You're standing there holding a slip of paper that’s basically a check, but not quite. Maybe you sold a couch on Facebook Marketplace or your landlord doesn't trust digital transfers. Now you’re wondering, can you cash a money order right now, or are you going to have to jump through ten hoops just to get your hands on the paper bills?
The short answer is yes. Obviously. But the "how" and "where" can get surprisingly annoying if you don't play your cards right.
I’ve seen people walk into their local grocery store thinking they’re about to walk out with five hundred bucks, only to be told the service desk doesn't have enough cash on hand. Or worse, they realize they forgot their ID. It happens all the time. Money orders are weirdly old-school, yet they remain a staple of the American financial system because they don’t bounce like personal checks do. They are prepaid. The money is already there, sitting in some corporate or government account, waiting for you to claim it.
The Best Places to Cash Your Money Order
Where you go depends entirely on who issued the thing. If you’ve got a Western Union money order, your best bet—bar none—is a Western Union location. Same goes for MoneyGram.
But if you have a USPS Money Order? Go to the Post Office.
Seriously. The United States Postal Service issues millions of these. If you take a USPS money order to a random bank where you don't have an account, they might give you a side-eye or charge you a fee that eats into your lunch money. At the Post Office, they’ll usually cash it for free, provided they have the cash in the drawer. Sometimes, if it's a large amount, like $1,000, you might want to call ahead. A tiny rural post office isn't always carrying a massive stack of twenties.
Banks are the second obvious choice. If you have a checking or savings account at a place like Chase, Wells Fargo, or a local credit union, they’ll usually take it. They might not technically "cash" it in the sense of handing you bills immediately; often, they’ll want you to deposit it and wait a day for it to clear. This is their way of protecting themselves against fraud. Even though money orders are "guaranteed," fake ones circulate constantly.
Check-cashing stores are the "in a pinch" option. Places like PLS or Money Mart will almost certainly say yes, but they’re going to take a bite out of your total. It’s the price of convenience. You’re paying for the fact that they stay open late and don't care if you have a bank account or not.
What You Absolutely Need to Bring
Don't just walk in empty-handed. You need a government-issued photo ID. No exceptions.
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Your driver’s license, a passport, or a military ID will work. If you try to show them a Costco card or a student ID from ten years ago, you’re going to leave disappointed. The teller has to verify that you are the person named on the "Pay To" line.
Speaking of that line, do not sign the back yet. Wait until you are standing at the counter in front of the teller. If you sign it beforehand and then lose it on the way to the store, anyone who finds it could theoretically try to cash it. It’s like a blank check at that point. Most tellers will actually insist on watching you sign the back of it to ensure the signature matches your ID.
Fees and Limits You Should Know About
Nothing is free, except maybe cashing a USPS money order at the Post Office.
- Retailers: Grocery stores like Kroger, Meijer, or Publix often cash money orders at their service desks. They usually charge a flat fee or a small percentage. It’s often under $5, but it varies by state.
- Walmart: They are a huge player in this space. They cash MoneyGram money orders and their own "MaxMoney" ones. Their fees are usually around $4 for amounts up to $1,000.
- Banks: If you aren't a customer, a bank might charge you a flat $10 fee, or they might just flat-out refuse. It’s getting harder to walk into a bank where you don't belong and get service.
Why People Think You Can’t Cash Them (The Red Flags)
Sometimes, you’ll get a "no." It’s frustrating.
The biggest reason a clerk will refuse to cash a money order is if it looks tampered with. If there are any smudges on the name, white-out, or if the ink looks "off," they won't touch it. Security features on these things are surprisingly high-tech. USPS ones have a watermark of Benjamin Franklin that you can see when you hold it up to the light. If that watermark isn't there, it’s a fake.
Another issue is the "Pay To" line. If the sender left it blank and told you to "just fill it in," be careful. If your handwriting doesn't look natural or if it looks like the name was changed, the teller will flag it as suspicious.
There's also the issue of liquidity. Banks and stores have limits on how much cash they keep in the till. If you show up at a gas station with a $700 Western Union money order, they simply might not have the cash to give you. They have to keep enough back to make change for other customers.
Dealing with International Money Orders
If someone sent you a money order from another country, things get complicated. Fast.
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Most "domestic" money orders are only good in the country they were issued. If you have an international one, you almost certainly have to go to a major bank. Even then, they might send it off for "collection," which means you won't see that money for weeks. If you’re in the U.S. and someone sends you a money order from overseas, double-check that it’s an International Postal Money Order. Those are pinkish-orange and are generally easier to handle at a USPS branch.
What Most People Get Wrong About the Process
A common myth is that you can just ATM-deposit a money order like a regular check.
Can you? Technically, yes, many ATMs will take them. Should you? Probably not if you need the money today.
When you put a money order into an ATM, the machine’s computer reads it, but a human often has to verify it later because the OCR (optical character recognition) on money orders is notoriously finicky. This can trigger a "hold" on your account. I’ve seen people have their entire bank account frozen for 48 hours because the ATM couldn't verify a $200 money order. It’s way better to hand it to a human teller who can hit the "clear" button right then and there.
Another misconception is that money orders never expire. While the funds don't technically disappear, many issuers start charging "service fees" if the money order isn't cashed within one to three years. If you find an old money order in a drawer from 2021, it might have lost half its value to monthly maintenance fees that were deducted automatically.
The Fraud Problem
You have to be careful. Money order scams are the oldest trick in the book.
If someone sends you a money order for more than what you sold an item for and asks you to "wire back the difference," stop. It’s a scam. The money order is fake. You’ll cash it, your bank will give you the funds as a "courtesy," you’ll wire the extra money to the scammer, and then a week later, the bank will realize the money order was counterfeit. They will suck that money back out of your account, and you’ll be on the hook for the full amount.
Real money orders feel like slightly grainy paper. They have security threads. They have specific serial numbers. If you’re unsure, you can actually call the issuer. Both Western Union and the USPS have automated lines where you can plug in the serial number to see if the money order is valid.
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Steps to Take Right Now
If you're sitting there with a money order in your hand, here is exactly what you should do to ensure you get your cash without a fight.
First, look at the brand. Is it Western Union, MoneyGram, or USPS? This dictates your destination. If it's a grocery store brand, look at the back to see who actually processes it.
Next, grab your ID. Make sure it isn't expired.
Drive to the corresponding location. If it's a USPS money order, go to the Post Office. If it's anything else and you have a bank account, go to your bank. If you don't have a bank account, head to a large grocery chain like Walmart or Kroger.
When you get to the counter, ask the clerk: "Do you have enough cash on hand to cash a money order for [Your Amount]?" This saves you from waiting in line only to be told they can't help you.
Once they say yes, sign the back, hand over your ID, and pay the fee.
Pro Tip: Always keep the "Customer Receipt" stub that you tore off the side or top of the money order. If the store loses the money order or something goes wrong during the transaction, that stub is your only proof that the money existed. Without it, you’re basically out of luck if the document gets lost or stolen.
Wait for the teller to count out the bills. Count them yourself before you leave the window. It’s basic, but people forget when they're in a rush.
If you find yourself frequently using money orders, it might be worth looking into a basic "second chance" bank account. Cashing these things every month is a massive time sink and the fees really do add up over a year. But for a one-off payment, just follow the rules, keep your receipt, and you’ll be fine.