It’s Real Before You Cash It
Counterfeit money orders show up regularly in overpayment scams. Before you present one from someone you don’t know well, verify it.
USPS money orders carry specific security features: a Benjamin Franklin watermark visible when held to the light, running top to bottom on the left side, and a dark security thread also visible against light with the word “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.
If you deposit a counterfeit, the bank will initially credit your account because federal law requires funds availability within a set timeframe. When the fraud surfaces days or weeks later, the bank reverses the credit and pulls the money back. 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 the earlier availability. You bear the loss.
Which Location Fits Your Situation
- Post office: free for USPS money orders only, standard business hours. The default choice when you have a postal instrument.
- 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 issuer.
- Retail stores like Walmart and grocery chains: small flat fees, usually a few dollars, limited to partner brands.
- Check-cashing stores: percentage-based fees that add up quickly, most brands accepted, extended or 24-hour availability.
Between depositing at your bank and cashing at a check-cashing outlet, the bank wins on cost every time. The check-cashing store earns its fee only when you have no account, need cash after hours, or hold a brand nothing else nearby will take.