Cashing a money order is completed by depositing it in an existing bank account or using the direct issuer to cash the money order, according to My Bank Tracker. The process is similar to cashing a personal check, and valid identification is required. Wikipedia suggests using check cashing stores, convenience stores and grocery stores in the United States as additional options for cashing money orders.Continue Reading
Although money orders are issued by banks, grocery stores and the U.S. Postal Service, using a direct issuer, such as Money Gram or Western Union, decreases the fees associated with cashing a money order. There is a transaction fee associated with cashing a money order, according to My Bank Tracker. However, using an issuer can improve the likelihood of getting the money order cashed quickly and inexpensively.
My Bank Tracker suggests depositing the money order in an existing bank account when cash is not needed immediately. Money orders are a secure form of payment, and they offer an alternative to checks. However, My Bank Tracker explains that, in some instances, money orders are associated with scams and fraudulent activity. For that reason, before cashing a money order, it is best to ensure it is authentic.Learn more about Personal Banking