Can I Put a Money Order in an ATM?
Navigate the process of depositing a money order. Learn why ATMs are typically not an option and how to ensure your funds are securely processed.
Money orders function as a prepaid alternative to cash or checks, offering a secure way to send funds. While some banks might allow ATM deposits for money orders, particularly those issued by the USPS, it is generally not the standard or most reliable method. Money orders from various issuers often have specific characteristics that make automated processing challenging.
Reasons for ATM Limitations
Most automated teller machines (ATMs) are not equipped to fully process money order deposits due to security and verification factors. Money orders incorporate distinct security features like watermarks, heat-sensitive ink, and security threads, which require manual inspection by bank personnel for authenticity. ATMs are designed to read magnetic ink character recognition (MICR) lines on checks and validate currency, not these specialized security elements.
Money order verification differs significantly from personal checks. Unlike checks, money orders often require a bank teller’s visual examination and verification before funds become available. Money orders are issued by various entities, including the U.S. Postal Service, Western Union, and MoneyGram, and their formats vary. This diversity in design and security features makes universal automated processing by an ATM difficult.
Depositing Money Orders
The most common and reliable method for depositing a money order into a bank account is by visiting a bank branch in person. The process involves endorsing the money order by signing the back, presenting it to a teller, and providing valid identification, such as a driver’s license or passport. Some financial institutions may also request your account number.
Mobile deposit through a bank’s smartphone application is an option for some money orders, though it is less universally accepted than in-person deposits. Policies for mobile deposits vary by bank; some institutions, like U.S. Bank, accept money orders via their mobile app, while others, such as Wells Fargo and Bank of America, explicitly state that U.S. postal money orders or all money orders are not eligible. It is important to check with your bank regarding their mobile deposit policies and limits. Depositing a money order by mail is possible, but carries risks like loss or delay, making in-person or mobile deposits (if supported) safer alternatives.
Important Considerations for Deposits
After depositing a money order, fund availability may not be immediate, as banks often place holds similar to those applied to personal checks. These holds allow the bank to verify the money order’s authenticity with the issuer, a process that can take a few business days, or up to 7 to 14 days, depending on the bank and the money order’s origin. Some banks may make funds available the first business day after deposit, while others may extend this period. Confirm your bank’s fund availability policy.
Maintaining meticulous records is a practical step until the funds from a money order are fully cleared and accessible in your account. Keep the money order stub or receipt, which contains a tracking number, as proof of purchase to monitor its status with the issuer. If a money order is lost or stolen before it is deposited, contact the issuer with your receipt information to initiate an inquiry or replacement process, which may involve fees and take several weeks.