Most banks will cash a money order, but not all, and the rules vary by bank and the money order's issuer

Whether your bank will cash a money order depends on three things: whether you have an account there, whether the money order is from a major issuer, and the bank's own policy. Most large banks and credit unions will cash a money order if you're a customer, often for free or for a small fee. Some banks will cash them even if you don't have an account, though they may charge more or ask for ID. The safest approach is to call your bank's customer service line and ask directly—policies change, and what worked last month may not work this month.

Money orders from major issuers like MoneyGram and Western Union are easier to cash than obscure ones. A money order from a small regional company or a business you don't recognize may be turned down, even at a bank that normally cashes them. The bank's concern is whether they can verify the money order is real and whether they can get their money back if it turns out to be fraudulent.

Key Takeaways

  • Call your bank before you go in—ask whether they cash money orders, whether you need an account, and what fee they charge.
  • Money orders from MoneyGram and Western Union are cashed by most banks; money orders from unfamiliar issuers may be refused.
  • You will need to bring the money order itself, a valid ID, and your account number if you're a customer.
  • If your bank won't cash it, the issuer's website usually has a locator tool to find nearby places that will.
  • Cashing a money order at the issuer (MoneyGram at Walmart, Western Union at a dedicated location) is often faster than a bank and may cost less.

What you need to bring to the bank

Bring the money order itself, a valid government-issued ID (driver's license, passport, or state ID card), and your bank account number if you have one. The teller will ask you to sign the back of the money order in front of them—do not sign it before you arrive. If the money order is made out to someone else and they're not with you, the bank will likely refuse to cash it unless that person has already signed it over to you in writing on the back.

If you're cashing a money order at a bank where you don't have an account, bring extra ID if you have it. Some banks ask for a second form of ID or a phone number to verify. The process takes a few minutes, but you may wait in line depending on how busy the branch is.

Banks that typically cash money orders

Large national banks like Bank of America, Chase, Wells Fargo, and Citibank cash money orders for their customers, usually for free or for $1 to $3. Credit unions often do the same. Community banks vary—some cash them freely, others charge a fee or refuse them altogether. The best way to know is to ask your specific branch.

If you don't have an account at a bank, try a credit union in your area. Credit unions are often more flexible about cashing money orders for non-members, though they may charge $5 to $10. Some grocery store customer service desks and check-cashing businesses also cash money orders, sometimes for less than a bank charges.

What happens if your bank says no

If your bank won't cash the money order, go to the issuer directly. MoneyGram has locations at Walmart, grocery stores, and pharmacies. Western Union has dedicated locations and also operates through some grocery stores and check-cashing shops. You can find the nearest location on their websites by entering your zip code. Cashing at the issuer usually takes 10 to 15 minutes and costs $1 to $5, depending on the amount.

A check-cashing business is another option, though fees are typically higher than a bank—often 1 to 3 percent of the money order's value. If the money order is for $500, you might pay $5 to $15. Ask the fee upfront before you hand over the money order.

Why some banks refuse money orders

Banks refuse money orders for two reasons: fraud prevention and cost. A money order can be counterfeit, altered, or stolen, and if the bank cashes it and later discovers the problem, the bank loses the money. Smaller or regional money order issuers are riskier because the bank may not have a quick way to verify them. Larger issuers like MoneyGram and Western Union have systems banks trust.

Some banks also refuse money orders straightforward because they don't want to handle them—the fee they charge doesn't cover the teller's time and the risk. This is more common at very large banks with high transaction volumes. Smaller banks and credit unions are often more willing because they have fewer transactions to process and value customer relationships more.

Money orders from your own bank

If the money order was issued by your bank, they will almost certainly cash it. Walk into any branch with your ID and the money order. There should be no fee, and it should take just a few minutes. If you ordered the money order from that bank and it's still uncashed, you can also ask the teller to cancel it and refund your money—though some banks charge a small fee for cancellation.

Your bank keeps a record of money orders it issued, so verification is when ready. This is one of the fastest and cheapest ways to cash a money order, which is why having a relationship with a bank matters for these transactions.

Frequently Asked Questions

Can I cash a money order at an ATM?

No. ATMs only dispense cash and accept deposits to accounts. You must go to a teller or customer service desk inside the bank to cash a money order. Some banks let you deposit a money order into your account through an ATM, but that's different from cashing it.

What if the money order is made out to my business, not me personally?

You'll need to bring the money order, your business ID or registration documents, and a personal ID. Some banks require the business owner to be present. Call ahead to ask what your bank needs—policies vary widely for business money orders.

Can I cash a money order if it's damaged or torn?

It depends on the damage. A small tear or water stain usually won't matter. If the amount is illegible, the issuer's name is damaged, or the security features are compromised, the bank may refuse it. Contact the issuer's customer service to ask whether they'll replace it.

How long does it take for a cashed money order to clear?

If you're cashing it (getting cash), it clears when ready—you walk out with the money. If you're depositing it into your account, it usually clears within one to three business days, depending on your bank's policy.

What if the money order is expired?

Money orders don't expire in the traditional sense, but some issuers stop honoring them after a certain period (often three to five years). Contact the issuer to ask whether yours is still valid. If it is, most banks will still cash it.