If you were paid with a money order, how do you turn it into cash? You can deposit money orders in cash or like a check. The process is as follows:
- Bring the money order to where you will be cashing it (bank, credit union, check to cash, etc.)
- Confirm the money order by signing your name on the back. (More information on the recommendation)
- View the identification to confirm that you are authorized to deposit the money order
- Pay all fees for the service
- Get some cash
Unfortunately, banks often require you to bring the physical money order in – they don’t allow you to use your cell phone to make a remote deposit. Device.
Money Order Basics
The first time you’ve received a money order, you might be wondering what is on your hands. A money order is similar in appearance and function to a check, so you can treat money orders just like a check. You cannot issue money orders like cash; They represent funds in someone else’s account. In order to use these funds, you will need to clear the money order or deposit the funds into your account.
For a more detailed explanation of the benefits and limitations of money orders, see Money Order Basics.
Where can I redeem a money order?
There are numerous places where a money order can be cashed. Oftentimes, your best option is with a bank or credit union that you already have an account with.
However, you may not be able to receive the full amount of the money order immediately – your bank’s payment availability policy will explain how quickly the money will be available. If you belong to a credit union, you may be able to visit the branch of another institution that uses the same shared branching network (so you don’t have to switch to your credit union).
Money order issuer: If you don’t have an account or cannot get to a branch office, try visiting a money order issuer location (the organization that prints and secures the money order). For example, you would visit a post office to cash USPS money orders or a Western Union office (often located in supermarkets) to receive a Western Union money order. Working directly with the issuer can minimize fees and increase your chances of getting some quick cash. Note that if you are not a customer and have not issued that money order, some locations will not receive money orders.
Other options: As a last resort, you can also try depositing a money order at retail stores such as check cashing, convenience stores, and grocery stores. Learn more about where to cash a check
Deposit of money orders
If you don’t need cash right away, a smart move is likely to cash (rather than cash) the money order in your bank account. You can get cash later if needed – but why not keep the funds in the bank until then? You are less likely to spend the money if you don’t carry it around with you, so put on what you can and you’ll have more for later.
Where should you leave a money order?
Use your existing account – they will be happy to accept the money. If you don’t have a bank or credit union account, you can always use this money order to make your first deposit. Having a bank account saves you time and money in the long run.
From a logistical point of view, depositing a money order is the same as depositing a check. Confirm the reverse of the money order and list it separately (as a check) on your deposit slip.
Fees for the redemption of payment orders
Expect a fee when cashing a money order other than your bank – unless you pay a USPS money order through the post office. You’ll usually have to pay transaction fees and/or a percentage of the proceeds (several dollars is a typical transaction fee). These fees can add up, especially at check collection stores and convenience stores. It’s almost always worth opening an account with a bank or credit union – even if they charge fees for doing so.
Once you are a customer, you can go to your bank and submit cash checks or money orders at any time and at no additional charge.
It is good?
Money orders are often used in fraud cases. If you want to make sure you get paid, make sure the money order is legitimate before accepting it. You can never be 100% sure, but you can identify most scams by calling a money orderer to verify the funds.
- More information: How Money Order Scams Work
- How to: Review Funds on a Money Order
Whatever you do, never accept a money order for more than you asked for. back to your “customer.” This is almost always a scam.
Once you’ve verified that a money order is legitimate, do something quickly (cash or deposit) if you are concerned about fraud. It is possible for your buyer to cancel the money order after sending it to you.
Also read: how to get rid of a hangover