Can You Cash a Money Order at a Post Office?
Understand the process of cashing money orders at a Post Office, including what's needed, limits, and alternative options.
Money orders offer a secure, prepaid payment method, providing a reliable alternative to cash or personal checks. This article explores the process and considerations for cashing money orders, especially at U.S. Post Office locations.
USPS Money Order Cashing Policy
The U.S. Postal Service (USPS) cashes only money orders it has issued. Domestic USPS money orders can be cashed at any Post Office location across the country, including APO/FPO locations, provided funds are available. Post Offices generally do not cash money orders issued by other entities, such as Western Union, MoneyGram, or private bank money orders.
While USPS money orders do not expire, cashing is contingent on the Post Office having sufficient cash on hand. Smaller Post Offices might not have enough cash for larger amounts, especially early in the day. It is advisable to consider this limitation when planning to cash a money order.
What You Need to Cash a Money Order
Cashing a USPS money order at a Post Office requires specific items. You must present a valid government-issued photo identification, such as a driver’s license, state ID card, passport, or a U.S. military ID. The name on your identification must precisely match the payee’s name printed on the money order. The physical money order is also required. Do not sign or endorse the money order beforehand; your signature should only be completed in front of the USPS retail associate at the counter.
Cashing Limits and Fees
When cashing a USPS money order, specific limits apply. For domestic money orders, the maximum value that can be issued and cashed is typically $1,000 for a single order. International money orders have a lower limit, generally $700, though some countries like El Salvador and Guyana have a maximum of $500. If you possess multiple money orders or one exceeding the typical cashing limit, you might need to explore alternative cashing methods. There is generally no fee for cashing a USPS money order at a Post Office for the payee. This means you receive the full face value of the money order. However, the ability to cash larger amounts depends on the Post Office having sufficient funds available, so it may be prudent to call ahead for very large sums.
Where Else to Cash a Money Order
If cashing a money order at a Post Office is not feasible, several other options are available. Many banks and credit unions will cash money orders, especially for their account holders. While your own bank might cash it for free, banks where you do not have an account may charge a fee. Depositing the money order into your bank account is also an option, similar to depositing a personal check.
Beyond traditional financial institutions, various retail stores and check-cashing services also offer money order cashing. Stores like Walmart, some grocery stores, and convenience stores often provide this service. These locations may charge a fee for cashing, which can vary, so it is beneficial to inquire about fees before proceeding. It is usually best to cash a money order at the same provider that issued it, if possible, to potentially avoid fees.