Do you really know what remittances are? They are international money transfers made by people living and working abroad to family members or recipients in their home country.

For Latin American immigrants living in the United States, sending remittances is a crucial matter, as is having efficient financial services that allow them to send money to their families and friends quickly, safely, and at low cost.

According to recent sources, the flow of remittances from Mexico to the United States fell 12.4% year over year, which is attributed to recent immigration measures imposed by that country. For this reason, it is important that migrants have international money transfer services that understand their needs.

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Why Do People Send Remittances?

For the families of migrant workers in the United States, remittances represent much more than a simple transfer of money, as they often become the main support for millions of people in Latin America.

These Are the Main Reasons to Send Remittances:

Household expense support (rent, utilities, food)

This category includes basic expenses such as food, rent, utility payments, and everything related to daily costs, highlighting the importance of remittances for recipient families.

Education and study tools

Includes payment of tuition, school supplies, transportation, preschool fees, and computing tools such as laptops or desktop computers.

Health and family emergencies

If any family member requires specialized medical care, remittances play a central role in covering hospitalization, medications, treatments, and more.

Targeted savings (e.g., family home improvements)

It is also common for migrants to use remittances to build or renovate their family homes, thereby improving their quality of life.

Unexpected expenses during travel or temporary stays

Remittances may also be useful to cover unexpected travel expenses, related to unforeseen illnesses, flight cancellations, or unplanned charges.

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How Do Remittances Work and What Options Exist?

Currently, there are several remittance service options you can rely on to send money to your relatives.

Traditional banks, such as Bank of America and Wells Fargo, allow you to make remittance transfers through their digital banking services or directly at branches.

There are also specialized sending agencies, such as Western Union, one of the most widely used and longest-standing remittance services in the United States, with a global presence in more than 200 countries.

The information that traditional banks and agencies will generally require to send money includes:

• Beneficiary’s full name

• Beneficiary’s account number

• SWIFT code

• Receiving country

• Amount and currency

Finally, you can choose digital platforms, which allow you to send money through mobile apps and, in general, offer more competitive options regarding costs and delivery times.

Común is one of these platforms, integrating the fintech experience with various benefits, such as a digital account and an easy to use mobile app, that is available in Spanish. Común accepts more than 100 qualified official IDs from your country of origin to open an account and offers different options for receiving money: into a local bank account or cash pickup. With Común, send money to your relatives for clear and competitive rates, from $2.99 ​​USD and send up to applicable limits.

These Are the Characteristics of Each Available Remittance Sending Option:

Traditional Banks

Traditional banks are a safe option to send money through wire transfer. The advantage is that they are fully established institutions in the U.S. financial system.

However, they have certain limitations, such as high fees, which can reach 60 USD depending on the bank. Additionally, transfers also tend to be slower, taking up to 5 business days.

To access this service, it is necessary to open a bank account at a traditional U.S. bank, or resort to sending cash directly at a branch.

Money Sending Agencies

Specialized agencies for international money transfer, such as Western Union, are also a reliable alternative you can use.

However, fees are usually high and exchange rates less competitive, similar to traditional banks. Although delivery times tend to be shorter.

Digital Platforms

If you are looking for an option to make international bank transfers, digital platforms are a great option. In addition to more accessible opening requirements, they offer far more competitive fees compared to the two previous alternatives.

Remember that Común offers you a comprehensive digital platform to connect with your loved ones in a simple and fair way.

Costs, Timeframes, and How to Save When Sending Remittances

The cost of sending remittances depends on three main factors:

• Sending fee: this is the commission charged by the provider for offering its sending services. This amount varies depending on the method, amount, receiving country, and involvement of intermediaries. The fee may be variable or fixed. One option is to choose a service with a fixed fee, to avoid paying more than expected.

• Exchange rate: a common practice among remittance services is not using the real market exchange rate, but adding a margin that reduces the total amount to be received.

For example, if the dollar price is 18 Mexican pesos, and the remittance service offers it at 17.50, when sending 500 USD, the total amount to be received will be reduced by 250 pesos.

• Possible charges to the recipient: Some traditional banks may charge fees for receiving transfers from foreign countries, so it is important to also verify the recipient’s conditions.

Good Savings Practices for Sending Remittances

To ensure your family receives the maximum amount possible, we recommend following these tips.

Check if there are margins in the exchange rate

The ideal choice is a provider that uses the real exchange rate or as close as possible. Otherwise, your recipient will receive a significantly smaller amount.

Prefer fixed and transparent fees

Understanding sending fees can be confusing, since several services use ranges that vary according to numerous criteria. The recommended approach is to look for a provider that offers fixed fees and with no hidden costs.

Always compare the amount received (not just the fee)

Remember that, in addition to the sending fee, you must consider the exchange rate and how much the amount to be received is reduced after applying this margin.

Avoid data errors to prevent delivery delays

Check your recipient’s information and make sure it is written correctly.

Consider the sending time and holidays in both countries

In many cases, transfers may be delayed if they are made on weekends or on holidays in either country.

Use platforms with support available in Spanish to resolve questions quickly

It is important to choose a service capable of answering your questions in your language and understanding your needs as a migrant.

Get Ready to Start Sending Remittances with Común

Every month, millions of dollars are sent from the United States to Latin America, representing an emotional and financial bridge between immigrant families and their homes, for whom remittances are a primary source of income.

Before choosing a remittance service, don’t forget to check the total amount your household will receive, considering the fee, exchange rate, and possible receiving charges. We recommend choosing a financial solution with transparent costs, support available in Spanish, and you can open your account with qualifying official ID from your country of origin.

Discover Común, the comprehensive platform that offers you low fees, with fees starting from $2.99, and send up to the applicable limits, and support available in Spanish. Open your account today and connect with your loved ones, send them money transparently.

Frequently Asked Questions (FAQ)

What happens if I don’t claim a remittance?

Remittances usually have a validity period established by the provider. Once that period expires, the money is not lost but the transaction may be canceled. In such cases, the sender may reissue it or request a refund depending on the provider’s policies.

What is the difference between a remittance and a transfer?

The main difference between the two lies in their intended purpose. Remittances are money transfers with a personal motive, commonly used to send money to relatives in other countries, whereas the purpose of a bank transfer can vary, ranging from commercial to personal payments, among others.

Have you heard of Venmo? It is a digital payment application that has gained popularity in the United States in recent years. According to recent data, in 2024 the mobile application reached 68.3 million active users, representing an 8.8% increase compared to 2023.

The importance this mobile application has acquired cannot be denied, which is why knowing what Venmo is in the United States can be very useful to send and receive money from family and friends quickly and securely.

As a foreign national living in the U.S., you must ensure that you choose a financial platform that meets your needs for sending money to your home country and making payments with ease.

In this guide, we clarify all your potential questions about how to use Venmo in other languages like Spanish, what it is for, the requirements to open an account, the benefits this mobile app offers, and also its limitations.

What Is Venmo and How Does It Work?

Venmo is a highly popular P2P (peer-to-peer) payment mobile application in the U.S. Its primary purpose is to facilitate the instant transfer of money between friends and family, in addition to allowing users to link bank accounts and cards.

Venmo’s business model is based on charging fees for services such as credit card transactions, instant transfers of money to bank accounts, and transactions using its physical card.

Some of the most common reasons immigrants use Venmo include:

• Paying monthly rent
  
  
• Receiving wages from occasional jobs
  
  
• Paying or receiving money from friends and family
  
  
• Lending or repaying money to acquaintances
  
  

Key Features of Venmo: What Can You Do With It in the U.S.?

To fully understand what Venmo is in the United States, it is important to explore the functionalities this P2P payment service offers its users to simplify their lives:

• Instant sending and receiving of money between Venmo users
  These are the mobile app’s most important features, as it allows for instant transfers without charging a fee between Venmo users.
  It also enables adding notes or emojis to identify each transaction and the option to use the mobile app’s balance or a linked bank account.
  
  
• Use of Venmo Debit Card (Mastercard) for purchases
  Venmo also offers a physical debit card for making purchases at brick-and-mortar establishments. It is valid at any merchant that accepts Mastercard within the United States.
  Additionally, it includes an extra benefit: each purchase with the debit card accumulates cash back for greater savings.
  
  
• Direct deposit for wages and benefits
  You can use your Venmo account to receive your salary or other types of transfers. All you need is your personal QR code.
  
  
• Bank transfers to bank accounts
  Venmo offers two types of bank transfers: standard transfers, which are free and take one to three business days, and instant transfers, which incur a fee of approximately 1.75% and are completed within minutes.
  
  
• Payments to businesses and merchants that accept Venmo
  Another advantage of this service is the “Pay with Venmo” feature, which allows payments at physical or online businesses that accept Venmo.
  This streamlines transactions and enables you to use the balance deposited in the application directly.
  
  
• Social features: comments, “likes,” and bill-splitting
  Lastly, one feature that makes Venmo more appealing is the ability to add comments, likes, and emojis.
  This allows you to request payments from friends and family, add reminders, and split expenses among multiple users.
  
  
• Business profiles for companies
  Venmo allows small businesses and independent workers to create a business profile to receive payments directly into their account via username or QR code.
  
  

What Do I Need to Have Venmo? The Reality of Its Availability

Now that you know the benefits of this mobile application in detail, you probably want to learn the requirements to start using it.

Before learning how to pay with Venmo, remember that it only works in the United States.

These are the requirements to use Venmo:

• Have an Android or iOS phone
  As it is a mobile application, you must have a compatible Android or iOS smartphone and download the mobile app from the corresponding store.
  
  
• Register with a personal phone number
  To register in the mobile app, you need a U.S. phone number and must reside in the country, as Venmo is only available there. You may also register with an email address.
  
  
• Link your U.S. bank account
  Linking a bank account isn't required to create your Venmo account; you can receive money and pay with your balance or a card. However, most features require a linked bank account.
  
  
• Link a debit or credit card
  Another option to access all Venmo’s features is linking a credit or debit card instead of a bank account. This allows you to use the card’s balance for transactions directly from the mobile app.
  
  
• Verify your account
  Account verification is required to access all Venmo features, to confirm users’ identities. Verified users can send up to $60,000 per week, but only if their SSN or ITIN has been confirmed. Non-verified users can send up to $299.99 per week.
  
  

To verify your account, Venmo will request the following:

• Full legal name
  
  
• Mailing address in the United States
  
  
• Date of birth
  
  
• SSN (Social Security Number) or ITIN
  
  

How to Transfer Money from Venmo to My Bank Account?

To transfer money from Venmo to your bank account, once it is linked and verified, follow these steps:

1. Log into your account through the mobile app and go to the “Me” tab.

2. Press the “Transfer” or “Add” button.

3. Enter or edit the amount you want to transfer to your bank account.

4. Select the transfer method: “Instant” or “up to 3 biz days,” noting any applicable fees.
5. Confirm the transfer details and complete the process.

If you want more options for depositing money into another person’s account, do not miss these recommendations.

Limitations of Venmo for Immigrants: Why Is It Not a Complete Solution?

The need for immigrants to have an integrated solution allowing access to digital payments, transfers, and other benefits increases daily. Therefore, while Venmo is a popular option for sending and receiving money in the U.S., it may present limitations for immigrants working in the country.

One limiting factor for immigrant communities is the language barrier in customer support. Because it is a service designed for U.S. residents, it is not optimized for people who speak a different language, such as Spanish. In addition, you should have a U.S. bank account.

Your best option may be to entrust your financial assets to a service offered in your language.

Comun: An Excellent Alternative to Venmo for the Immigrant Community in the U.S.

We present Comun, the solution for immigrants seeking to improve the way they send and receive money to family and friends.

Why Is Comun a Great Option for Immigrant Communities in the United States?

• Comun allows you to open an account with the official identification from your country.
• It is also a platform available in Spanish without complicated terms.
  
• Unlike Venmo, Comun enables you to send remittances to LATAM for an affordable fee starting at $2.99, subject to applicable limits.
  
• Access a mobile application to perform your transactions from the palm of your hand.
  

If you think accessing quality financial services in the U.S. is impossible for immigrants, open your Comun account today and forget about complications.

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Disclosures:

“Comun is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank; Member FDIC. The Comun Visa® Debit Card is issued by Community Federal Savings Bank, pursuant to a license from Visa U.S.A Inc. and may be used everywhere Visa Cards are accepted.”

“Funds in your account are FDIC insured up to $250,000 by ownership category through Community Federal Savings Bank (CFSB), Member FDIC, in the event CFSB fails.”

“A service provided by Service UniTeller, Inc. Service UniTeller, Inc. is licensed in all states that require a license.”

“Remittance fees start at $2.99 but may vary. Please check the app for more details.”

“Comun Inc. may earn revenue from the conversion of foreign currencies.”

“Direct deposit funds are typically available when we receive the payment file, up to two days before the scheduled payment date. This early availability is not guaranteed.”

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In a world where financial stability is crucial, Común stands out as a beacon of innovation in the traditional banking industry. Partnered with trusted banks like Community Federal Savings Bank, both FDIC Members, Común offers a secure foundation¹ for managing your finances. Here's how Común is changing the game for its customers and anyone seeking financial freedom and inclusion.

Partnered With Trusted Banks for Maximum Security

Común isn't just a fintech company¹ — it's a mission-driven platform designed to enable upward mobility through financial services. When you deposit with Común, you're guaranteed the same security as a traditional bank account, with deposits insured up to $250,000¹, ensuring financial stability for you and your family.

Safe and Fast Remittances

For many immigrant families and others, sending money back home to loved ones is essential. Común makes this process safe and fast, letting you meet your financial obligations with confidence. Licensed through Service UniTeller, Inc.⁴, Común ensures your remittances reach their destination quickly, giving you a better shot at financial stability.

Real-Time Notifications and Early Access to Funds

Stay informed with instant notifications — every transaction, every sign of activity is reported to you, giving you peace of mind. Común's unique early-access-to-payroll-deposits³ feature lets you manage your cash flow effectively, turning hard work into visible results sooner.

Visa-Enabled Security Worldwide

Común's Visa® debit card¹, processed through Visa USA Inc., ensures global acceptance and trust. Whether you're shopping locally or internationally, Común's banking solutions go with you everywhere, keeping your funds safe wherever you go.

Designed for Members' Unique Needs

Común is deeply committed to financial inclusion, designing products that meet the unique needs of its members — especially those who are just starting out or who struggle to connect with traditional banking channels. From simple account setup to learning how to manage your finances, Común is with you every step of the way.

Building a Community of Trust and Mobility

Común's mission goes beyond simple banking services — it's about building a community and helping millions of people navigate the complexities of financial systems. By offering tools that help you learn and grow, Común supports your journey toward achieving financial freedom.

Conclusion: Común

Común customers aren't just opening a bank account — they're joining a community dedicated to building financial stability and shaping a future where every hardworking person deserves a shot at upward mobility. Download the Común app this week to start your journey toward financial freedom, equipped with the best tools to help you navigate, connect, and thrive.

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What Are Money Transfers?

Money transfers are transactions where money moves from one person or entity to another, which can happen within the same country (domestic transfers) or across international borders (international transfers). These transactions can be handled through several methods, including:

• Bank Transfers: Money is sent from one bank account to another. This can be done through direct bank-to-bank transactions, wire transfers, or Automated Clearing House (ACH) transfers, with ACH transfer standing out as a common, cost-effective method for bank transfers.
• Online Payment Services: Platforms like PayPal, Venmo, and others let users send money electronically over the internet. Users generally link their bank accounts or credit cards to the service to fund transfers.
• Money Transfer Services: Companies like Western Union and MoneyGram specialize in transferring funds quickly, both domestically and internationally, without needing bank accounts. Money can be sent and received in person at service locations or through online platforms.
• Mobile Payments: Services built into smartphones, like Apple Pay or Google Pay, let users send money directly to others through mobile apps.

In a typical money transfer, the sender chooses a transfer method, provides the recipient's details (like bank account number, email, or phone number), and pays the transfer amount plus any applicable fees. The service then processes the transfer, converting funds into the recipient's currency if needed, before disbursing the money either directly to the recipient's bank account or making it available for pickup at a local service branch. Understanding the types of money transfers is crucial, since it highlights the range of options available to customers, including bank transfers, online payment services, and mobile payments, each with its own set of possible fees and considerations for domestic or international transfers. These transfers are governed by various financial regulations to prevent fraud, money laundering, and other illegal activity, ensuring the transaction's security and reliability.

Types of International Money Transfer Fees

When initiating a money transfer, consumers face several fees, crucial for managing financial commitments like a down payment or regular savings contributions. Flat fees and percentage-based fees are common in both domestic and international transfers, impacting everything from sending money to relatives abroad to paying international suppliers. Currency conversion fees play a significant role when transferring foreign currency, since they can reduce the amount received due to unfavorable exchange rates. Additionally, some banks offer lower currency conversion fees if you let them convert the funds before transferring, or if you provide the currency already converted. They may also offer lower fees for transfers sent in foreign currency and for recurring transfers, highlighting the importance of currency exchange in a transfer's total cost.

Third-party service charges, like intermediary banks or platforms such as Western Union, can also add up, especially in complex scenarios like international wire transfers where multiple financial institutions may be involved. Different banks or financial institutions have their own fees for money transfers, including fees for incoming and outgoing fund transfers. Consumers may face fees for incoming transfers and incoming wire transfers, which vary between financial institutions for both domestic and international transfers. Understanding these different fees helps users evaluate money transfer options more effectively, emphasizing the distinction between incoming and outgoing fees and the impact of currency conversion on total cost.

Click here if you want to learn how to make international transfers. We'll give you all your options and our tips.

Click here and we'll explain everything you need to know about bank accounts in the U.S.

Comparing Costs Across Different Transfer Services

Costs to transfer money can vary widely between services like traditional banks, which may offer lower fees for ACH transfers compared to outgoing wire transfer fees, and digital platforms that specialize in international money transfers. It's crucial to compare how different services transfer funds, including banks and online platforms, to understand the range of methods available and their associated costs and fees for both domestic and international transfers. For example, banks charge different fees for incoming and outgoing wire transfers and may offer incentives like free wire transfers for maintaining certain account types, like checking or savings accounts.

Online platforms may offer competitive rates for international transfers but could include additional fees based on the transfer amount or speed. Encouraging the use of an online calculator, if available, can help consumers find the best deal by comparing the total costs associated with each service, considering both domestic and international options.

Impact of Payment Methods on Fees

Choosing the right payment method can significantly affect the fees incurred during a money transfer. For example, credit cards may involve higher fees when used for international money transfer charges due to processing fees and interest rates, while direct bank transfers from a checking account may offer lower fees for transferring money internationally.

Cash transactions, especially through services like Western Union, are immediate but may carry higher fees, particularly for in-person transfers. An international transfer, on the other hand, may incur additional charges related to exchange rates and fees specific to the services facilitating these transactions, like MoneyGram, Revolut, Wise, and Payoneer. Each method, from wire transfers to ACH transfers, has its own set of pros and cons, influencing the total cost and speed of the transaction. It's vital to understand these differences to choose the most cost-effective method for sending money both internationally and domestically.

How Currency Fluctuations Influence Transfer Costs

Exchange rates fluctuate, impacting the cost-effectiveness of international money transfers. The mid-market rate is the fairest rate but is often marked up by financial institutions to cover their services, affecting the amount of foreign currency received. For those who transfer money internationally on a regular basis, using tools that track exchange rates or opting for a money transfer service that offers rate locks can provide savings.

Strategies like monitoring the Federal Reserve's wire transfer network and exchange rate trends, or choosing moments of favorable currency strength, are essential for those who need to manage international bank account numbers or business transactions involving foreign partners.

Tips to Save Money and Reduce Transfer Fees

In today's world, efficiently managing money transfers is crucial, whether sending funds domestically or internationally. Understanding how to minimize fees can save you a significant amount of money over time. Here are some strategic tips for reducing transfer fees and making sure you get the most out of your transactions:

• Consolidate Transfers: Combining multiple small transfers into one larger transaction can significantly reduce fees, since many financial institutions offer lower fees for larger amounts.
• Explore Fee-Free Options: Research services that don't charge transfer fees or that offer a loyalty program that reduces or even eliminates certain fees for regular customers.
• Negotiate Fees: Contact your bank or transfer service to discuss personalized rates. Frequent users transferring large sums may have leverage to negotiate better terms.
• Timing Flexibility: When you make transfers can affect the fees you pay. Be flexible about when you send money — sometimes waiting for a less busy transfer period can result in lower fees.
• Choosing the Right Transfer Method: Use online transfer options whenever possible, since they can be more affordable than in-person transfers. For domestic transfers, consider using direct bank transfers or ACH transfers, which typically carry lower fees than wire transfers.

[⚠️ FLAGGED PARAGRAPH — translated faithfully below, but this mixes DDA account-opening with international remittance pricing in one paragraph and directly compares price against competitors. Recommend splitting into two separate paragraphs/sections before publishing, per your DDA/Remesas separation rule:]

You can also open a Común account, which offers a variety of transfer methods at low or no cost. Our customers can send international money transfers starting at $2.99, a fraction of what competitors charge, and get the added benefit of opening a U.S. bank account.

By adopting these strategies, you can effectively reduce the costs associated with money transfers. Always be sure to read the fine print and watch out for hidden fees. With the right approach, you can get the most out of your financial transactions and make sure more of your money reaches its intended destination.

Conclusion

In conclusion, understanding the many fees associated with money transfers is essential for anyone looking to manage their finances efficiently, whether for personal or business purposes. This article has explored the various types of fees, from flat and percentage-based fees to currency conversion fees and service charges, highlighting how they can affect your transactions. It has also provided insight into how to compare costs across different services, the impact of payment methods on fees, and how currency fluctuations influence transfer costs. Most importantly, it offered practical strategies for minimizing these fees, like consolidating transfers, negotiating better rates, being flexible with timing, and selecting the most cost-effective transfer method.

Armed with this knowledge, you can make more informed decisions, potentially saving a significant amount of money and avoiding unnecessary costs. Remember, the key to maximizing the value of your transfers lies in a deep understanding of fee structures and choosing the right strategies to mitigate these costs. As you navigate the complex world of financial transactions, take proactive steps to educate yourself and explore all available options to make sure your money works harder for you.

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When you open a bank account, you receive a unique identifier known as a bank account number. This number is crucial for ensuring financial transactions like deposits, withdrawals, or transfers are routed to the correct account within the banking system. This article will dig into what your bank account number represents, how it's structured, and its importance in your financial activities.

What Is a Bank Account Number?

A bank account number is a unique sequence of digits assigned to an account holder by a financial institution. It works much like a physical address for your account within the broader network of financial institutions, distinguishing your account from others and ensuring transactions are recorded accurately.

Structure of a Bank Account Number

The structure of a bank account number varies by financial institution and country, but generally includes several key components:

1. Bank Code/Institution Number: Identifies the specific financial institution. This code is nationally recognized and crucial for routing related banking transactions.
2. Branch Code/Sort Code: This digit sequence identifies the exact bank branch where your account was established, essential for internal fund routing and operational clarity.
3. Account Number: This is the unique identifier for your personal account within the bank. It's critical for distinguishing your account among millions of others within the same bank.
4. Check Digits: Often included in account numbers to provide error-checking capabilities, these help ensure numbers are entered correctly and transactions are routed accurately.

Importance of Your Bank Account Number

• Transaction Accuracy: Your account number is vital for accuracy in financial transactions, ensuring money is sent or received correctly, whether you're setting up direct deposits, managing bill payments, or executing other bank-related financial transactions.
• Security: The uniqueness of your account number adds a significant layer of security, protecting against fraud and ensuring funds aren't misdirected.
• Financial Management: Understanding and managing your bank account numbers, whether for checking, savings, or other account types, helps with efficient financial management and security measures like preventing identity theft.
• International Transactions: For transactions beyond domestic borders, the international bank account number (IBAN) and bank identification code (BIC) are used alongside your account number to facilitate international payments and identify relevant financial institutions globally.

Managing Your Bank Account Number

While a bank account number is a powerful tool for managing financial transactions, it also requires careful handling:

• Keep It Confidential: Treat your bank account number with the same level of security as sensitive data like your Social Security number. Avoid sharing it publicly or through unsecured channels.
• Monitor Your Accounts: Regularly review your bank statement and transaction history through online banking platforms to catch any unauthorized activity early.
• Use Secure Networks: Make sure any online banking is done over secure, encrypted connections. Public Wi-Fi is vulnerable and can expose your banking information to theft.
• Familiarize Yourself With Your Bank's Protocols: Knowing your financial institution's security protocols is crucial. This includes everything from routing numbers for paper checks to using multi-factor ID to grant access to online accounts.

Your bank account number is more than just a sequence of digits — it's a crucial part of your financial identity, essential for directing and protecting the flow of your money. By understanding how your account number works and implementing robust security measures, you can secure your financial health and keep your funds safe. Whether you're receiving a paper check, setting up a direct deposit, or making online transactions, the integrity of your bank account number is paramount.

Things to Know: Bank Account Number vs. Routing Number

Bank account numbers and routing numbers are both critical components of the banking system, but they serve different purposes and have distinct characteristics. Understanding the difference between these two numbers is important for handling financial transactions effectively. Here's how they differ:

A bank account number uniquely identifies an individual's personal account within a bank. It specifies where funds should be deposited or withdrawn.

• Every Number Is Different: Each bank account number is unique to the account holder within a particular bank. No two accounts at the same bank share the same account number.
• Length and Structure: The length and structure can vary by bank and country, typically ranging from 8 to 12 digits in most countries. Some countries may use longer formats.

A routing number (also known as a sort code in some countries) identifies the bank itself, and sometimes the branch where the account is held. It's used to route money transfers like direct deposits and bill payments to the correct bank.

• Consistency: A routing number is consistent across all customers of a bank branch, or even the entire bank, depending on the institution's size and the country's banking system.
• Length and Structure: In the United States, for example, routing numbers are 9-digit codes established by the American Bankers Association. In the UK, similar numbers called sort codes are 6 digits long and formatted in three pairs.

Additionally, the geographic validity of these numbers varies. A bank account number is valid across the entire bank and doesn't change even if the account holder moves to another branch, unless the banking system specifies otherwise. A routing number, on the other hand, is often specific to a region or branch, particularly in larger banking systems like those in the United States. This specificity helps manage and route payments accurately within the complex network of branches and banks.

When setting up processes like automatic bill payments or direct deposits, both numbers are generally required. The routing number first guides the payment to the correct bank or branch, ensuring the institution is properly identified. The bank account number is then used to route the funds to the individual's specific account. Together, these numbers work to streamline financial transactions, making them secure and efficient across the banking network.

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Conclusion

In conclusion, understanding the purpose of your bank account number is crucial. This also comes with understanding its distinction from a routing number to effectively manage your finances and ensure the security and accuracy of your transactions. A bank account number serves as a unique identifier for your specific account within a financial institution, playing a vital role in correctly directing funds, whether for deposits, withdrawals, or automatic bill payments. A routing number, on the other hand, identifies the financial institution and sometimes the specific branch, essential for routing transactions to the correct bank.

The geographic validity of these numbers — where the bank account number stays constant across branches while the routing number can vary by region or branch — highlights the complexity and structured approach banks use to manage and route payments. Both numbers are indispensable in modern banking, from setting up direct deposits to processing paper checks and making secure online transactions.

By maintaining a solid understanding of how these numbers work and applying rigorous security measures, like keeping your information confidential and monitoring account activity, you can protect your financial health and ensure your banking interactions are both smooth and secure. This knowledge not only empowers you to manage your accounts more effectively, but also protects you from potential fraud and errors in an increasingly digital world.

In this article, we'll walk you through the advantages and requirements of having a debit account in the United States. It's worth noting that the world's financial center is New York, home to the most important payment hubs where the world's top-ranked financial institutions are connected. That's why having an account in the United States is essential if you do business globally.

Why Having a Debit Account in the United States Matters

Here are the advantages of having a debit account in the United States and what it means to have one — among the most notable benefits:

Cost: The cost to open an account in the U.S. is actually minimal, largely thanks to the digital account types available today. This gives you the ability to handle financial transactions smoothly with the people you want to do business with.

Requirements: Requirements are usually basic, as long as you're of legal age and have some form of address documentation. If you're a foreigner, it's possible to open an account in the United States without a long list of requirements or needing to be physically present.

Control: You can track fees, deductions, and payments made through the platform — for that, we recommend reading: How to Manage My Money in a Debit Account.

Ideal for Freelancers: If you do remote work, global companies typically require an account on some payment platform. For that, you'll need a U.S.-based account. That's why it's worth opening one, so you can meet the requirements of that payment platform.

Security: You get the security that comes with U.S. regulation. On top of that, funds are protected by the Federal Deposit Insurance Corporation (FDIC).

Options: There's a wide variety of ways to get a U.S. account, and among the main options is starting with a debit account, which offers alternatives for people who want an account without being a U.S. resident.

General Requirements to Open an Account in the United States

The requirements listed here are for opening a general account — keep in mind that requirements vary by account type. Among the requirements U.S. financial institutions typically ask for:

ID document: Issued by your country of residence's government (passport, national ID, or identity card depending on your country of origin).

Proof of residence: A current utility bill showing your physical address. It must include a zip code.

Email address: So the confirmation email can be sent this way if you open the account through a platform or app.

Mobile device: To authenticate transactions made through the bank's platform.

If you want to open an account in the United States, there are several options and account types available. Just choose the one that fits your needs, requirements, and that you can comfortably and securely meet the requirements for.

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Why was my bank transaction declined? Causes and solutions in 2026

Bank transactions are usually declined for one of these reasons: insufficient funds, daily transfer limits, suspected fraud, incorrect payment information, expired cards, or unusual account activity. In some cases, your bank may temporarily block a payment to protect your account, even if there's sufficient money available.

If your debit card, ACH transfer, ATM withdrawal, or online payment was rejected, the fastest solution is identifying whether the issue is caused by a transaction limit, a fraud alert, or a technical restriction on the account.

Top 10 reasons why your transaction was declined

1. Insufficient funds

This is still one of the most common causes. Even if you recently deposited money, funds may still be pending or unavailable. What you can do: check your available balance (not just current balance), review pending transactions.

2. Daily limit reached

Most accounts have daily transaction limits for debit cards, ATM withdrawals, and ACH transfers. What you can do: verify your limits in your bank's app or contact support.

3. Automatic fraud alert

Security systems may block transactions that seem unusual, such as purchases in a different location. What you can do: check if you received a confirmation SMS and respond to authorize the transaction.

4. Incorrect information

An incorrect card number, expiration date, CVV, or billing address can cause rejection. What you can do: verify the information entered and correct it.

5. Expired card

If your card has expired, transactions will be automatically rejected. What you can do: request a replacement card from your bank.

6. Blocked account

Your account may be temporarily blocked due to suspicious activity. What you can do: contact your bank directly.

7. Unsupported merchant

Some merchants or purchase types may be restricted by your bank. What you can do: use a different payment method or contact your bank.

8. Monthly ACH limit

ACH transfers have monthly limits in addition to daily ones. What you can do: verify your ACH limits and wait for the next cycle if you've reached them.

9. Inactive account

Accounts with no activity for an extended period may be flagged. What you can do: contact your bank to reactivate the account.

10. International transactions not enabled

Many debit cards don't come with international transactions enabled by default. What you can do: contact your bank to enable international payments.

Transaction types and their limits

Fraud alert vs. transaction limit: how to tell the difference

FAQ

Why was my card declined if I have money?

It could be a daily limit, a fraud alert, or a technical restriction. Check your bank's app or contact support for more details.

How do I check my transaction limits?

Most banking apps show transaction limits in the settings or transfers section. You can also contact your bank's support.

Común is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank, Member FDIC.

Alien Registration Number or A-Number: Everything you need to know if you’re in the United States

Immigrants living in the United States should become familiar with several terms and procedures to ensure their long-term stay in the country.

One way to compile all the information related to your immigration process is through the A-Number or Alien Registration Number. This identifier is assigned by the Department of Homeland Security (DHS) to foreign nationals residing in the country.

It’s very important to know this information, as it serves as the identification number for your immigration file.

In this article, we’ll explain what the Alien Registration Number is, what it’s used for, and why it’s so important for immigration procedures.

What is the Alien Registration Number (A-Number) and what is it for?

The first step to identifying an A-Number is knowing that it always begins with the letter “A” and contains 8 or 9 digits.

The main function of this number is to allow USCIS and other agencies to quickly track immigration cases and applications related to each person.

Here are some examples of when the A-Number is used:

• To track your permanent residence (Green Card) application.

• When you apply for a work permit (EAD).

• If you apply for an adjustment of status, your A-Number will be used to link your case file.

Where can you find the Alien Registration Number, and who receives it?

To locate your A-Number, you can check several official documents issued by USCIS or DHS, such as:

• Green Card

• Employment Authorization Document (EAD)

• USCIS notices

• Immigration court orders

Do you know the difference between an ITIN and an SSN? This article explains everything you need to know.

How to identify the A-Number

Below we break down how the A-Number appears on various official documents.

Document

Location

Permanent Resident Card

On the front, next to “USCIS#” or “A#.”

Work Permit (EAD) 

On the front

USCIS Notices

In the upper corner or near the applicant’s name

Immigration court documents

At the top of the document.

This is a unique number assigned only to individuals with formal and permanent files in U.S. immigration agencies, such as:

• Permanent residents (Green Card holders).

• Refugees or asylees.

• Adjustment of status or work permit applicants.

• Individuals with open cases before immigration court.

On the other hand, temporary visitors such as tourists, students, or non-immigrant visa holders do not receive an A-Number since their cases do not require a permanent immigration file.

Do you already have an ITIN in the United States? This article explains all the benefits of this identifier.

Why is the Alien Registration Number important in immigration procedures?

The A-Number is a central identifier used in multiple immigration procedures needed to regularize your status in the country.

Here are the most common uses of the A-Number in immigration processes.

Tracking immigration cases (USCIS Case Status)

If you want to track the status of your pending applications, such as permanent residence, work permit, or adjustment of status, you need to enter your A-Number in the USCIS Case Status system.

This way, you can know exactly which stage your case is in and stay informed of updates to ensure your process stays on track.

Updating personal information

It’s essential to keep your immigration records updated. If you change your address, phone number, or legal name, your A-Number will help you update your information.

This helps ensure you receive official notifications and avoid delays in important procedures.

Avoiding mistakes in immigration processes

Since the A-Number functions as a unique identifier, it also helps avoid confusion between applicants with the same or similar names.

Be sure to use your A-Number correctly when filling out forms or official documents so that all your information stays under the same file and saves time when searching for a document or specific information.

In short, this number helps simplify the immigration process for immigrants and provides a sense of security and control during procedures that can often cause stress and uncertainty.

What to do if you don’t have or don’t remember your A-Number

If you don’t have an A-Number, remember that USCIS assigns one once you start an immigration process in the United States. If you already have one but can’t remember it, follow these tips to locate it.

• Check your official documents, such as your Green Card, work permit, or any forms submitted to USCIS.

• Log in to your USCIS online account and check the “manage your case” section.

• Call the USCIS Contact Center at 1-800-375-5283, explain that you can’t find your A-Number, and ask for assistance locating it.

Avoid using a fake A-Number, as this could cause problems with immigration authorities.

Organize your immigration life while managing your finances with Comun

As you can see, the A-Number is essential to staying organized during immigration procedures. It helps keep your documents together in one file, making them easier to locate and reducing the risk of delays caused by mistakes.

Another important aspect of immigrant life in the U.S. is having the right tools to keep personal finances organized.

Meet Comun, the platform designed to help immigrants manage their finances with ease.

Here are some of the benefits Comun offers:

• Open an account with a qualifying official identification from your home country.

• Send money to several countries with clear and competitive fees, up to the applicable limits.

• Access support in both Spanish and English.

Want to discover a truly fair and accessible financial service? Open your Comun account today!

Just as your A-Number helps you keep your immigration documents organized, Comun helps you maintain your financial stability in the United States.

Frequently Asked Questions (FAQ)

If you still have questions, check out our FAQ section.

What is the USCIS number? Is it the same as the A-Number?

The USCIS number appears on your permanent resident card or work permit. It’s actually the same identifier as your A-Number, which appears on these documents preceded by “USCIS#.”

What is the Alien Number?

The Alien Registration Number is the official name for the A-Number assigned by DHS or USCIS to individuals who are not U.S. citizens, allowing them to track their immigration process through a unique file.

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What is a certified check and how does it work?

Certified checks are a common form of payment for thousands of immigrants living in the United States, especially for major purchases such as rent payments, buying a car, and legal settlements.

However, it is not always clear why the certification process matters and how it differs from other types of checks.

A certified check is a physical payment order that has been reviewed in advance by a financial institution to ensure there are sufficient funds in the issuer’s bank account. This is the fundamental reason it’s considered a safer form of payment than a personal check.

Below, we explain in detail what a certified check is, how it works, and why it’s important to understand the differences from other types of checks.

What is a certified check?

A certified check is a type of check with guaranteed funds, since the issuing bank has verified the money exists in the checking or personal account.

This makes it a safer form of payment than personal checks, because the bank sets aside the amount to be paid so it can be collected by the payee.

How is a certified check issued?

Issuing a certified check is a straightforward process you can complete directly at the financial institution of your choice.

• The customer requests the check

The account holder must go to a bank and request a certified check, specifying the payee and the amount.

• Customer identification

You must present an official ID to verify that you are the holder of the savings or checking account from which the funds will be drawn.

• The bank freezes the amount in the account

The bank then certifies there are sufficient funds to cover the check and freezes them to ensure the payee can cash it.

• Signature certification

You must sign the check before finishing the process so the bank can confirm the signature matches the one on file.

Affixing the certification stamp

Finally, once the bank has verified the funds and the signature, it places a certification stamp to document completion of the process.

Differences between a certified check and a cashier’s check

A cashier’s check is another way to make secure payments using a physical instrument. In this case, the bank branch issues the check after receiving the customer’s payment, so the funds come from the bank itself.

Below is a comparison between a cashier’s check and a certified check.

Cashier’s check

Certified check

Security

High; the bank verifies sufficient funds and places a hold for the payee.

Very high; the check is backed by the bank and does not depend on the issuer’s account.

Cost

At some banks they have no cost at others up to approximately $15.

Depends on the bank; typically $10–$20.

Issuance time

At the branch, after funds are verified.

Immediate.

When is a certified check typically required?

A certified check is commonly used for significant transactions or large amounts. This gives the recipient assurance that funds are available.

• Paying an apartment security deposit.

When finalizing a lease or purchasing an apartment, the landlord or agent may request payment via certified check to guarantee funds.

• Buying a used car.

Whether dealing directly with owners or dealerships, a certified check can be a suitable option because of the security it provides.

• Closing an important contract or legal settlement.

For example, to pay fees, settlements, or indemnities, certified checks provide security for both parties.

• For tuition or school fees.

Some educational institutions accept certified checks as a form of payment, especially for international or first-time payments.

Do you know what to do if a check is stolen or lost? We explain it here!

Practical tips for using certified checks safely

While certified checks are among the safest payment methods due to the bank’s verification process, there are still fraud attempts using forged documents.

With this in mind, keep these tips in mind to avoid becoming a victim of check fraud.

How to know if a check has funds and avoid scams

• Verify with the issuing bank. 

Call the bank directly and provide the check number, account holder, and amount; ask them to confirm authenticity and that funds are guaranteed. Make sure you call the bank’s official number, not the one printed on the check.

• Be alert if you receive an overpayment check. 

A common scam is sending a check for more than the amount due and asking for the difference in cash. Confirm the check’s validity with the bank before proceeding.

• Wait for the check to clear before handing over any goods. 

Clearing can take 3–10 days. Make sure the funds have fully settled and are not just on hold.

• Avoid accepting checks from unknown parties. 

Whenever possible, accept checks only from people you trust. If you must take a check, follow the security measures above.

Manage your money securely with Común

In this article we explained what a certified check is, how it’s issued, how it differs from cashier’s checks, and how to use this payment method safely.

While certified checks can be a good payment option, a checking account in the U.S. is a much more secure and practical way to manage money.

Meet Común, your financial ally in the United States!

Send, receive, and cash money within and outside the United States. Our platform lets you move your money easily, quickly, and securely. You need a qualifying official ID from your country of origin to get started.

Open your account with Común today and discover a financial platform tailored to you.

Frequently Asked Questions (FAQ)

Where can I get a certified check in the United States?

You can request certified checks at financial institutions such as banks, credit unions, and some digital banks.

How much does it cost to get a certified check at the bank?

The cost depends on the bank but is typically between $10 and $15.

What other types of checks exist in the U.S. besides certified checks?

Other types of checks in the United States include: Money order; Personal check; Cashier’s check.

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How to call Mexico from the United States easily and affordably

There’s no doubt about the impact the Mexican community has had in the United States due to the number of immigrants who have arrived in recent decades and who, despite the distance, need to stay in touch with their loved ones.

One of the most common points of confusion when making an international call has to do with the order of the required codes. However, with the right information, placing a call from the United States to Mexico is very simple.

Below, we’ll show you step by step how to dial, practical examples for major cities, as well as modern options to save money no matter how long you’re on the phone with your loved ones in Mexico.

Basic steps to call Mexico from the USA

To connect a phone call from the United States to Mexico, you need three basic pieces of information: the exit code, Mexico’s country code, and the local number.

These are the steps to call Mexico.

Dial the international prefix

011 from a U.S. landline or “+” from a mobile phone.

Add Mexico’s country code

The code is 52.

Dial the 10-digit national number

Include the area code plus the local number

Practical examples:

• Mexico City: 011 + 52 + 55 123 1234
• Guadalajara: 011 + 52 + 33 123 1234
• Monterrey: 011 + 52 + 81 123 1234

It’s important to clarify that it used to be necessary to add the prefix 1 for cell-phone calls, but this requirement was eliminated in 2019.

Area codes and example calls to Mexican cities

In Mexico, each city has an area code (lada) made up of 2 or 3 digits. Taking that into account, all Mexican phone numbers have 10 digits in total.

Below is a table with examples of how to dial from the United States to Mexico.

City

Area Code

Dialing example from the United States

Mexico City 

55

011 + 52 + 55 + ########

Guadalajara

33

011 + 52 + 33 + ########

Monterrey

81

011 + 52 + 81 + ########

Puebla

222

011 + 52 + 222 + #######

Tijuana

664

011 + 52 + 664 + #######

León

477

011 + 52 + 477 + #######

Querétaro

442

011 + 52 + 442 + #######

Mérida

999

011 + 52 + 999 + #######

Cancún

998

011 + 52 + 998 + #######

Chihuahua

614

011 + 52 + 614 + #######

Modern and more affordable options for calling Mexico

Long-distance calling used to be very expensive, especially when made directly— a drawback for people who wanted to keep in touch with family abroad since costs were charged per minute.

Fortunately, today you can choose far more affordable alternatives that also offer unlimited minutes and other communication benefits such as messaging and video calls.

These are the most popular low-cost options for calling Mexico from the United States.

VoIP apps and services over Wi-Fi

VoIP (Voice over IP) apps are one of the most accessible alternatives for communicating with people worldwide.

The main advantage of mobile apps is that they allow domestic and international calls over a Wi-Fi or data connection. This significantly reduces costs and eliminates the need for local phone coverage, though a good internet connection is important.

WhatsApp is a popular app of this kind, given its large user base and a variety of features beyond calls, such as voice notes, voice dictation, video notes, and video calls.

Other similar alternatives include Skype, Google Voice, and Telegram.

International plans from your carrier

If you want to make long calls and not rely on Wi-Fi, a recommended alternative is to get an international plan with included or unlimited minutes to Mexico.

For example, Verizon Global Calling has a plan that includes unlimited minutes to Mexico and Canada.

If you’re still in Mexico, Telcel offers international roaming packages and eSIM for travelers.

Prepaid calling cards

Another solution for calling Mexico is using a prepaid calling card.

Here are some examples.

Company | Cost | Validity/Expiration Enjoy Prepaid | From 0.9¢/min to landlines, 2.9¢/min to mobiles. | After 183 days of inactivity. BOSS Revolution | 1.9¢/min to landlines and mobiles. | Credit remains while the user is active. Calling Card Plus | From 0.8¢/min to landlines and 2.5¢/min to mobiles. | Depends on the plan; may include per-minute rounding or a weekly charge.

Company

Cost 

Validity/Expiration

Enjoy Prepaid

From 0.9¢/min to landlines, 2.9¢/min to mobiles. 

After 183 days of inactivity.

BOSS Revolution

1.9¢/min to landlines and mobiles.

Credit remains while the user is active

Calling Card Plus

From 0.8¢/min to landlines and 2.5¢/min to mobiles.

Depends on the plan; may include per-minute rounding or a weekly charge.

Bundles with included minutes

A bundle is a package that, in addition to international calls, includes other related services. For example, Verizon Global Choice offers 300 minutes for $10 per month.

Practical tips for immigrants

Taking care of your finances is essential to stay in touch with your family in Mexico. Here are some tips to keep you connected.

• Use apps over Wi-Fi whenever possible: they’re a very affordable alternative, as long as you have a good internet connection.

• Compare rates from different companies: take time to review each provider’s international rates as well as specific terms.

• Consider family bundles or special plans for Mexico: given the geographic proximity between Mexico and the United States, there are several communication options designed for families who frequently contact relatives.

Stay connected with your family in Mexico thanks to Común

In this article, we showed you how to call Mexico from the United States with the correct code sequence, via mobile and landline. We also shared tips to keep in touch with your family through more accessible means such as mobile apps and international plans with minutes to Mexico.

In addition to staying in touch with family, Mexican immigrants also often need services that let them send money home.

• Discover the benefits of Común, the platform that brings you closer to the people you love most!

• Checking account with clear, competitive fees.

• Accessible international money transfers.

• Común’s mobile app is available in Spanish and accepts more than 100 eligible official IDs for account opening.

• Debit card for everyday purchases and payments.

Don’t lose touch with your country! Open your account with Común and connect with the financial platform dedicated to shortening the distance.

Frequently Asked Questions (FAQ)

If you still have questions, see this section.

What happens if I dial the number without the 011 prefix?

If you don’t dial 011 or “+” on mobile phones, your call won’t be recognized as international and will either connect as a local call or return an error.

Is it better to use apps or international calling plans?

It depends on your needs. Apps are an excellent alternative but depend on a good internet connection. International plans require a SIM, but they offer more stable calls along with other communication services.

Which option is best for saving money?

A very convenient option to save money is an app like WhatsApp, since it works over an internet connection.

How can I dial an 800 number from the United States to Mexico?

800 numbers are toll-free within Mexico, but from the United States they do carry a cost. To dial, you must enter the exit code and the country code.

Another option is to look for that institution’s alternate number for international calls.

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Recognizing the Signs of Identity Theft and a Compromised Account

The first step is recognizing the signs that your bank account may have been compromised. Unusual or suspicious transactions, unexpected changes to your account details, and alerts or notifications from your bank that you didn't trigger are clear indicators. Getting text or email alerts about activity you didn't do can also mean your account has been hacked. Staying alert and regularly reviewing your account activity can help you catch these signs early if your bank account is hacked.

Immediate Actions to Take When You Notice Suspicious Activity

1. Contact Your Bank Immediately. If you suspect your account has been compromised, call your financial institution directly. Most banks have a dedicated fraud department that can freeze your account to prevent further unauthorized transactions. Acting quickly is crucial to protecting your hard-earned money.

2. Change Your Account Passwords. Immediately change your online account passwords and any other online accounts linked to your financial information. Make sure your new passwords are strong, unique, and different from passwords you've used before.

3. Monitor Your Account for Further Activity. Keep a close eye on your account for any additional suspicious activity. Regularly review your bank statement and account activity, and report any discrepancies to your bank. Setting up text and email alerts for transactions can help you stay on top of your account status.

Learn how to monitor your accounts here

4. Report the Fraud. File a report with your bank's fraud department. Also report the incident to the Federal Trade Commission (FTC) and consider filing a police report. This can help protect your credit report and prevent further identity theft.

Additional Precautions: Enable Two-Factor Authentication

[Image: homepage of bank app — keep image as-is]

To Prevent Future Incidents, Take These Additional Security Measures:

1. Secure Your Devices. Make sure your devices are protected with the latest antivirus protection and security updates. Avoid using public Wi-Fi for online banking.

2. Enable Two-Factor Authentication. Turn on two-factor authentication (2FA) for an extra layer of security on your bank accounts and other online accounts. This makes it harder for unauthorized users to access your accounts.

3. Be Careful What You Share. Be careful about the information you share online, and avoid providing sensitive information like your Social Security number through unsecured channels. Watch out for phishing emails and malicious links that can lead to a compromised account.

4. Use Strong, Unique Passwords. Make sure to use strong, unique passwords for all your other accounts. Avoid reusing the same password across multiple accounts, and change your passwords regularly.

5. Set Up Fraud Alerts. Consider setting up fraud alerts with your bank and credit bureaus. This can help you stay informed about any suspicious activity on your accounts.

We'll show you how to open a bank account in the United States

Común's Security Features

At Común, we prioritize the security of our customers' accounts, just like leading financial institutions. Our platform includes advanced security measures like encryption and real-time monitoring to protect your financial information. If you ever suspect fraudulent activity, our customer service team is available to help you right away. Just send us a message through the Común app, and we'll walk you through the steps needed to secure your account.

Open your bank account¹ in 3 minutes with your country's ID²

• No minimum balance fees
• Get paid up to 2 days early³
• Send money to your home country safely
• And much more!

Open your account!

Conclusion

Quick action is crucial when it comes to a compromised bank account. By recognizing the signs, taking immediate action, and using strong security features, you can protect your finances and regain control of your accounts. Stay alert and proactive to keep your bank account secure. Remember, responding quickly can prevent further losses and ensure your money stays in your hands.

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What Is an SSN?

A Social Security Number (SSN) is a unique nine-digit code assigned by the U.S. Social Security Administration (SSA) to citizens, permanent residents, and certain eligible temporary residents. Originally designed to manage Social Security benefits, the SSN is now widely used for tax filing, credit history, and access to government services.

People must submit their SSN application to the address provided by the Social Security Administration.

Key facts about SSNs:

• Eligibility: U.S. citizens, permanent residents, and certain non-citizens authorized to work are eligible for an SSN.
• Uses: SSNs are used for employment, tax filing, Social Security benefits, and access to government services.
• Financial access: SSNs are often required to open bank accounts, apply for credit, and get loans.

An Individual Taxpayer Identification Number (ITIN) is also a nine-digit number, but it's issued by the IRS (Internal Revenue Service) rather than the SSA. People must file Form W-7 to apply for an ITIN. The ITIN is specifically for people who are required to file U.S. tax returns but aren't eligible for an SSN. This includes non-citizens without legal work authorization in the U.S., foreign investors, and dependents of U.S. citizens or residents.

An ITIN is required to file a U.S. tax return and is also used to submit a federal tax return.

Key facts about ITINs:

• Eligibility: ITINs are available to non-citizens who are required to file U.S. taxes but don't qualify for an SSN.
• Uses: ITINs are used solely for tax filing purposes and don't authorize work or provide eligibility for Social Security benefits.
• Financial access: While ITINs can be used to open bank accounts and apply for credit at some institutions, they don't grant the same level of access as an SSN.

Differences Between ITIN and SSN

The main difference between an ITIN and an SSN comes down to who can get them and what they're used for:

• Eligibility:
• SSN: Issued to U.S. citizens, permanent residents, and certain temporary residents authorized to work.
• ITIN: Issued to non-citizens who are required to file taxes but aren't eligible for an SSN. The number of days present in the U.S. affects residency status for tax purposes.
• Purpose:
• SSN: Used for a wide range of activities, including employment, tax filing, and access to Social Security benefits.
• ITIN: Used exclusively for tax filing and reporting by non-citizens without SSNs. An Employer Identification Number (EIN) is used for business entities, estates, and trusts.
• Legal status:
• SSN: Grants work eligibility and access to certain government benefits.
• ITIN: Does not grant work authorization or eligibility for Social Security benefits.
• Access to financial services:
• SSN: Provides broader access to financial services, including easier access to credit, loans, and government benefits.
• ITIN: While it can be used to open bank accounts and access some financial services, options are more limited compared to what's available with an SSN.

ITIN vs. SSN: Why Does the Difference Matter?

Understanding the difference between an ITIN and an SSN matters for several reasons:

• Tax compliance: Knowing which number to use is crucial for filing taxes correctly. Using the wrong identifier can result in errors, penalties, or delays in processing refunds. For U.S. citizens or residents, it's essential to use the correct identifier, such as an SSN or an Adoption Taxpayer Identification Number (ATIN), when an SSN can't be obtained in time for tax filing.
• Access to financial services: The type of tax ID you have can affect your access to banking, credit, and other financial services. For example, some banks and credit unions accept ITINs, while others may require an SSN.
• Employment eligibility: An SSN is required to work legally in the U.S. If you're a non-citizen without work authorization, applying for an SSN can lead to legal complications. In those cases, an ITIN is the appropriate identifier for tax purposes.
• Government benefits: An SSN is required to receive Social Security benefits and other government services, which aren't accessible with an ITIN.

Conclusion

Both the ITIN and the SSN play critical roles in the U.S. financial and tax systems, but they serve different populations and purposes. Understanding the differences between these identifiers is essential for anyone navigating tax filing, financial access, and legal employment in the U.S. Whether you're a U.S. citizen, a non-citizen authorized to work, or a foreign investor, knowing which number you need — and why — can help you avoid potential legal issues and ensure you have the financial access your circumstances require.

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