How to Cash a Money Order?

money on the table

Debit cards, credit cards, e-payment, wire transfers, and bank transfers are common payment options for individuals looking to make payments to a third party. But there are also money orders. This payment option is secure and, unlike other payment options, doesn’t require you to have a bank account. What you need to know is how to buy the money order and cash it.

To cash a money order, you’ll need to do the following things:

  • Take your money order to a location that’ll cash it
  • Endorse your money order
  • Verify your identity
  • Pay service fees
  • Receive your money

So you want to try out a money order, but do you know how it works? Can you cash one? Of course, a money order is similar to a check, but they are cashed differently. Below, I shed some light on what a money order is, how to cash a money order, and where to cash a money order.

Money Order vs Cashier’s Check

How to Cash a Money Order?

Ever heard of money orders but aren’t sure of what they are or when they are used? If so, you are in the right place. Let’s begin by understanding what a money order is.

A money order is a secure payment method used for sending a prepaid amount. Money orders are a trusted way to transfer cash, especially when a paper check won’t be enough or isn’t available.

You may need to use a money order for a rental security deposit, a used car purchase, or for sending money internationally or via the mail. Because money orders are guaranteed, a recipient may prefer this type of payment method to a check.

Fortunately, money orders are an easy and affordable way to send guaranteed money to a third party of your choice. So, if you are thinking about how to cash a money order, we have provided you with a step-to-step guide below.

After getting your cash, you can decide to deposit it into your bank account or use the funds for what you need. Consider unloading your cash as soon as you can so you aren’t not carrying around a big sum of money.

  1. Bring your money order to a location that will cash it: You can take the money order to financial institutions like your bank or credit union. Grocery stores and some retail stores are also added to this list.
  2. Endorse your money order: Wait to include your signature on the back of the money order until you are ready to give it to the cashier. Then, sign the back of the order to endorse it.
  3. Verify your identity: Show your identification to prove that you are authorized to cash the money order. Government-issued IDs like passports, driver’s licenses, and military cards are all original forms.
  4. Pay service fees: You may have to pay a fee to cash a money order, although the fees aren’t much compared to a cashier’s check. The fees will be removed from the total amount of cash you receive.
  5. Receive your money: Keep your cash safe before leaving the service counter. You can secure your money in a bag, wallet, or money belt. You may wish to alert the sender that you have successfully received the money.

What Is a Money Order?

Where to Cash a Money Order?

Cashing a money order is very easy, as there are many institutions that offer this service. Depending on where you stay and the places you often visit, some of the options below may suit you more than the others.

Bank: Of course, this list would be incomplete without adding “banks.” You can cash your money order at a bank where you already have an account so that you can securely deposit the funds immediately.

Credit union: Similar to a bank, you can cash money orders at credit unions. Of course, this is possible if you have a credit union account.

Money transfer outlet: Many locations, like Western Union and MoneyGram, deal in money orders. They usually provide quick services with good fees.

Post office: Wondering how to cash a postal money order? The post office is your best bet! This facility securely handles money orders and is the most convenient place to cash USPS money orders. You can also send out a package or buy postage stamps while there.

Grocery store: You can cash a money order in a grocery store. However, not all grocery stores allow you to cash a money order. Visit their customer service counter to ask if they process money orders, helping you avoid different errands if you are out shopping.

Check-cashing location: Stores that cash checks, whether they are your paycheck or a simple payment from a family member, often provide money order services.

Convenience store: Not all convenience stores provide a spot to cash money orders. Contact their customer service beforehand or go to their website before visiting them.

Money order issuer: Look at the entity that issued your money order. You’ll be able to cash it at a store that uses the same company, like Western Union, for instance.

Retail store: Some retailers will cash money orders. Contact their customer service or visit their service counter to find out.

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