Cash a money order?

You cannot cash it.  You would have deposit it into your bank or investment account.  A hold will be put on it for probably 10 - 14 days, AFTER which time, the money will be available to you.

Your bank may require you to deposit the money order and place a hold on the amount until they collect from the issuer. If they won't accept it at all, the company is fake.

If BOTH Wal-mart and Kroger refused the money order, I BET it is a well known scam.

Your bank should cash it for you, provided that the money order company is legitimate.

If you have enough in your bank account to cover the amount of the money order, they will cash it. Otherwise you'll have to deposit it and wait for it to clear.

Ask your bank to DEPOSIT it.  They might be skeptical about it, so even if they "cash" it, they're just withdrawing from your account if it bounces.  If your current account balance does not exceed the value of the MO, I doubt they will even consider cashing it.  

Also, is it in your name, same name as on the bank account?

Try the bank. If they won't cash it, then ask if you can deposit it at the bank, and when the funds will be available for you to withdraw.