Can You Cash a Money Order at an ATM?

Money orders serve as a secure and reliable payment method, often utilized when cash is too risky to send or a personal check is not accepted. Many individuals wonder about the convenience of cashing these instruments at an ATM. While ATMs offer a range of banking functionalities, their role in handling money orders is specific, primarily focusing on deposits rather than immediate cashing.

Cashing Versus Depositing at an ATM

ATMs do not provide immediate cash for money orders. Cashing a money order means receiving its full value in physical currency at the time of the transaction. This process requires verification of the money order’s authenticity and the identity of the recipient, which an ATM cannot adequately perform. Financial institutions prioritize fraud prevention and security, necessitating human oversight for cashing transactions.

Conversely, depositing a money order involves adding its value to your bank account. ATMs are widely capable of accepting deposits, treating money orders much like personal checks. When you deposit a money order, the funds are not instantly available for withdrawal. Instead, they are credited to your account, typically becoming accessible after a processing period, allowing the bank to verify the funds.

Depositing a Money Order at an ATM

Depositing a money order at an ATM is a common practice for adding funds to your bank account. To initiate the deposit, you will generally need to endorse the money order by signing the back, similar to endorsing a check. Next, insert your ATM or debit card and enter your Personal Identification Number (PIN).

Follow the on-screen prompts, selecting the “Deposit” option and indicating the account where you wish to place the funds, such as checking or savings. The ATM will then instruct you to insert the money order into the designated slot. Modern ATMs can often scan and read the money order, displaying the amount for your confirmation. After verifying the deposit amount, confirm the transaction and retrieve your receipt, which serves as proof of deposit. Funds from an ATM deposit are typically subject to a hold period, with full availability often occurring within one to two business days.

Other Ways to Cash a Money Order

Since ATMs do not cash money orders, other options exist for obtaining cash. Your own bank or credit union is often the most straightforward choice, especially if you are a customer, as they typically cash money orders for free. You will need to present the endorsed money order and a valid government-issued identification.

Money orders can also be cashed at the location where they were originally issued, such as a United States Postal Service (USPS) office for USPS money orders, or a Western Union or MoneyGram agent location for their respective money orders. Cashing a USPS money order at a post office is often free. Retailers like Walmart also cash money orders, though they may charge a small fee. Additionally, various check-cashing services can provide immediate cash, but these often come with higher fees, potentially ranging from 1% to 4% of the money order’s value, and require valid identification.