Have you heard of a money order but don’t know how to use it? This is a secure payment option for sending a prepaid sum. This is a reliable solution for consumers who want to send cash and they work similarly to a paper check.
A money order may be utilized for a used auto purchase, a rental security deposit, or sending funds through the mail and internationally. Compared to a regular paper check, the money order is guaranteed so clients prefer this type of payment. In this article, we will share with you how and where to cash a money order.
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How to Cash a Money Order
It is a quick and easy process to cash a money order. We all may urgently need additional funds. Qualifying for a 500 loan bad credit can be tough, but if you have a money order you can cash it and cover the necessary purchase.
Here is what you should do:
- Take the payment to a bank or another institution that cashes money orders and checks. You may visit the credit unions, the local banks, check-cashing stores, or grocery stores.
- Endorse the money order like a paper check. Make sure you sign the back of the money order on the back. Prepare to hand it to the customer service agent or a teller.
- Provide your ID. The next step is to show a valid ID to prove you are authorized to cash this money order. You may show your passport, a driver’s license, a government-issued ID, or a military ID.
- Pay the applicable fees. This option will cost you some fees so the total sum of cash you obtain will be lower.
- Receive your cash. Remember to place it securely in your wallet or purse.
Places Where You Can Cash a Money Order
There are many places you may cash a money order. American consumers are looking for ways to get additional cash. As reported by CNBC, American households are spending an extra $327 per month due to inflation.
So, if you’ve received a money order you can cash it and fund your immediate needs. It’s easy and convenient to choose the desired location and obtain your cash. Depending on your area, some of the following options may suit your needs better than others.
- Local bank. This is the easiest location you can visit to cash a money order. Do you have a checking account at a certain bank? Then you may securely deposit the money straight away and use the cash for your needs.
- Money transfer outlet. Another option is to try MoneyGram or Western Union. The service is rather fast while the fees are affordable. You can also use online money transfer software like Silverbird.
- Credit union. Are you a member of a credit union? Then it will be a smart idea to go there and cash money orders provided that you have an active account in this credit union.
- Post office. Do you want to cash a postal money order? Consumers who want to cash USPS money orders may go to the nearest post office to make a secured withdrawal. Other services such as buying postage stamps or sending a package may also be performed at the same time.
- Check-cashing location. Different stores that cash checks may also offer such services no matter if it’s a payment from a close friend or a paycheck.
- Grocery Store. You may also find some stores where you are allowed to cash a money order. Go to the customer service counter to get more information about this service.
- Money order issuer. What service provider issued the money order you are about to cash? You cash obtain cash at a store that uses the same company. For instance, it can be Western Union.
- Convenience store. This is another suitable place but you should call this store in advance to ensure they offer this service. Otherwise, visit their website before you go to the convenience store.
- Retail store. Check with the customer service counter of a particular retailer if they can cash the money order or call them ahead of time.
Finance Charges for Cashing Money Orders
When you cash a money order at any place other than the local bank, you will need to pay a fee. A few dollars will be required to pay in transaction fees. Otherwise, you will face a percentage of the total amount. Convenience stores and check-cashing stores typically charge more compared to credit unions and local banks.
As a result, these finance charges may add up as you never know how much you will be demanded to pay this time. If the value of the money order is $1,000 or less and it was issued by MoneyGram, the maximum finance charge will be $4. If you want to cash a money order with the value of $1,001 to $5,000, the maximum fee will be $8.
Those who get multiple money orders a month may want to open an account at a credit union or a bank to lower the fees. It’s possible to obtain cash anytime without extra charges once you become a member of a bank or a credit union.
How to Deposit Money Orders
Sometimes you don’t need the whole amount of cash withdrawn from the money order. What can you do in this case? You may deposit the funds into your checking account and have a chance to withdraw your money later when you require it. This way, your money will remain safe and secure in the bank.
A savings or checking account of the client may be utilized for the money order transfer. In case a consumer doesn’t yet have a checking account at a credit union or a bank, they may utilize the money order for their initial account opening deposit. Opening an account with the local bank or credit union may lower the fees and save you money in the long run.
If you want to cash the money order, you may visit a variety of places such as the local bank, credit union, grocery store, post office, money transfer outlet, retail store, or check-cashing location. While some places charge higher fees for this option, using your account at the credit union or bank may lower these charges. If you already have an active account at the local bank or credit union, you may even cash a money order for free.