It is possible to redeem a MoneyGram Money Order at many various check cashing locations, as well as the recipient's bank or credit union. Companies have differing policies regarding money order redemption, but it is customary for representatives to require photo identification to cash the money order.
Bank and check cashing company representatives generally check money orders for security features, such as watermarks on the rear and seals on the front, as counterfeit money orders are a common ploy in scams. After ensuring the validity of the money order and asking for photo identification, the representative at a check cashing company may also deduct a fee from the total amount, per the company's policy. If the money order recipient has an account with a bank or credit union, however, the teller should cash that money order without charging fees after ascertaining that the money order is genuine.
Having a bank account is not a requirement for cashing a money order, but it may be the only way to redeem one without a fee, if a local MoneyGram location is not convenient. People who do not have picture ID should ask check cashing locations about policies regarding non-picture ID, including Social Security cards. Signing a money order to a third party sometimes violates check cashing location policies, as well as policies for some banks. Therefore, it is important to ensure that doing so does not violate the third party's bank policies before endorsing the money order and having the third party try to cash it.