Yes, most banks will cash a money order at the teller window

You can walk into your bank with a money order and cash it the same way you would a check. The teller will verify the money order is legitimate, confirm you are the payee (the person it is made out to), and give you cash or deposit it into your account. The process usually takes a few minutes if you have your ID and the money order is filled out correctly.

Banks treat money orders as negotiable instruments—essentially a may provide payment—so they are willing to cash them on the spot. You do not need to be a customer of that bank to cash a money order there, though some banks may impose a small fee for non-customers, typically $5 to $10. Call ahead if you want to confirm the fee before you go in.

Key Takeaways

  • Bring your ID and the money order to any bank teller window; most banks cash them without requiring you to be a customer.
  • The money order must be made out to you by name, and you will need to sign the back if you have not already.
  • Non-customers may pay a small fee ($5 to $10), so call your bank first if you do not have an account there.
  • If the money order is damaged, altered, or missing information, the bank may refuse to cash it and you will need to contact the issuer for a replacement.
  • Cashing usually takes a few minutes, but some banks may place a hold on the funds if the amount is very large or the money order is from an unfamiliar issuer.

What the teller will check before handing over cash

The teller will look at four things: whether the money order is filled out completely, whether it has been signed by the person who bought it, whether you are the correct payee, and whether the money order appears genuine. A complete money order has the amount in both numbers and words, the payee name, the date, and the issuer's name (like Western Union, MoneyGram, or your bank).

You will need to sign the back of the money order in front of the teller if you have not already. This is your endorsement—it proves you are authorizing the bank to cash it on your behalf. If the money order is made out to someone else, the bank will not cash it, even if that person gives you permission. The payee name must match your ID exactly.

If the money order looks altered, torn, or faded in a way that makes the amount or issuer unclear, the teller will refuse it. In that case, you will need to contact the issuer (the company that sold the money order) with your receipt to request a replacement. This process can take one to two weeks.

Money orders from different issuers and how banks treat them

The most common issuers are Western Union, MoneyGram, and your own bank. Banks cash money orders from all three without hesitation. You may also encounter money orders from the U.S. Postal Service, grocery store chains like Walmart or Kroger, or smaller check-cashing services. Banks will cash these too, though the teller may take slightly longer to verify them if the issuer is less familiar.

International money orders—those issued outside the United States—are more complicated. Most banks will not cash them at the teller window. You may need to deposit them into your account and wait for them to clear, which can take two to four weeks, or the bank may refuse them altogether. If you receive an international money order, ask your bank about their policy before you go in.

When a bank might hold the funds or refuse to cash

If the money order is for a very large amount—typically over $5,000—the bank may place a hold on the funds for one to five business days while they verify it is not counterfeit or stolen. This is a federal requirement called verification of funds. You will still get the cash or deposit, but not when ready.

A bank will refuse to cash a money order if it is post-dated (dated for a future date), if it has been altered, if the signature or payee name is missing, or if it appears to be counterfeit. If you suspect a money order is counterfeit—for example, if someone gave it to you as payment and it looks suspicious—do not try to cash it. Report it to the issuer and to your local police. Attempting to cash a counterfeit money order can result in criminal charges.

Depositing instead of cashing

You do not have to cash a money order for cash. You can deposit it into your bank account instead, and the funds will be available within one to three business days. Depositing is often faster than cashing if you do not need the physical cash, and you avoid any non-customer fees.

If you deposit a money order, you will endorse it the same way—sign the back—and hand it to the teller or use your bank's mobile app if they offer mobile deposit. Mobile deposit is usually the fastest option; you photograph the front and back of the money order, and the funds post to your account within 24 hours in most cases.

What to do if your bank refuses the money order

If your bank will not cash or deposit the money order, your next option is a check-cashing service. These businesses cash money orders for a fee, usually 1 to 3 percent of the amount. For a $500 money order, that is $5 to $15. Check-cashing services are more lenient about verification and will often cash money orders that banks refuse, including some international ones.

You can also contact the issuer directly. If the money order is from Western Union or MoneyGram, you can go to one of their retail locations (Western Union is at many grocery stores and pharmacies; MoneyGram is at Walmart and other retailers) and cash it there. Bring your ID and the money order. This route bypasses the bank entirely and usually takes just a few minutes.

Frequently Asked Questions

Do I have to be a customer of the bank to cash a money order there?

No. Any bank will cash a money order for anyone who presents a valid ID and the money order is made out to them. Some banks charge non-customers a small fee ($5 to $10), so call ahead if you want to avoid the charge.

What if I lost the receipt for the money order?

You do not need the receipt to cash a money order at a bank. The receipt is only necessary if the money order is lost or stolen and you need to request a replacement from the issuer. If you have the physical money order in hand, the bank will cash it.

Can I cash a money order if someone else bought it but made it out to me?

Yes. As long as the money order is made out to your name and you have a valid ID that matches, the bank will cash it. Who bought the money order does not matter.

How long does it take to cash a money order at a bank?

Usually a few minutes. The teller will verify it, you will sign the back, and you will receive cash or a deposit confirmation. For very large amounts (over $5,000), the bank may place a hold of one to five business days while they verify it is legitimate.

What if the money order is damaged or torn?

If it is slightly damaged but still readable, the bank may cash it. If it is badly damaged or the amount or issuer name is unclear, the bank will refuse it. Contact the issuer with your receipt to request a replacement, which usually takes one to two weeks.