Can You Exchange Money Orders in Banks?

Money orders are a secure alternative to cash but carry a small fee.

The post office issues and cashes money orders. While many banks accept money orders as deposits from customers, banks do not have to cash or accept money orders. Talk with your bank before trying to exchange a money order.

Banks and Post Offices

Any post office will cash a money order as long as the person exchanging the money order has appropriate identification. The post office states that banks often accept money orders from account-holders and other customers.

Money Orders

The post office issues money orders and advertises them as a secure alternative to sending cash through the mail. Money orders can be purchased from any post office in denominations up to $1,000 each and paid for with cash, a debit card or traveler's checks (as of February 2011).

Redemption Requirements

A person receiving a money order must show state-issued picture identification. If cashing more than $10,000 in one day (even at different institutions), the individual must fill out a registration form.

International Money Orders

The post office also issues international money orders valid in 30 countries, mostly Central and South American countries. International money orders can only be cashed at state-run post offices in a country that has an agreement with the United States to accept the money orders as legitimate mediums of exchange.

References

• U.S. Postal Service: Extra Services - Money Orders
• U.S. Postal Service: International Money Orders