On Craigslist, you’ve chosen to put your old couch up for sale. You discover a buyer who is willing to pay with a money order and who is willing to meet the price. Is it safe to use this method of payment? Does it need a great deal of time and effort to convert into cash?
Yes, it is, and no, it isn’t going to. Like a check, a money order is prepaid. The payer does not take it out of their own pocket; instead, they pay for it in full up front. Since there is no possibility of it being bounced, it is really safer for you than a personal check.
It’s even simpler to cash it than a personal check. Because you have additional options, you may select the location and time that works best for your schedule.
Cashing a Money Order
It is straightforward to convert a money order into cash. You may stroll into your preferred store with your money order and leave with cash in minutes. Here’s how to go about it.
- Go to a location that accepts money orders.
It’s free to redeem your money order at your local bank or credit union. It is possible to cash a money order even if you don’t have a bank account or if your bank is closed. Post offices, convenience stores, and grocery stores are among the places where you may find these services.
- Endorse The Money Order
Approach the counter and write your name on the back of the money order. Do not proceed until you have arrived at the place and established that it will take your money order. If you endorse it ahead of time and then lose it, whomever picks it up may attempt to cash or deposit it.
- Display Identification
In addition to the money order, you must show proof that you are the intended recipient of the payment when submitting it. Use a government-issued picture ID to ensure that your identity is accepted. A driver’s license, passport, or military ID are all acceptable forms of identification.
- Pay Any Fees That May Apply
You may have to pay a fee for the service depending on where you cash your money order. In most circumstances, this charge may simply be deducted from the amount of money you get. For example, if you bring in a $500 money order and pay a $5 fee, you’ll get $495.
- Get Your Cash
Eventually, the teller will take the money order and give you your money. Before you put your money in your wallet, make sure you count it and obtain a receipt if you didn’t. Before you leave the business, make sure you have your money in a safe place.
Where Can I Deposit a Check?
Where Can I Cash a Money Order?
A money order can be cashed at a variety of locations, including:
- Credit Unions and banks. For most bank and credit union customers, money orders can be cashed at no cost. However, you may not always be able to get your money in whole and immediately. You may be required to deposit the majority of it and only receive a fraction of it in advance. You’ll be charged a fee if you use a bank where you don’t have an account.
- Those who provide the service of issuing money orders. A money order can also be cashed at the place where it was issued. For example, Western Union money orders may be cashed at any of their locations. Cashing money orders may not be available at every location, so call ahead to double-check before making the journey.
- Post Offices Money orders are also issued by the United States Postal Service (USPS). Theoretically, you should be able to cash a USPS money order at any post office. A tiny post office may not have enough cash on hand to cover a hefty check.
- Check Cashing Store. For persons who don’t have bank accounts, a check cashing store is a place where checks and money orders may be exchanged for cash. However, the prices charged by these establishments are sometimes exorbitant.
- Super Market. Western Union and MoneyGram services may be available at several large supermarkets. Cash money orders from that issuer at the customer care counter if it applies to your case.
- Convenience stores. It’s possible to get money orders in some 7-Elevens and other convenience stores. It is true that certain shops that offer money orders may be unable to cash them at the time of purchase.
- Various other vendors. Money orders may be purchased and cashed at a few different retail establishments. For example, Walmart accepts money orders from Western Union and MoneyGram. The Western Union and MoneyGram counters can be found at several pharmacies, such as CVS and Rite Aid.
Money Order Processing Fees
Cash money orders are often redeemed in banks, even if the customer is not a customer of the bank. At other locations, this is a one-time charge of a few dollars or less. At other times, it’s a proportion of the entire amount that’s involved. A tier system of pricing is also present in some establishments.
For example, Walmart charges the same cost for cashing a check as it does for redeeming a MoneyGram money order. A money order for up to $1,000 costs $4. The cost is $8 for money orders ranging from $1,000 to $5,000.
There are several advantages to using a money order as a form of payment. When compared to a large wad of cash, a personal check is far more convenient to carry around in your wallet.
If you take money orders, you’ll have to pay the cost to cash them. Fortunately, depositing or cashing it at your bank or returning it back to the original issuer will prevent this.
If you routinely receive money orders, you may want to consider opening a bank account. ‘ A free checking account may not be available in your area, but the money you save by not having to pay a service fee for cashing money orders can be enough to cover the monthly price.