Learn About Money Order Cashing Options

What Money Orders Are and Why People Use Them

A money order is a paper document that works like a prepaid check. You go to a vendor, give them cash or a debit card, and they issue you a printed slip that shows the amount you've paid for. You can then give this slip to someone else, and they can cash it or deposit it like a regular check. The person receiving the money order knows the funds are already secured because you've already paid for it—unlike a personal check, which might bounce if there's not enough money in the account.

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Money orders serve several purposes in everyday financial life. People use them when they need to send money through the mail but don't want to send actual cash, which could get lost or stolen. Landlords sometimes require money orders instead of checks as proof of payment. If you don't have a bank account or prefer not to use checks, money orders offer an alternative way to pay bills or transfer money. Some people use them when paying contractors or service providers who they haven't worked with before, since there's a paper trail showing exactly what was paid and when.

The cost of getting a money order typically ranges from about 70 cents to $10, depending on the amount you're ordering and where you get it. Larger amounts usually cost more. The fees are generally quite small compared to the amount being transferred, making money orders relatively affordable for most situations. You'll pay the full amount you want on the money order plus the fee—so if you want a $500 money order and the fee is $2, you'll pay $502 total.

Understanding how money orders work is important because it affects where you can cash them and what information you'll need. Unlike checks, money orders don't require a bank account to cash. This makes them useful for people who are unbanked or underbanked, meaning they don't have traditional checking or savings accounts. However, the process of cashing a money order does vary depending on where you choose to go.

Practical takeaway: Money orders are prepaid instruments that provide security for both the sender and receiver. Before deciding whether to use a money order, consider whether you need a paper trail, whether the recipient can easily cash it, and whether the fee is worth it for your situation.

Where You Can Cash Money Orders

The most straightforward place to cash a money order is at a bank, particularly if you have an account there. Banks will cash money orders without charging you a fee if you're a customer, and they can often deposit the money directly into your account if you prefer. This takes just a few minutes at a teller window. If you don't have a bank account, many banks will still cash money orders for non-customers, though some may charge a small fee—typically $3 to $5. Call ahead to ask about the fee and whether you need to bring identification.

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Credit unions operate similarly to banks and often provide money order cashing services to members without a fee. If you belong to a credit union, this may be one of your cheapest options. Even non-members can sometimes cash money orders at credit unions, though again, there may be a small charge.

Retail chains and check-cashing services form another major category of places where you can cash money orders. Walmart, Target, and similar stores often have money services centers where you can cash money orders for a fee that usually ranges from $3 to $6, depending on the amount. Check-cashing stores—specialized businesses dedicated to cashing checks and money orders—are available in most communities and typically charge $3 to $10 per money order. These services don't require a bank account and are often open longer hours than banks, sometimes including evenings and weekends.

Convenience stores and pharmacies like 7-Eleven, CVS, and Walgreens sometimes offer money order cashing, though not all locations do. You may want to call ahead to confirm. Gas stations occasionally cash money orders as well, particularly in rural areas where other options may be limited. Grocery stores with customer service desks often provide this service too.

The post office will cash money orders that were issued by the postal service itself. If your money order came from USPS, you can take it to any post office location. The post office won't charge you a fee to cash your own money order. However, they won't cash money orders from other vendors like MoneyGram or Western Union.

Practical takeaway: Your cashing options depend on where the money order came from and what services are available in your area. If you have a bank account, start there for the lowest cost. If you don't, retail check-cashing services and stores like Walmart offer convenient alternatives, though they charge fees. Always call ahead if you're unsure whether a specific location offers the service.

Requirements and Information You'll Need

To cash a money order, you'll need to bring the physical document itself. The money order contains specific information that identifies it and proves it's legitimate. This includes the amount, the date it was issued, a serial number, and the name of the issuer (like Western Union, MoneyGram, or USPS). You cannot cash a money order without the original paper document—there's no way to do it online or by phone.

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You'll also need to bring a valid form of identification. A driver's license, state ID card, or passport works at nearly every location. Some places may accept other forms of ID like a military ID or tribal ID. If you don't have a government-issued ID, ask the location directly whether they accept alternative forms of identification. Some check-cashing services have more flexible policies than banks.

The money order will have spaces for the payee (the person receiving the money) and possibly the purchaser (the person who bought it). If the money order is made out to a specific person, it can only be cashed by that person—you cannot cash someone else's money order even if they give it to you, because you won't match the name. If the money order is blank or made out to "Cash," then anyone with the document can cash it, so it should be treated like actual currency and kept secure.

Some locations may ask about the source of the money order—basically, who gave it to you and why. This is part of standard anti-fraud procedures. You should be prepared to explain whether you received it as payment for work, as a refund, as part of a business transaction, or for another reason. You don't need to provide extensive documentation, just a straightforward explanation.

The amount matters for which locations will cash your money order. Most retailers have limits—they might not cash money orders above $1,000, for instance. Banks and credit unions typically don't have the same restrictions. If you have a very large money order, a bank is your most reliable option.

Practical takeaway: Bring the original money order and a valid ID to any cashing location. Make sure the money order has your name on it as the payee, or is made out to cash. If you're unsure whether a specific location will cash your particular money order, call first rather than making an unnecessary trip.

Understanding Fees and Cost Differences

The cost of cashing a money order varies significantly depending on where you go and how much money you're cashing. If you have a bank account at the institution where you're cashing it, you typically won't pay any fee at all. This is one major reason why people with bank accounts have an advantage—cashing a $500 money order at your own bank costs you nothing, while cashing the same amount at a check-cashing store might cost $5 to $10.

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For non-customers at banks, fees usually range from $2 to $8, with larger amounts sometimes charged at a higher rate. Credit unions may charge less, particularly if you have a family member who is a member and can add you to an account. Some credit unions have reciprocal agreements with other credit unions, meaning you can use services at different locations without the non-member fee.

Retail check-cashing services and specialty money order vendors charge the widest range of fees. Western Union and MoneyGram, which are businesses that issue money orders, typically charge $2 to $10 depending on the amount. Walmart's MoneyCenter charges around $3 for amounts up to $500 and slightly more for larger amounts. Independent check-cashing stores vary widely—some charge flat fees while others charge a percentage of the amount being cashed (usually 1-3% of the total).

Convenience stores and grocery stores generally charge less than specialty check-cashing services—usually $1 to $3