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- A money order is a method of sending money that's more secure than a personal check or cash.
- To cash a money order, verify its authenticity and find a bank, credit union, or check-cashing store.
- Bring photo ID when you cash a money order, and expect to pay a fee in most cases.
If you're receiving a payment from someone you don't know — especially through the mail — you might want to consider a money order instead of a personal check or cash payment.
"A money order is a method of sending a prepaid amount of money to somebody," explains Chane Steiner, CEO of Crediful. "It's considered very secure and is an excellent way to send money quickly in situations where a personal check is not appropriate. In some instances, money orders are even preferred to cash in hand."
Here's how to cash a money order quickly and securely.
Preparing to cash a money order
The first thing to do when you receive a money order is to review the document and make sure the money order was filled out correctly. Double-check its value to make sure the amount is correct; money orders are prepaid, so you should know in advance how much you're receiving. Also, make sure the name on the money order matches the name on your ID.
You'll also want to verify that the money order is legitimate. If you know the sender, this might not be a concern, but if you aren't familiar with the person sending it — maybe you sold an item on Facebook Marketplace, for example — you'll want to confirm the amount is what it's supposed to be.
Where to cash a money order
Banks and credit unions
Going directly to the issuer is also a way to verify the money order. If you're cashing with a bank or credit unionwhere you're an account holder, you should be able to avoid fees.
Grocery stores and check-cashing businesses
Many retail locations have a money-transfer outlet like Moneygram or Western Union counter to make the process convenient.
If you go directly to the place that issued your money order — that could be a place like Western Union, Moneygram, or Walmart — you might be able to minimize your fees.
Postal services for postal money orders
Many consumers send money orders from the United States Post Office, and a local post office will cash USPS money orders. If you receive a USPS money order, you can cash it for free.
Steps to cash a money order
Plan to cash your money order in a timely fashion
The longer you hold on to the money order, there's a chance it can be lost, damaged, or misplaced.
Plus, cashing a money order quickly is a way to protect yourself against possible fraud, since the sender can cancel their money order. If you've already cashed it with the issuer, the sender won't be able to cancel.
Present valid identification
You will need to provide a photo ID, such as a driver's license, passport, or other government-issued ID, to cash a money order.
Endorse the money order
Don't sign the money order in advance; add a signature to the back of the money order when you are at the counter in front of a bank teller or other customer service representative.
"Sign your money order only once you are handing it over to be cashed. Signing it beforehand can be risky if it is stolen," says Steiner.
Pay associated fees
Fees vary by financial institution or retailer. If you're worried about overpaying, call and ask about fees before you go. Some banks also have a Schedule of Fees online, which is a document with all common bank fees.
Receive your cash
Count the money that you receive, and make sure to save your receipt. Put the cash away securely before leaving the location.
Tips for safely cashing a money order
Avoiding scams and fraudulent money orders
The easiest way to avoid a money order scam is to call the money order issuer, or visit its website, to verify the funds. Every money order includes a serial number for verification.
For Postal Service money orders, visit this webpage to learn more about how to spot a fake.
What to do if a money order is lost or stolen
If you need to cancel a money order because it was lost or stolen, contact the issuer immediately. You will likely be asked to fill out a request form and pay a cancelation fee.
Postal money orders cannot be canceled, but they can be replaced for a fee of $18. It may take up to 60 days.
Cashing a money order FAQs
Can any bank cash a money order?
The best banks will cash money orders for free for customers. Non-customers may have to pay a fee.
What do I need to cash a money order?
You will need a valid photo ID to cash a money order.
Is there a fee to cash a money order?
Retail and check-cashing stores usually charge a fee to cash a money order. You can avoid this fee by visiting your bank or credit union instead.
Can I cash a money order issued by the Postal Service at a bank?
A bank where you are not a customer may charge a fee to cash a Postal Service money order. The Post Office will cash it for free if you present a valid photo ID.
What should I do if I suspect a money order is fake?
Alert your bank and the money order issuer, and do not attempt to cash it.
Erica Lamberg is a business, travel and personal finance writer based in suburban Philadelphia. She has extensive experience covering business for media outlets including NBC News, Gannett and Ladders and has travel writing credits for Fodor’s Travel, US News & World Report, Cruise Critic, Oprah Magazine and many more. For Business Insider, her contributions will focus on money, travel, commerce and other sectors. In addition, Erica writes about health, personal relationships and self-improvement for outlets including Goalcast, Reader’s Digest and Parents Magazine. Erica is a graduate of the University of Maryland at College Park. Erica’s interests include spending time with her family, traveling, doting on her yellow Labrador retriever, Chloe and binging Netflix documentaries. She is married and is the proud mother of a daughter and a son. Follow Erica on Twitter @Elambergwriter.
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