How to Cash a Money Order [Complete Guide]

The advent of fintech tools has made sending and receiving money — regardless of the amount or distance — quicker and easier than ever. These innovations all rely on the ubiquitous presence of financial networks and highly advanced digital infrastructure. Still, in the modern world, many people worldwide remain underbanked or even unbanked. For them, money orders continue to be a reliable and accessible means of payment.

This article serves as your step-by-step guide: you’ll learn what a money order is, discover places where you can cash a money order, read how to get a money order, and find out key tips to help you make the process smooth and secure.

What is a Money Order?

When you need to send money to someone or pay a bill, a money order is a secure and convenient alternative method to cash or checks. This form of payment functions similarly to a check. Its issuers are various financial institutions or governmental agencies (like post offices). However, unlike checks, which can bounce due to insufficient funds, money orders are prepaid and thus guaranteed to clear, so recipients can be confident that they will cash a money order instantly and receive their money in any case.

As of 2023, the U.S. Postal Service issued approximately 180,000 money orders daily. The Federal Reserve reported processing around 47.2 million money orders annually. Clearly, consumers continue to value the significant benefits of money orders. They are borderless, easy to obtain, less expensive than other payment systems (such as cashier's checks or wire transfers), and don't require users to share personal banking details. Even better — you don't need a bank account or smartphone to install a mobile app to send or receive a money order.

How does it work? The sender purchases a money order, enters the amount, and pays it (plus a small fee). The recipient is then notified that the money has arrived and can cash it. To ensure a smooth transaction, it's important to pay close attention to the details.

Preparing to Cash a Money Order: Things to Remember

Half the success of a money order comes from following the correct sending algorithm, which begins with properly filling out the necessary documents. How to fill out a money order?

The sender must indicate their own name and the recipient’s name (it can be a person or a business) and sign the form. Filling out the memo field is optional — add payment details like an account number or invoice number. Then, the receipt is detached to be kept in case the sender wants to cancel the transfer or track the payment. It is also a safeguard to prove the payment if the rest of the form is lost. Do not sign the back — this is reserved for the recipient’s endorsement when cashing the order.

If you are the recipient, there are also a few basics you should stick to. First of all, you must ensure that the amount on the form matches the sum agreed upon in advance. Secondly, please verify your identity by presenting a valid ID card that matches the name on the order. This is what prevents fraud and protects both parties involved, thereby avoiding instances of scams.

Now that you know what to do, let’s discover where to do it.

Where Can You Get a Money Order?

How to cash a money order? You can do it at several locations.

Banks and Credit Unions

If the institution issued the money order, they will verify its authenticity. Besides, if you have an account there, they are the answer to the popular question, "Where can I cash a money order for free?”

Retail Stores and Check-Cashing Businesses

Very often, many of these places have a Western Union or a Moneygram counter for this purpose. By contacting these institutions directly, you can sometimes reduce fees.

Postal Services

If USPS issued your money order, you can cash it at a post office free of charge — as long as it was also purchased there.

Very often, people wonder how to cash a money order online. Not all financial institutions support this option, but those that do usually require customers to take a photo of the money order and upload it through a secure platform for deposit. Other institutions may ask you to present the document in person at a physical branch or send it in by mail.

Once you've chosen your cash out method, visit the location and collect your funds.

Cashing a Money Order: A Step-by-Step Guide

Whether you cash a money order at a bank, post office, or retail location, the process is generally the same.

Don’t keep it on ice

Money orders technically don’t have an expiration date, many institutions have internal policies regarding their validity. Besides, the longer you wait to cash the order, the greater the risk of the money order being misplaced, damaged, or lost. Moreover, there’s also a chance that a fraudulent sender could cancel it. Once the order is cashed, it can no longer be canceled.

Bring a valid identification

To cash a money order, you'll need a government-issued photo ID, such as a driver’s license, a passport, or a military ID.

Endorse the order

You should only sign the money order in the designated endorsement area when instructed by a teller or cashier. Signing it prematurely can void the document.

Pay the fees

Usually, it is the sender who pays the fee when purchasing the order. Still, it’s wise to check the policies of your cashing location to understand what you are in for, as some places may charge additional fees for processing.

Get your money

This is the most rewarding step. Just remember to cash as soon as you receive it, store it safely, and save your receipt for future reference.

It’s not rocket science, right? Still, to make this routine even smoother, here are a few helpful precautions.

Essential Tips for Cashing a Money Order

Here are some practical suggestions to keep in mind:

Watch out for fraud and scams

In the contemporary financial world, fraudulent practices are among the greatest scourges. To avoid falling victim, always verify the funds. It can be done by checking the order's serial number with the issuing company. This can be done by calling the issuer or visiting their official website. If you suspect fraud, report it immediately and refrain from attempting to cash the order.

Don’t leave blank money orders unattended

A blank money order is a security risk. If someone else fills it out, they can claim the funds. That is why you should always complete all required fields immediately and stay focused while doing so.

Cancel the order in an emergency

If your money order is lost or stolen, contact the issuer immediately to request cancellation. For bank-issued orders, you’ll typically need to file a formal request and pay a cancellation fee. If a USPS money order is lost or stolen, you need to request a replacement by completing and submitting PS Form 6401 and paying a $17.25 processing fee. Keep in mind, the process may take up to 60 days.

Final Thoughts

Despite the rise of digital finance tools in today’s financial world, money orders continue to play a crucial role, especially for individuals without easy access to traditional banking services. They’re reliable, straightforward, and don’t require a bank account or mobile app.

To send a money order, simply visit a licensed issuer, provide the recipient’s name, and pay a small fee. The person receiving it can cash a money order at the post office, bank, or participating retail store — just bring a valid ID and sign the back of the order.

While money orders are generally safe, they aren’t completely scam-proof. Be sure to double-check the amount, verify the serial number, and if something goes wrong (such as loss or theft), contact the issuer immediately.