Introduction
If you are reading this article, chances are you’ve found yourself with a money order in hand and need to cash it. A money order is a piece of paper that acts like a prepaid check, it functions as a guaranteed payment to the recipient. This makes it a popular choice for those who don’t want to use cash or a personal check. However, it can be tricky to cash a money order because not all places accept them. Additionally, scams and fake money orders are at an all-time high, which means you need to be diligent when handling your money order. In this guide, we will provide you with all the information you need to cash your money order safely and quickly.
Step-by-Step Guide to Cashing a Money Order
There are several places where you can cash a money order. Let’s take a look at the step-by-step guide on how to cash money orders at different providers.
How to Cash a Money Order at a Bank
One of the easiest ways to cash a money order is at a bank. Most banks accept money orders, and you can cash them whether you have an account at that bank or not. Here is how you can cash a money order at a bank:
- Go to the bank that issued the money order.
- Endorse the money order by signing on the back of it.
- Provide a government-issued ID (e.g. driver’s license, passport).
- The bank will verify the authenticity of the money order and then provide you with the cash equivalent.
- Keep the receipt in a secure place until you are sure the funds are available.
How to Cash a Money Order at a Credit Union
Credit unions are similar to banks, but they are member-owned, which means they usually offer better rates and lower fees. Here’s how you can cash a money order at a credit union:
- Join a credit union that accepts money orders if you are not already a member.
- Endorse the money order by signing on the back of it.
- Provide a government-issued ID (e.g. driver’s license, passport).
- The credit union will verify the authenticity of the money order and then provide you with the cash equivalent.
- Keep the receipt in a secure place until you are sure the funds are available.
How to Cash a Money Order at a Check-Cashing Store
If you don’t have a bank account or credit union membership, a check-cashing store is another option to cash your money order. These places usually don’t require you to have an account with them, but they may charge you a higher fee than other providers. Here’s how you can cash a money order at a check-cashing store:
- Go to a check-cashing store in your area with your government-issued ID and the money order.
- Endorse the money order by signing on the back of it.
- Pay the fee charged by the check-cashing store. Fees vary by location, but they usually range from 1-10% of the money order amount.
- The store will verify the authenticity of the money order and then provide you with the cash equivalent.
- Keep the receipt in a secure place until you are sure the funds are available.
Tips to Make the Process Smoother
Regardless of where you decide to cash your money order, there are a few tips you can follow to make the process smoother:
- Make sure you endorse the back of the money order with your signature before trying to cash it.
- Bring a government-issued ID, such as a driver’s license or passport, with you.
- Call ahead to the provider you plan on using to confirm they cash money orders and whether there are any restrictions (such as the maximum amount they can cash).
- Choose a provider with a convenient location, operating hours, and acceptable fees.
- Keep the receipt of the transaction in a secure place until you are sure that funds have cleared. It would be best if you stored it until the money from the order is showing up on your account or in your wallet.
Benefits and Drawbacks of Each Option
Now that you know how to cash a money order, it’s important to weigh each option’s pros and cons carefully. Here’s a brief comparison of the different options:
| Bank | Credit Union | Check-Cashing Store | |
|---|---|---|---|
| Fee | Low | Low | High |
| Wait time for Funds Availability | Immediate | Immediate | Immediate |
| Identification Required | Government-issued ID | Government-issued ID | Government-issued ID |
Pros and Cons of Each Option
- Bank: Low fee, immediate availability of funds, requires government-issued ID.
- Credit Union: Lower fee, immediate funds availability, requires government-issued ID.
- Check-Cashing Store: High fee, immediate funds availability, requires government-issued ID.
Top 5 Places to Cash a Money Order
Based on customer reviews, convenience, and affordability, we have compiled a list of the top 5 places to cash a money order:
1. Walmart
Walmart offers a low fee of 70 cents to cash money orders up to $1,000. You will need to bring a government-issued ID, and the cash will be available immediately. Walmart has locations nationwide, making it a convenient choice for many.
2. 7-Eleven
7-Eleven has over 8,000 locations across the United States, which makes it an excellent choice for cashing money orders. They charge a fee of around $1.50 per money order and require a government-issued ID to complete the transaction. The cash is made available to you immediately.
3. CVS
CVS has over 9,000 locations nationwide and charges a fee of around $2 per money order. The money order cashing process requires a government-issued ID, and the cash is made available immediately. CVS is an excellent choice for those who need to cash a money order quickly.
4. Western Union
Western Union has over 500,000 locations worldwide and offers different options for cashing money orders, including online cashing services. Fees vary depending on the location, and you will need a government-issued ID to complete the transaction. Funds are available immediately.
5. MoneyGram
MoneyGram has over 350,000 locations worldwide, and you can cash your money order at any MoneyGram agent location. Fees vary based on the location, but you can expect to pay around $3 to $5 per money order. You must provide a government-issued ID to complete the transaction, and funds are available immediately.
Personal Story
We spoke with Kathy, who had to cash a money order quickly. She received a money order from a friend who owed her money, but she didn’t have a bank account. At first, Kathy went to a check-cashing store, but the fees were too high. She decided to go to Walmart, which had the lowest fees in her area. Since she had a government-issued ID, the transaction was smooth, and the cash was made available immediately.
Avoiding Scams and Spotting Fake Money Orders
Unfortunately, money order scams are on the rise. Here are some tips to avoid common scams:
- When receiving a money order, inspect it carefully. Look for signs of tampering, such as the amount or payee being altered.
- Do not accept money orders from people you don’t know or trust.
- Be cautious of anyone who asks you to cash a money order and then send some of the funds back to them. This is a common scam that involves fake money orders.
- Only use reputable providers to cash your money order.
Cashing Money Orders Online
Some companies offer online options for cashing money orders, such as MoneyGram and Western Union. However, these options may involve higher fees or longer wait times for funds to be made available. It’s a good idea to weigh the convenience of online cashing against the fees charged by the provider.
Tips for Regular Money Order Users
If you regularly receive money orders, there are some steps you can take to make the process more efficient and secure:
- Consider opening a bank account or credit union membership to make cashing money orders easier.
- Use a mobile app to deposit your money order, if possible.
- Keep records of all money orders you receive and cash for your records in case of any issues.
Conclusion
Cashing a money order can be a simple process if you know where to go and what to do. By following the step-by-step guide, you can choose the right provider according to your needs, and you can cash your money order without running into any issues. Always be cautious of scams and fake money orders and take the necessary steps to protect yourself. Whether you use a bank, a credit union, or a check-cashing store, make sure to follow the instructions carefully, and always keep the receipt in a secure place until you are sure that funds have cleared.
