Banks do issue money orders, but not all of them, and the process is slower than other places

Most banks will sell you a money order if you ask, but it is rarely the fastest or cheapest option. A bank money order typically costs between $5 and $10 per order, takes one to three business days to process, and requires you to have an account there. You hand over cash or use funds from your account, the bank prints the money order, and you walk out with a document that functions like a certified check — the bank guarantees the funds are there.

The catch is timing. If you need a money order today, a bank is often the wrong choice. Post offices, grocery stores, and convenience stores sell them on the spot for $1 to $3 each. Banks are useful if you already have a relationship there, prefer the security of a bank-issued document, or need a large money order — banks typically issue them up to $1,000 or higher, while retail locations often cap out at $500 to $1,000.

Key Takeaways

  • Banks issue money orders for $5 to $10 each, but require an account and take one to three business days.
  • Post offices, grocery stores, and convenience stores sell money orders on the spot for $1 to $3, making them faster for urgent needs.
  • Bank money orders work best when you need a large amount, want a bank-may provide document, or already have an account open.
  • You can buy a money order with cash or from your account balance, but the bank will verify your identity before issuing one.

How the bank money order process works

When you walk into a bank branch and ask for a money order, you will need to provide the payee's name (the person or business receiving the money), the amount, and your ID. The teller will enter this information into the system, print the money order, and you will sign it. Some banks require you to have an account; others will sell one to non-customers for a higher fee.

The money order itself is a piece of paper with a serial number, the bank's name, the payee, the amount, and a security feature to prevent forgery. You hand it to the recipient, who deposits or cashes it at their own bank. The receiving bank then contacts your bank to confirm the funds exist. This verification step is why bank money orders take longer than retail ones — the process involves two institutions.

If you pay with cash, the bank takes the cash and issues the money order. If you pay from your account, the funds are deducted when ready. Either way, once the money order is issued, the money is committed — you cannot cancel it without going back to the bank and paying a fee, usually $15 to $25.

When a bank money order makes sense versus other sources

Choose a bank money order if you need an amount over $1,000, because most retail locations will not issue them that large. Banks also make sense if you are sending money to another country or need a document that carries the bank's may provide — some landlords or businesses specifically request bank-issued money orders because they are harder to counterfeit than retail ones.

Choose a post office, grocery store, or convenience store if you need the money order today. These locations issue them when ready, charge less, and do not require an account. The trade-off is that retail money orders have lower limits — usually $500 to $1,000 — and some require you to have a checking account or ID to prevent fraud.

If you are sending money to someone you trust and speed matters more than the issuer's name, retail is almost always the right choice. If you are sending a large amount, need the bank's name on the document for credibility, or are already at the bank for another reason, go with the bank.

What you need to bring to get a bank money order

Bring a valid ID — a driver's license, passport, or state ID card. The bank will scan or copy it to verify your identity and prevent fraud. Bring the exact amount in cash, or have funds in your account if you are a customer. Bring the payee's name spelled correctly — money orders cannot be changed once issued, so if you misspell the recipient's name, the money order becomes difficult or impossible to cash.

If you do not know the exact amount, ask the payee before you go to the bank. Some banks will issue a money order for a round amount and refund the difference in cash, but this varies by institution. Call your bank ahead of time if you are unsure about their policy or if you are not a customer — some banks have stopped issuing money orders to non-account holders, or charge significantly more for them.

Bank money order fees and limits

Bank fees range from $5 to $10 per money order, though some banks charge less for account holders. A few banks include one information programs order per month or per year as part of a checking account package, so check your account benefits before paying. Limits vary — most banks issue up to $1,000 per money order, but some go higher. A few banks cap them at $500.

Compare this to post office money orders, which cost $1.45 to $2.00 and have a $1,000 limit, or grocery store money orders, which often cost $0.99 to $2.00 with limits between $500 and $1,000. The bank's higher fee is the price of the bank's may provide and the account relationship — if you do not need either, you are paying extra.

Why some banks have stopped issuing money orders

A growing number of banks have discontinued money orders entirely, especially smaller regional banks. The reason is straightforward: money orders are labor-intensive, require verification steps, and generate very little profit. A $10 fee on a money order that takes a teller five minutes to process is not worth the operational cost to the bank.

If your bank has stopped issuing them, you have not lost access — you just need to go elsewhere. The post office remains the most reliable source nationwide. Walmart, grocery chains like Kroger and Safeway, and convenience stores like 7-Eleven and Circle K all issue them. Some credit unions still issue money orders, so if you are a member, ask before going to a retail location.

Frequently Asked Questions

Can I get a money order from my bank if I do not have an account there?

Some banks will issue one to non-customers, but they charge a higher fee — often $10 to $15 instead of $5 to $10. Call ahead to confirm your bank's policy. If they refuse, the post office will issue one to anyone with a valid ID for $1.45 to $2.00.

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

The recipient can deposit or cash it at their bank when ready, just like a check. The receiving bank may hold the funds for one to three business days before releasing them, depending on the bank's policy. This is the same hold period as a personal check.

What happens if I lose a bank money order before I give it to someone?

Contact your bank when ready with the serial number. The bank can issue a replacement, but you will pay a fee — usually $15 to $25 — and the process takes several days. This is why it is safer to hand the money order directly to the recipient or mail it promptly.

Can I cancel a bank money order and get my money back?

Yes, but only through the bank that issued it, and you will pay a cancellation fee of $15 to $25. You will need the serial number and proof of purchase. The bank will verify that the money order has not been cashed before refunding your money minus the fee.

Is a bank money order safer than cash?

Yes. Cash can be lost or stolen and is gone forever. A money order is a document tied to a serial number — if it is lost or stolen, you can report it and get a replacement. The recipient cannot cash it without the correct endorsement, making it safer for mailing.