Money Order Cashing Guide: Easy Steps to Get Started

Related searches
Money orders are used to pay instead of cash. Because the money order is prepaid, the recipient is certain to receive full payment without the risk of bad checks and invalid credit card numbers. To cash a money order, all you need to do is find a suitable place to deposit it or exchange it for cash.

Read this article to learn everything you need to know when cashing a money order.

Choose Where to Cash Your Money Order

Find out where the money order was issued. Money orders may be issued by the United States Postal Service (USPS), banks, department stores, credit unions, and cash advance stores.

  • The place of issue of a money order is usually indicated by a mark or stamp on the corner of the note. Look for the USPS logo, bank logo, or the name of another organization.
  • If you’re not sure where the money order came from, ask the person who gave you the money order where he or she got it.
  • If you can’t figure out where the money order came from, that’s okay. You can’t take it to the post office, but you can take it to a bank or other institution that will cash a money order.

Find a place to cash it out. Money orders are usually cashed at the place where they are purchased. If you have a bank account, you can also choose to cash out there. This process is universal.

  • Go to your bank. A bank where you have a checking or savings account will cash the money order for you. Some banks will require you to have sufficient funds instead of cashing out the amount. You can also deposit a money order into your bank account.
  • Go to the post office. The post office will honor money orders issued by a certain post office. Larger post offices will have enough funds to cash large denominations, so if your money order is of a large denomination, choose a branch that is larger in the area.
  • Go to a department store or convenience store. Most department or convenience stores that sell money orders will also honor money orders. Their fees are usually lower and sometimes they will cash you out for free.
  • Go to a credit union that will guarantee funds. For example, if a money order comes from the L&N Federal Credit Union, any L&N Federal Credit Union branch can cash the money order in full.
  • Go to a check-cashing store. Think of this as a last resort, as check-cashing stores often charge more than department or convenience stores.
  • If you have a money order issued abroad, you may have to cash it in that country and then wire it to you. Banks usually charge more for this service, so if possible, it’s a good idea to make sure the money order is issued in the currency of the country you intend to cash it in.

Cash the Money Order

Bring identification. Because a money order is issued payable to a specific payee, you will need to prove that you are that payee. Bring your driver’s license, passport, or other form of identification to prove you are who you say you are.

Take out this money order. Go up to the teller, postal worker, or cashier and tell him or her you have a money order to cash. He or she may ask to see your money order and your ID.

  • Before you hand over the money order, ask the person handling you how much it will cost. Even if you have already done your research, make sure you and the agency representative are on the same page to avoid misunderstandings.
  • When you feel uncomfortable with the process of cashing a money order at an establishment, don’t be afraid to turn around and leave. If the fee offered to you by the person you serve is higher than what you are prepared to pay, try another bank, department store, or convenience store.

Receive your cash. After this person processes your money order for you, you will receive cash equal to the amount of the money order. Usually you can ask for payment in cash of a specific denomination. Count the money and make sure it’s the right amount before you leave the establishment.

  • You’ll probably want a receipt in case you miscount your money and later realize the place still owes you money.
  • If you deposit the money order into your bank, you can request that part of the money order be cashed to you.

Tips

  • In a small city or town, if you don’t have a bank account and there’s no check cashing place in your community, you may have to go a little further and find a branch of an issuing agency (for example, a branch of the United States Postal Service), a business Branches with volumes large enough to receive enough cash in one business day. This is usually a problem for $400 or more unless it’s late in the workday and in a busy branch.
  • You can transfer a money order to another person by endorsing the back of the money order, having the new payee sign below the original payee’s signature, and bringing both parties’ IDs to the chosen cashing location. Compare around and find the place with the lowest service charge.