International money orders can be a convenient way to receive money from overseas. The sender converts the money from the local currency to American dollars and purchases a money order. Although this can take longer than a wire transfer, you can avoid many of the fees associated with wire transfers. Cashing an international money order is easy to do.
You can deposit an international money order to your bank account in the same way that you would deposit a check or another money order — sign the back and deposit it through an ATM or at the counter. Though the person has paid cash for the money order, your bank will probably place a hold on the money for a few days due to potential fraud. The time of the hold varies by bank.
Video of the Day
If you want to receive cash directly rather than depositing it into your account, you will have to do it at a check cashing store or at the location where the money order was issued, if there is one available in your area. You will have to pay a fee to cash your international money order. Not all check cashing stores will cash an international money order.
Cashing From Abroad
If you are living and working abroad, international money orders can be an effective way to send your money back home. After you've purchased the money order, you can send it directly to your home bank account. Include a letter with your account number or a deposit slip to ensure that the bank deposits it to the correct account.
Money Order Scams
It's become common for people to fake money orders, which is why banks often place a hold on the deposit. One of the surest signs of a scam is when people offer you a money order for more money than they should and ask you to send them the difference in cash. By the time your bank realizes that the money order was a fake, the scammer already has your money.