Does UPS Sell or Cash Money Orders? (Try This Instead)

Does UPS Sell or Cash Money Orders? Your Complete Guide

If you‘re looking to purchase a money order or cash one that you‘ve received, you might be wondering if the UPS Store is the place to go. After all, UPS is known for reliably handling important documents and parcels. So it would make sense if they also dealt with money orders, right?

The short answer is no, UPS does not sell money orders, nor can you cash a money order at a UPS Store location or UPS customer center. While this may come as a surprise or inconvenience, there are plenty of other places where you can get a money order or turn one in for cash.

In this guide, we‘ll explain in detail why UPS doesn‘t offer money order services, where you can get money orders instead, and some helpful tips for using this secure payment method. Let‘s start with the basics.

What is a money order and how does it work?

A money order is essentially a prepaid piece of paper that functions like a check. You can purchase a money order with cash, a debit card, or traveler‘s checks at many popular retailers. To do so, you simply go to the customer service desk or money services counter, specify the amount (which will have a maximum limit, usually $500-$1000), and pay the amount plus a small fee, typically less than $2.

You then fill out the money order similar to a check, with fields for the recipient‘s name, your name and address, and optionally a "memo" field to specify what the payment is for. Some money orders may have a space on the back for your signature, which isn‘t always required but can help prove to the recipient that you‘re the one who purchased it.

The recipient can then take the money order to their bank or credit union, or to the same retailer that issued it, and cash it or deposit it just like a regular check. For this reason, money orders are a secure way to send payments through the mail without the risk of cash getting lost or stolen. The money is guaranteed by the issuer.

Money orders also offer more privacy than personal checks, since they aren‘t linked to your bank account. Only the issuer will have a record that you purchased it. This makes money orders useful for one-time transactions with people or businesses that you may not fully trust with your banking details.

Why doesn‘t UPS sell money orders?

Given the benefits and uses of money orders, you would think the UPS Store would be a natural place to purchase them or cash them in. However, there are a few key reasons why UPS doesn‘t deal with money orders:

  1. UPS is a shipping company, not a financial institution. Their core business is logistics and transportation of parcels, documents, and freight. Managing the sale and processing of money orders would require additional financial infrastructure, staff training, and regulatory compliance that don‘t align with UPS‘s strengths and strategic priorities.

  2. Lack of customer demand. While getting a money order while you‘re shipping a package could be convenient, UPS likely doesn‘t see enough customers asking for this service to make it worth the cost and complexity of offering it. Their stores already provide a range of ancillary services like packing, printing, notarization and mail boxing, so money orders may be a lower priority.

  3. Security risks. Having a supply of blank money orders and extra cash on hand could make UPS Stores more appealing targets for theft. Unlike banks, UPS locations typically don‘t have comprehensive security measures like vaults, cameras and guards.

So in short, money orders simply aren‘t a good fit for UPS‘s business model and capabilities. But that doesn‘t mean you‘re out of options. Next we‘ll look at the many places you can purchase and cash money orders besides UPS.

Where can I get a money order instead of UPS?

Money orders are widely available at thousands of locations across the United States. The most common places to purchase a money order include:

  1. Supermarkets and grocery stores like Walmart, Kroger, Safeway, Publix, etc. Look for the customer service desk or money center.

  2. Drugstores and pharmacies like CVS, Walgreens, and Rite Aid

  3. Convenience stores and gas stations like 7-Eleven

  4. The post office (USPS)

  5. Banks and credit unions, if you have an account with them

  6. Dedicated money transfer and payment services like Western Union and MoneyGram

The fees and limits on money orders will vary by the issuer. For example, money orders from the post office have a maximum amount of $1000, and cost $1.65 for amounts up to $500 and $2.20 for amounts over $500.

At Walmart, money orders go up to $1000 and cost a flat fee of $0.88. Kroger charges $0.84 with a store loyalty card. Most drugstores and convenience stores cap money orders at $500 and charge between $0.65 and $1.

To cash a money order, your best and cheapest option is usually to deposit it at your own bank or credit union. There will be an endorsement area on the back of the money order where you sign your name, just like a check. Your bank may put a hold on the deposit amount until the money order clears, which can take a few business days.

You can also cash a money order at the same place that issued it, often for a fee up to a few dollars. For example, you could cash a postal money order at any post office location for free, but if you cash it at your bank they may charge a fee since they can‘t verify it with the same ease.

Wherever you purchase or deposit a money order, make sure to keep your receipt until you‘re certain the money has been received or the funds have cleared in your account. The receipt will be important for tracking or proof of payment in case there are any problems.

Alternatives to money orders at UPS

Even though you can‘t get a money order at the UPS Store, there are some adjacent financial services and products that UPS does offer for sending and receiving payments securely:

  1. Prepaid debit cards. Some UPS Stores partner with providers like NetSpend and Green Dot to sell prepaid Visa and Mastercard debit cards. These work just like gift cards that you can load a specific dollar amount onto and then use that balance for purchases or withdrawals until it‘s depleted. Prepaid debit cards offer similar benefits to money orders in terms of privacy and being able to make a payment without a bank account.

  2. Bill pay services. Certain UPS Stores have partnered with a company called DolEx to provide walk-in bill payment processing. So if you need to pay a utility bill, for example, but don‘t have a checking account, you can take cash to a participating UPS location and they will transmit the payment electronically to the billing company for a small fee. This can achieve the same result as mailing in a money order to pay a bill.

  3. Check cashing. Some UPS Stores may also cash payroll and government-issued checks for a fee, either through DolEx or another local check cashing partner they work with. However, it‘s best to call your local UPS Store ahead of time to ask about this service, as it‘s not available everywhere and may have certain restrictions.

So while you can‘t get the exact equivalent of a money order at UPS, you do have a few options for handling financial transactions, especially if you don‘t have access to traditional banking services. Just be aware that the fees for prepaid debit cards, check cashing and bill payments may be a bit steeper than buying a money order.

When to use a money order

Now that you know where to get a money order and some similar alternatives, let‘s talk about a few common scenarios when you might opt for a money order over other payment methods:

  1. You need to send a secure payment through the mail. Money orders offer protection against loss or theft compared to mailing cash or a personal check. For example, if you‘re paying a security deposit on an apartment or settling a debt with someone in another state, a money order can ensure the funds arrive safely.

  2. You don‘t have a checking account. Roughly 7% of US households are "unbanked," meaning they don‘t use traditional deposit accounts at all. Low-income individuals, young adults just starting out, and recent immigrants are more likely to fall into this category. For them, money orders can be an easy way to make important payments without needing to qualify for a bank account.

  3. You want to keep your banking information private. Even if you do have a checking account, there may be some merchants or individuals who you‘d rather not give your account number to. Money orders reveal nothing about your finances to the recipient, only the issuer knows the source of the funds. This can be useful for one-time transactions or if you‘re not sure about the security of the recipient.

  4. You want to control the payment amount. One risk with personal checks is that the recipient could potentially alter the amount to be greater than what you intended. They‘d be committing fraud in doing so, but money orders eliminate this risk entirely. Once you purchase the money order, the payment amount cannot be changed by anyone.

  5. You‘re giving a monetary gift. If you want to give someone cash for a special occasion but don‘t want to carry a wad of bills, a money order can be a more formal and secure way to do so. Just be aware that some issuers may put a hold on money order deposits, so the recipient may not be able to access the funds immediately.

As you can see, money orders have some distinct advantages over other payment methods, even in our increasingly digital and card-based economy. They‘re not the fastest or most high-tech option, but for certain situations, getting a money order is your best move.

Other UPS money services

We‘ve covered why UPS doesn‘t offer money orders and the useful services they provide instead, like prepaid cards and bill pay. But there are a few other money-related services you can access at select UPS Store locations:

  1. ATMs. Some UPS Stores have in-branch ATMs where you can withdraw cash from a debit card or credit card. Fees will depend on whether UPS‘s ATM is in your bank‘s network. This can be a convenient way to get cash to make other transactions at UPS without making a separate trip to a bank branch.

  2. Coin counting. Have a pile of loose change you want to convert to bills? Certain UPS Stores have coin counting machines, similar to Coinstar, that will sort your coins and give you cash back for a percentage fee. This can be an easy alternative to coin rolls from the bank.

  3. FedEx money orders. While UPS doesn‘t handle money orders directly, some locations have a counter for FedEx within the store, and FedEx does offer money order services. So you may be able to kill two birds with one stone by visiting a combination UPS/FedEx location, but the money order itself will be handled by FedEx, not UPS.

Again, these bonus services will vary by location, so it‘s wise to call your local UPS Store to ask what money services they have available.

The bottom line on UPS money orders

By now you should have a clear understanding of UPS‘s stance on money orders and your options for obtaining and using them elsewhere. In summary:

  • UPS does not sell money orders or allow you to cash money orders at any of its locations. This is because money orders don‘t align with UPS‘s core business as a shipping and logistics provider.

  • You can easily purchase a money order with cash or a debit card at many grocery stores, drugstores, convenience stores, banks, credit unions, and post offices. Look for the customer service desk or money center. Fees are typically quite low, less than a few dollars per money order.

  • To cash a money order, your best bet is to deposit it at your bank or credit union. You can also cash it at the same chain of locations that issued the money order, but you may face a fee for this service.

  • If you don‘t need a money order specifically, consider a prepaid debit card, walk-in bill payment, or check cashing from select UPS Store locations as alternatives for sending and receiving funds securely without a traditional bank account.

  • Money orders are useful payment tools for mailing funds safely, keeping transactions private, and gifting money. However, getting the payment to the recipient will be slower than digital payment options.

Whether you choose to get a money order from your neighborhood grocery store or opt for one of UPS‘s other secure financial services, you now have the knowledge you need to make payments with confidence at thousands of trustworthy businesses across the country. Happy transacting!