Yes, you can cash a money order at your bank, but not every bank will do it the same way
Most banks will cash a money order if you have an account with them. Some will also cash one even if you don't have an account, though they may charge a fee or require you to deposit it instead of taking cash. The process is straightforward: you sign the back of the money order, hand it to a teller, and they verify it before giving you the money or depositing it into your account.
The speed depends on the money order's issuer. A money order from your own bank usually clears the same day. One from a different bank or from a retailer like Walmart or Western Union may take one to three business days to clear, even though you hand it over in person. This delay exists because the bank has to confirm the money order is real and that the issuing company actually has the funds behind it.
Key Takeaways
- Banks that issue money orders will almost always cash them for account holders on the spot, but banks that didn't issue the money order may take one to three business days to clear it.
- You will need to sign the back of the money order in front of the teller, and bring a photo ID.
- Some banks charge a fee to cash a money order from another issuer, while others do it free for account holders.
- If you don't have a bank account, check whether your bank allows non-customers to cash money orders, as policies vary widely.
What happens when you bring a money order to the teller
The teller will ask you to sign the back of the money order in their presence. This signature proves you are the person the money order was made out to. They will then scan or photograph the money order and run it through their system to verify it is legitimate and that the funds are available.
If the money order is from the same bank, this verification usually takes seconds and you walk out with cash or a deposit receipt the same day. If it is from a different bank or issuer, the teller will tell you how long it will take to clear — typically one to three business days. During this time, the money is held while the issuing bank confirms the money order is real.
Cashing a money order without a bank account
Some banks will cash a money order for someone without an account, but many will not. Those that do often charge a fee ranging from a few dollars to a percentage of the money order's value. A few banks offer this service free to non-customers, but this is less common.
Before you go to the bank, call ahead and ask whether they cash money orders for non-account holders and what they charge. If your bank says no, you have other options: the issuing company (Western Union, MoneyGram, or your local bank if they issued it) will usually cash it, and some check-cashing services and retailers will as well, though they typically charge a higher fee than a bank would.
Why some banks charge fees and others don't
Banks charge fees for cashing money orders from other issuers because they take on a small risk while waiting for the money to clear. They have to hold the cash in their vault and verify the money order is real, which costs them time and resources. Banks that issued the money order themselves have no such risk, so they rarely charge account holders to cash them.
If you are a regular customer, it is worth asking whether the bank will waive the fee. Some will, especially if you maintain a minimum balance or have direct deposit set up. Others have a flat policy. Knowing the fee in advance helps you decide whether to cash it at the bank or take it to the issuer instead.
Money orders from different issuers and how long they take
The issuer's name appears on the front of the money order. Common issuers include Western Union, MoneyGram, your bank, the U.S. Postal Service, and Walmart. Each has its own clearing time, though most banks treat them similarly once they arrive at the teller window.
A money order from your bank clears the fastest because the bank already knows it is real — they issued it themselves. A money order from Western Union or MoneyGram may take longer because your bank has to contact those companies to verify the funds. A postal money order goes through the postal service's banking partner, which adds another step. In practice, most non-bank money orders clear within one to three business days, but some banks may take longer.
What to bring when you cash a money order at your bank
Bring the money order itself and a photo ID. The ID must be current and show your name and face — a driver's license, passport, or state ID card all work. The teller will check that your name matches the name on the money order.
If the money order was made out to someone else and they signed it over to you, bring that person's ID as well. Some banks will not accept signed-over money orders at all, so call ahead if this is your situation. If you are depositing the money order instead of cashing it, you may not need to sign it in front of the teller, but policies vary — ask when you arrive.
What to do if the money order is lost or damaged
If the money order is damaged but still readable, most banks will still cash it. If it is torn, faded, or partially illegible, the teller may refuse it or send it to the issuer for verification, which adds time.
If the money order is lost, you cannot cash it at a bank. Instead, contact the issuer directly — Western Union, MoneyGram, your bank, or the post office — and ask about a refund or replacement. You will need the receipt or confirmation number from when the money order was purchased. The issuer will verify that the money order has not been cashed and can issue you a new one or refund the money.
Frequently Asked Questions
Can I cash a money order at a different bank than the one that issued it?
Yes, but it may take longer and cost more. If you don't have an account at the bank where you want to cash it, they may charge a fee or refuse to cash it for you. Your best option is to cash it at the bank that issued it, or contact the issuer directly.
What if the money order is made out to the wrong name?
Do not sign it. A money order made out to the wrong person cannot be cashed by anyone else, even if they sign it. Contact the person who purchased it and ask them to get a refund from the issuer and buy a new one with the correct name.
Do I have to deposit the money order or can I get cash?
You can choose either one. Tell the teller whether you want cash or a deposit into your account. If you don't have an account, you will have to take cash, though some banks may require you to open an account to deposit it.
How do I know if a money order is real before I go to the bank?
Check that it has a serial number, a watermark, and the issuer's name printed clearly on it. Real money orders from major issuers like Western Union and MoneyGram have security features that are hard to fake. If something looks off or the money order feels flimsy, ask the issuer or your bank before trying to cash it.
Can I cash a money order online or by mail?
No. You must bring the money order to a bank, the issuer, or another location in person. The teller needs to see you sign it and verify your ID. Some banks may allow you to deposit a money order by mail, but you cannot cash it that way.