Banks and credit unions cash money orders for free if you have an account

The easiest free option is your own bank or credit union. If you have a checking or savings account there, most institutions will cash a money order at no charge — you simply walk in, hand it to a teller, and the funds go into your account or you receive cash. Some banks also cash them at the drive-through window. Call ahead to confirm your branch does this, because policies vary slightly between locations.

Credit unions are often more flexible than banks about cashing money orders from non-members, but members always get it free. If you belong to a credit union, this is your fastest and most reliable route.

Key Takeaways

  • Your own bank or credit union will cash a money order for free if you have an account there, and most do this at the teller window or drive-through.
  • Walmart, grocery stores, and check-cashing businesses charge fees (usually $3 to $6) to cash money orders, so avoid them if you want to pay nothing.
  • Some banks will cash a money order for a non-member if you ask, though this is not may provide and policies differ by branch.
  • Money orders issued by the bank or credit union you use may be cashed free even if you do not have an account, so check with the issuer first.

Cashing at the bank that issued the money order

If the money order was issued by a specific bank — for example, a Bank of America money order — that bank will often cash it for free even if you are not a customer. This works because the bank is the one that originally sold the money order and holds the funds. Call the branch nearest you and ask whether they cash their own money orders for non-members at no cost.

The same principle applies to credit unions. If a credit union issued the money order, that credit union may cash it free for anyone, member or not. This is worth checking before you go elsewhere.

Asking your bank to cash a money order from another institution

Some banks will cash a money order issued by another bank or by the U.S. Postal Service, even if you are not a member, as a courtesy. This is not a may provide — policies differ by bank and by branch — but it costs nothing to ask. Call ahead and explain what you have. If they say yes, bring your ID and the money order.

Smaller community banks are sometimes more willing to do this than large national chains, but you cannot count on it. If they decline, you have not lost anything by asking.

Money orders from the U.S. Postal Service

A USPS money order can be cashed at any post office for free if you have the receipt. If you lost the receipt, the post office can still cash it, but you may face a small fee or a delay while they verify the money order. Bring your ID and the money order itself.

If you do not have access to a post office, some banks will cash USPS money orders, though again this is not may provide. Your best bet is to visit the post office directly.

What to bring when you cash a money order

You will need a valid government-issued ID — a driver's license, passport, or state ID card. Some places also ask to see the receipt that came with the money order, though this is not always required. If you have it, bring it anyway.

If you are cashing a money order that is made out to someone else, most institutions will not cash it for you. The person whose name is on the money order needs to be present with their ID, or they need to sign the back and write "Pay to the order of [your name]" so you can deposit it into your account instead.

Why check-cashing and retail locations charge fees

Walmart, grocery stores, and check-cashing businesses charge $3 to $6 to cash a money order because they are taking on the risk of handling it and the cost of verifying it. They are not the bank that issued it, so they have to verify the money order is real and that the funds will actually transfer. Banks and credit unions do not charge their own members because the member relationship already exists and the institution trusts the account holder.

If you have any bank account at all, using that institution is always cheaper than paying a fee at a retail location.

Frequently Asked Questions

Can I cash a money order at an ATM?

No. ATMs accept deposits but do not dispense cash for money orders. You must go to a teller window or customer service desk inside the bank or credit union.

What if the money order is made out to my business, not my personal name?

Bring the money order, your business ID or registration documents, and your personal ID. Banks handle business money orders differently than personal ones, so call ahead to confirm they will cash it and what documents you need.

Do I have to deposit the money order into my account, or can I get cash?

You can choose either one. Tell the teller whether you want the funds deposited or withdrawn as cash. If you withdraw cash, you may be asked about the amount if it is large, as banks report large cash transactions to the government.

Can I cash a money order at a different branch of my bank?

Yes. Any branch of your bank will cash a money order for you if you have an account there, even if it is not your home branch. Bring your ID and the money order.

What if the money order is damaged or torn?

Most institutions will still cash a damaged money order as long as the serial number and amount are readable. If it is severely damaged, the issuing bank or post office may need to verify it before cashing. Bring it to your bank and ask — do not assume it is worthless.