How to turn a money order into cash or bank funds

A money order becomes usable money when you either cash it at a bank, check-cashing service, or post office, or when you deposit it into a bank account. The method depends on where you have an account, whether you need cash immediately, and what fees you want to avoid. Most money orders can be cashed within minutes at a bank or post office if you have the original document and a valid ID.

The payee name on the money order must match your name exactly. If someone else's name is on it, you cannot cash it — the person named must either cash it themselves or sign the back and write your name, though this creates complications with some institutions. Always keep the receipt stub until the money order clears, in case there is a dispute about whether it was received.

Key Takeaways

  • Banks, credit unions, and post offices will cash money orders for the person named on the front, usually for free or a small fee.
  • Check-cashing stores and grocery stores with money services will cash money orders same-day but typically charge a fee of $1 to $5.
  • Depositing a money order into your bank account takes one to three business days to clear, but avoids the need to carry cash.
  • You need the original money order document and a valid photo ID to cash it anywhere.
  • If the payee name does not match your name exactly, the issuer or the person named must endorse it to you in writing.

Cashing at a bank or credit union

Your own bank or credit union will usually cash a money order for free if you have an account there. Walk in with the money order, your account card or ID, and ask to cash it. The teller will verify the amount, check that your name matches the payee line, and hand you cash or add the funds to your account on the spot. This takes five to ten minutes.

If you do not have an account at that bank, many will still cash it for a small fee — typically $1 to $3 — or may refuse entirely. Call ahead to ask their policy. Credit unions are often more flexible with non-members than large banks are.

Cashing at the post office

The U.S. Postal Service will cash any money order, whether you issued it or received it, at any post office location. Bring the original money order and a valid photo ID. The post office charges no fee to cash a money order it issued; if it was issued by another company, some post offices may charge a small fee, though many do not.

Post office hours vary by location, but most are open weekdays and many are open Saturday mornings. If you need cash outside those hours, this option will not work. The transaction is immediate — you walk out with cash.

Cashing at check-cashing stores and retail locations

Check-cashing businesses, grocery stores with money services, and some convenience stores will cash money orders same-day for a fee. The fee is usually $1 to $5 depending on the money order amount and the location. These places are open longer hours than banks and post offices, including evenings and weekends, which makes them useful if you need cash outside normal business hours.

Bring the original money order and a valid photo ID. The transaction takes five to ten minutes. The downside is the fee — if you need cash urgently and have no other option, it is worth it, but if you can wait a day or two, depositing into your bank account costs nothing.

Depositing into a bank account

You can deposit a money order into your bank account the same way you would deposit a check. Go to your bank in person, or use mobile deposit if your bank offers it. In-person deposits are processed immediately; mobile deposits typically clear within one to three business days. There is no fee to deposit a money order into your own account.

Mobile deposit works by taking a photo of the front and back of the money order with your phone and submitting it through your bank's app. Not all banks offer this, so check your app or call your bank to confirm. If your bank does not offer mobile deposit, you must visit a branch or ATM in person.

Depositing is the cheapest option if you do not need cash in hand immediately. It also creates a paper trail in your account, which can be useful for record-keeping or if you need proof of the transaction later.

What to do if the money order is damaged or lost

If the money order is torn, water-damaged, or otherwise unreadable, most places will refuse to cash it. Contact the issuer — the company or organization that sold the money order — with your receipt stub. They can issue a replacement if you can prove you purchased it. This process takes days or weeks, not hours.

If the money order is lost entirely, contact the issuer with your receipt stub. They will place a stop on the original and issue a replacement, but only if you have proof of purchase. This is why keeping the receipt stub is important. If you have neither the money order nor the receipt, the issuer cannot help you.

Fees and what to expect

Cashing a money order at your own bank or credit union is free. Cashing at the post office is free if the post office issued it. Check-cashing stores, grocery stores, and convenience stores typically charge $1 to $5. Some banks charge non-account holders $3 to $5 to cash a money order.

Depositing into your bank account is always free. If you are trying to avoid fees, depositing is the best choice — the only cost is the time it takes to clear, which is usually one to three business days.

Frequently Asked Questions

Can someone else cash a money order with my name on it?

No. The person whose name is on the payee line must cash it or deposit it. If you want someone else to cash it for you, you must sign the back and write their name, but many institutions will not accept this. It is simpler to cash it yourself.

What if I lost the receipt stub?

You can still cash the money order if you have the original document itself. The receipt stub is only needed if the money order is lost or damaged and you need to request a replacement from the issuer.

How long does a deposited money order take to clear?

In-person deposits at a bank branch clear immediately. Mobile deposits typically clear within one to three business days. Some banks hold the funds longer if the amount is large or if you are a new account holder.

Can I cash a money order at any bank, or only my own?

Any bank will cash a money order, but banks you do not have an account with may charge a fee of $3 to $5 or may refuse. Your own bank or credit union will cash it free or for a small fee. The post office will cash any money order for free if it issued it.

What if the amount on the money order is wrong?

You cannot change the amount. If the money order was filled out incorrectly, contact the issuer with your receipt stub. They can cancel it and issue a new one for the correct amount, but this takes several days.