International Money Transfers
How to receive money from the United States in Mexico: complete guide
¿Cómo recibes dinero enviado desde EE.UU. en México? Guía completa con métodos de entrega, requisitos, tiempo de llegada y cómo recibir dinero sin cuenta bancaria.
8 min read
22 Jun 2026
How to receive money from the United States in Mexico: complete guide
To receive money from the United States in Mexico, you need to tell the sender which payment method you prefer. It can be a bank deposit, cash pickup at participating locations, or access through your bank account for ATM withdrawals. Depending on the service used, the money may arrive within minutes or on the same day.
Receiving money from the United States is easier today because there are more delivery options available than ever before. Depending on the remittance provider, recipients may be able to receive funds through a bank deposit, cash pickup, or other available methods. Understanding these options can help you choose the most convenient way to receive money and compare remittance services more effectively.
How does money sent from the United States arrive in Mexico?
Money sent from the United States can arrive in Mexico through several different delivery methods. The option available depends on the remittance service chosen by the sender and the payment preferences of the recipient. The most common delivery methods include:
- Direct deposit into a Mexican bank account
- Cash pickup at participating payment locations (like OXXO, Walmart, Bodega Aurrera, Waldos, etc.)
- Deposit into an account that allows access through ATMs
The delivery method should be selected before the sender completes the transfer. Choosing the correct option from the beginning can help make the process easier for the recipient.
What information does the sender need?
For a bank deposit, the sender will usually need:
- Your full name
- Your bank name
- Your account number or CLABE number
The CLABE is the standardized 18-digit banking number used in Mexico to identify bank accounts for electronic transfers.
For cash pickup, the sender may only need:
- Your full name
- Your city and state
- A valid government-issued identification document for collection
Before sharing information, verify that names and account details match your official documents. Small errors can delay delivery or require corrections before the funds are released.
What are the options for receiving money from the U.S. in Mexico?
| Payment method | Typical delivery time | Requires bank account | Where to receive |
|---|---|---|---|
| Bank deposit | Minutes to one business day | Yes | Mexican bank account |
| Cash pickup | Minutes to same day | No | Participating payment locations (OXXO, Walmart, etc.) |
| ATM access through deposited funds | Depends on deposit timing | Yes | ATM network linked to the account |
Bank deposits can be useful for paying bills, saving money, or making digital payments. Cash pickup may be a practical option when a recipient does not have a bank account or prefers to receive physical cash. Accessing funds through an ATM can provide additional flexibility after the money has been deposited into an account.
Can I receive money from the U.S. without a Mexican bank account?
Yes. Many remittance services allow recipients to collect funds in cash without having a bank account. Cash pickup services are available through networks of participating payment locations throughout Mexico.
To collect the funds, recipients are typically asked to present: a valid identification document, the transaction reference number if required, information that matches the transfer details.
How long does it take for money to arrive in Mexico from the United States?
Delivery times vary depending on the remittance provider, payment method, verification requirements, holidays, and banking schedules. Some transfers arrive within minutes, while others may take several hours or up to one business day.
Bank deposits may take longer if the transfer is initiated outside banking hours or requires additional verification. Public holidays in the U.S. or Mexico may delay the transfer delivery times and dates. Cash pickup transfers are often available more quickly because they do not depend on bank processing schedules.
What are the fees for receiving remittances in Mexico?
In many cases, the sender pays the remittance fee when initiating the transfer. Recipients in Mexico often receive the full amount designated by the sender, although the final amount can be affected by exchange rates and the terms of the transfer service. Some banks in Mexico have fees for international transfers, and some cash pick-up locations may have fees when collecting cash.
Before collecting a transfer, it can be useful to confirm: the amount sent, the exchange rate applied, any collection requirements, the delivery method selected, and if fees are applicable in your case.
How do I receive money sent with Común?
If your family member in the United States uses Común to send money, they can choose the delivery method that works best for you in Mexico. Depending on the available options for the transfer, funds may be delivered through a bank deposit or made available for cash pickup through participating payment locations.
Remittances sent through Común start at $2.99, which are covered by the sender. Many transfers are delivered the same day, although it will depend on the destination and delivery method selected. To learn more, visit comun.app/remittances.
What to do before receiving your next remittance
Decide whether you prefer a bank deposit or cash pickup before the sender initiates the transfer. Having your account details, documents, and personal information ready can help reduce mistakes and delays.
Make sure you share your preference for receiving remittances with the sender. If you're selecting a cash pick-up location, verify if they have locations available nearby or if you will need to travel to pick it up. When handling cash, it is always important to consider safety precautions.
If your family member in the United States doesn't know about Común yet, you can share the website so they can evaluate if it's an option that suits their remittance needs. Común offers the possibility of opening an account using a passport or more than 100 valid Latin American IDs. The account doesn't have any minimums or monthly fees.
FAQ
How do I receive money sent from the United States to Mexico?
You can receive money through a bank deposit, cash pickup at participating locations, or through funds deposited into an account that can be accessed through an ATM.
Can I receive money from the U.S. without a bank account?
Yes. Many remittance providers offer cash pickup services. A valid identification document is usually required.
How long does it take for money to arrive from the U.S. to Mexico?
Some transfers arrive within minutes, while others may take several hours or up to one business day.
What information do I need to provide to receive a remittance?
Bank deposits usually require account details. Cash pickup services generally require identification and matching recipient information.
How much is the commission for receiving money from the U.S.?
The recipient does not always pay a fee directly. Costs may depend on the provider, exchange rate, and transfer terms selected by the sender.
What happens if the money doesn't arrive on time?
The sender should verify the transaction status with the remittance provider. Delays can occur because of verification requirements, banking schedules, holidays, or incorrect recipient information.
Común is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank, Member FDIC. Peer-to-peer payments services are provided by Cross River Bank. No minimums, no maintenance fees. Remittance service provided by Service UniTeller, Inc. Remittance fees start at $2.99 but may vary. Común Inc. may earn revenue from the conversion of foreign currencies.
About Común
Común aims to support the Latino community in the United States. It offers a debit account that can be opened with more than 100 valid Latin American IDs and an app available in Spanish.
Visit Común's website or download the app for free to learn more about the full offer and applicable terms.
Olivia Rhye
Community Partner
International Money Transfers
How much does it cost to send money to Mexico from the United States? A 2026 guide
8 min de lectura
Sending money to Mexico with Común costs as little as $2.99 per transfer, and your first transfer is at no cost. The exchange rate is shown in full before you confirm, with no hidden charges, and most transfers arrive within minutes.
How much does it cost to send money to Mexico from the United States? A 2026 guide
In most cases, the total cost depends on three factors: the transfer fee, the exchange rate, and any charges applied to the recipient of the money. The truth is that the final cost can range from a few dollars to something more significant as it is impacted by the service fee, delivery method, and speed.
Remittances have become so important to the Mexican economy that Mexico remains the world's second-largest recipient of remittances, behind only India. According to BBVA Research, Mexico received $61.8 billion USD in remittances in 2025, representing 3.4% of the country's GDP. Today, there are dozens of apps and money transfer services available for sending money from the United States to Mexico. Some focus on speed, others on cash pickup access, and some prioritize lower overall costs.
In this guide, we'll break down what actually affects the cost of a transfer, compare popular services, and explain how to find the option that works best for you and your family.
How much money can I send to Mexico?
One very important aspect to consider is the amount allowed by money transfer apps, as well as any restrictions included in their terms and conditions.
In general, there is no legal limit imposed by the United States government, but each platform has its own standards and regulations that determine transfer limits and guidelines for international money transfers.
For example, these are some of well known providers that offer money transfers to Mexico and their respective limits:
- Western Union: up to 5,000 USD per transaction.
- MoneyGram: up to 10,000 USD per transaction.
- Xoom: Level 1 is limited to $2,999 per day while the third level allows up to $50,000 per day.
If you are looking for a straightforward way to send money to Mexico, Común can be an excellent alternative. New users can enjoy the first money transfer free and then pay a fee starting at 2.99 USD per transfer, up to applicable limits.
What is the best way to send money from the United States to Mexico?
There are several ways to send money from the United States to Mexico, whether through traditional banks or specialized international money transfer services. These are the main options to do it:
Bank-to-Bank transfers
One of the most common ways to send money is through wire transfers from one traditional bank to another. The advantage of this method is that it can be secure because it is backed by official financial institutions. However, transfers can take longer and involve higher fees.
To send funds this way, you must have a U.S. bank account and use the recipient's SWIFT code.
The transfer cost depends on the receiving bank in Mexico. For example:
- BBVA charges approximately $30 USD + VAT to receive an incoming international transfer.
- Citibanamex estimates suggest around $15–20 USD + VAT for incoming transfers, but confirming directly with the bank is recommended.
These fees apply regardless of the amount sent, therefore it is important to confirm the fees with each bank.
Cash transfers
Another option, which may be more accessible for people without a bank account, is sending cash that can be picked up at different locations across Mexico.
To send cash, it is common to visit a physical location of the provider that offers this service, such as a Western Union office. Once there, you pay the amount you want to send plus the assigned fee. To collect the funds, your family members must present a valid government ID at one of the participating locations, such as Oxxo, Banco Azteca, Walmart, or others. However, many service providers such as Western Union also have digital offers.
Although this can be a convenient alternative for people who mainly manage cash, it may also come with potential drawbacks, such as fees that vary depending on the amount sent and exchange rates that might be less competitive compared to some digital transfer services.
Apps and digital platforms
Another option for sending money to Mexico is through apps and digital platforms that specialize in international money transfers, such as Wise, Félix Pago, Ria Money Transfer, and Común. Many of these services are available on both iOS and Android and may offer lower costs compared to some cash transfers or traditional bank wires, depending on the provider and delivery method. Some platforms focus mainly on money transfers, while others may also include additional financial features, such as a debit card or access to a U.S. bank account.
To access these services, you must create an account on the provider's website or app. In addition, some apps require identity verification using personal information such as your SSN (Social Security Number) or ITIN.
You can send money directly through the provider's app or, in some cases, even through WhatsApp, and choose the preferred delivery method. Some services also offer cash pickup options for recipients. For example, Común accepts more than 100 Latin American IDs for account verification, it allows you to send money through the app or via WhatsApp, and offers cash pickup options across Mexico.
Before choosing an app to send money to Mexico, we recommend comparing the most popular options and evaluating which one best fits your needs and those of your family.
Five popular mobile apps for sending money to Mexico from the United States
There are many apps available for sending money from the United States to Mexico, but costs, delivery speeds, and exchange rates can vary depending on the provider and transfer method. Comparing multiple options can help you find the service that best fits your needs.
| Service | Payment Options | Fee | Delivery Options | Exchange Rate | MXN per 1,000 USD | Speed |
|---|---|---|---|---|---|---|
| Común | Bank account, debit card, cash | Starting at 2.99 USD | Bank account or cash pickup | Competitive | ~17,000 MXN | Minutes to hours |
| Western Union | Bank, cash, card | Varies depending on amount | Bank, cash, wallet | Exchange rate with spread applied | ~16,920 MXN | Minutes to days |
| Félix Pago | WhatsApp, cash, card | $2.99 USD for bank account and $4.98 USD for cash pickup transfers | Bank account and cash | Competitive | ~17,000 MXN | Instant |
| Ria Money Transfer | Bank account (ACH), debit card, credit card, cash | Starting at $0.99; free for bank transfers up to $15,000 | Bank account, cash pickup, mobile wallet | Exchange rate with spread applied | ~16,900–17,000 MXN | Minutes to days |
| MoneyGram | Bank account, debit card, credit card, cash (at agent) | Free for bank transfers up to $10,000; $49.99 for $10,001–$15,000; $5+ for cash sends | Bank account, debit card, mobile wallet, cash pickup | Exchange rate with spread applied | ~16,800–16,950 MXN | Minutes to hours |
The amount received in MXN for every 1,000 USD can change throughout the day due to fluctuations in exchange rates, provider fees, and delivery methods. The rates shown here are for illustrative purposes only and may not reflect the exact amount available at the time of your transfer. Before sending money, it may be helpful to compare the current exchange rate and total transfer cost across providers. Común's comparison tool can help you check and compare available rates in real time.
What determines the real cost of sending money to Mexico?
When comparing money transfer services, many people focus only on the advertised transfer fee. But the real cost of sending money to Mexico usually depends on three different factors:
- The transfer fee.
- The exchange rate spread.
- Charges applied to the recipient.
Understanding these costs can help you compare services more accurately and avoid situations where your family receives less money than expected.
Transfer Fee
The transfer fee is the most visible cost. This is the amount the provider charges to process the transaction.
Some services charge a flat fee per transfer, while others adjust the fee depending on the amount sent, the payment method, or how quickly you want the money delivered. In some cases, companies may offer promotional pricing or even a free first transfer for eligible users.
Although low fees can help reduce costs, they may not always result in the lowest overall transfer cost once exchange rates and other charges are taken into account.
Exchange rate spread
The exchange rate spread is one of the most important and often least visible parts of the total cost.
Some service providers do not use the exact market exchange rate you find on Google or financial websites. Instead, they add a margin, also known as a "spread," when converting USD to MXN.
This means that even a small difference in the exchange rate can significantly reduce the amount your recipient receives in pesos, especially on larger transfers.
A service with a slightly higher transfer fee but a more competitive exchange rate may actually deliver more money to your family in Mexico.
Recipient charges or withdrawal costs
In some cases, additional costs may appear after the transfer is sent. Depending on the provider and delivery method, the recipient could face charges for cash pickup, ATM withdrawals, bank processing, or currency conversion. Some banks and pickup locations may also apply their own service fees.
These extra costs are important because they directly affect the final amount your recipient can actually use.
Compare the full cost
The best way to compare money transfer services is to look at the total outcome: how much you pay, how much your recipient receives, and how long the transfer takes.
If possible, it is recommended that before sending money, you review the transfer fee, compare the exchange rate, and check whether there are any recipient-side charges. Small differences across these three factors can add up quickly over time.
To compare real-time transfer costs, exchange rates, and delivery options, you can use tools like Común's compara before making your transfer.
How can I send money to Mexico with Común?
With Común you can send money to your family and friends in Mexico directly from Común's mobile app without leaving your home.
You can follow these steps:
- Open your Común mobile app.
- On the main page, select "Send a Remittance."
- Select the recipient you want to send the international transfer to.
- You can register a recipient using their banking details, including full name, bank name, and phone number.
- After registering the recipient, enter the amount you want to send and review the transaction costs.
- Confirm the details and select "Confirm International Transfer."
- The recipient should receive the money within minutes. If you select a store pickup, the person can collect the money about 30 minutes after confirming the transaction.
- You can check the transfer status in your Común mobile app by clicking on the transaction.
Transfer fees start at 2.99 USD per transaction, up to applicable limits.
Send money to Mexico easily and securely
Today, there are more options than ever for sending money from the United States to Mexico. Whether you prefer the familiarity of a traditional bank, the convenience of cash pickup, or the flexibility of a digital platform, the right choice will depend on your own situation.
Comparing fees, exchange rates, delivery methods, and transfer times may help you find an option that better fits your needs and the way your family prefers to receive money.
With Común you can open an account using more than 100 Latin American IDs, send money from the comfort of your phone and access multiple delivery methods across Mexico.
How much does it cost to send money to Mexico with Común?
Fees start at $2.99 per transfer. Your first transfer is at no cost. Común shows the exchange rate and the exact amount your family will receive before you confirm — nothing changes afterward.
How long does it take for the money to arrive?
Most transfers arrive within minutes. The exact time depends on the delivery method your family chooses (bank deposit or cash pickup).
Where can my family pick up the money in Mexico?
Común offers cash pickup at locations like Elektra and Oxxo, plus direct deposit to a Mexican bank account.
Frequently asked questions
What's the minimum fee to send money to Mexico with Común?
Starting at $2.99 per transfer. Your first transfer is at no cost. The final amount your family receives is shown in full before you confirm, with no hidden charges.
Is Común's exchange rate competitive?
Yes, Común offers a competitive exchange rate and shows you the exact amount in pesos before sending, so you know exactly how much your family will receive.
Can I send money to Mexico even if my family doesn't have a bank account?
Yes, your family can pick up the cash at locations like Elektra or Oxxo without needing a bank account.
How long does a transfer to Mexico take?
Most transfers arrive within minutes, depending on the delivery method chosen.
Do I need a Común account to send money to Mexico?
Yes, remittances are sent from your Común account inside the app by selecting "Send a remittance."
Is there a limit on how much I can send to Mexico?
Transfer limits vary by account; you can check them directly in the app before confirming your transfer.
International Money Transfers
Remittance services: how to send money to Latin America
8 min de lectura
Remittance services: sending money to Latin America
For millions of Latin Americans living in the United States, sending money back home is part of everyday life. For many, their families and friends back home often depend on fast and reliable remittances from the United States. Today, there are many service providers for sending money to Latin America available in the market, each offering different advantages and disadvantages and choosing the right one is key to make the most out of your hard-earned money. A useful approach is to understand how remittance pricing works, what factors affect the total cost, and how to compare the services based on your specific needs.
How to measure the real cost of a remittance?
The real cost of a remittance is determined by different elements:
- The transfer commission.
- The exchange rate being offered at the moment.
- Additional service fees.
- Delivery method.
- Transfer speed.
- Promotional pricing conditions.
In practice, the exchange rate often has the biggest impact on how much money the recipient actually receives. For example, two providers may advertise similar fees while delivering noticeably different final amounts because of the FX spread built into the exchange rate.
What is the FX spread?
The FX spread is the difference between:
- The real market exchange rate (this is also called the mid-market or interbank rate)
- The exchange rate the service provider gives you
This difference is where some remittance service providers generate revenue. The same reason why two services with the same "$0 fee" can have very different final costs.
The most popular remittance services used by Latin Americans in the U.S.
Different services work better for different types of users. Here you can find a general overview of the providers most commonly used by the Latino communities in the United States.
Western Union
Western Union is one of the largest remittance companies in the world, with an extensive cash pickup network across thousands of locations in Latin America.
Strengths:
- Large global network
- Cash pickup availability
- Multiple delivery methods
Limitations:
- Exchange rates may vary significantly
- Fees depend on payment method and destination
Ria Money Transfer
Ria Money Transfer offers payments from the US to more than 165 countries across the world, with delivery options including cash collection and delivery to either a mobile money wallet or bank account.
Strengths:
- Wide coverage
- Competitive options in some corridors
- Cash pickup availability
Limitations:
- Pricing varies depending on country and delivery method
- Exchange rate competitiveness changes daily
MoneyGram
MoneyGram is a service provider of international remittances that enables individuals to send and receive money internationally and domestically.
Strengths:
- Extensive cash pickup network
- Fast transfers in some cases
- Availability in multiple countries
Limitations:
- Fees and FX spreads can vary widely
- Final cost depends heavily on transfer method
Félix Pago
Félix Pago is a WhatsApp-based platform focused on servicing the Latino community in the U.S. to send money throughout Latin America.
Strengths:
- Mobile-first experience
- Speed and convenience
Limitations:
- Coverage and features may vary by destination
- Transfer economics depend on corridor and timing
- Not every user prefers chat-based transfers
Común
Común offers the possibility to open a debit account in the USA and send money home from Común's app or WhatsApp.
Strengths:
- Spanish-first app and customer support
- Convenient with a mobile-focused experience
- Promotional FX rate available on the first transfer
- Accepts more than 100 Latin American IDs to open a debit account
- Transparent fees
Limitations:
- Exchange rates and transfer costs vary daily
- The final recipient amount depends on the destination country, transfer method, and market conditions
Remittance services: a general comparison
Today, the remittance service provider market in the U.S. can be divided into two major categories:
Traditional remittance agencies
Companies that offer physical networks and cash pickup infrastructure. For example: Western Union, Ria Money Transfer or MoneyGram.
Fintech alternatives
These platforms focus on mobile experience, transparent pricing, digital account management, accessibility for immigrants in the U.S. and some offer Spanish-first experiences. Examples: Común and Félix Pago.
Why do comparisons matter?
Exchange rates change every day and promotional offers can also change. This is why it's important to compare what's the best service provider for your current situation. If possible, it is recommended to use a tool to have a better perspective on your remittance costs. For example Común has a live calculator at comun.app/compara designed to help you understand the exact conditions of your transfer.
Beyond the exchange rate
For many immigrants in the United States, choosing the best remittance services is not just based on who offers the best exchange rate. The accessibility to the services can shape the entire experience of sending money. Some people may not have a Social Security Number, a traditional U.S. bank account, or an easy way to verify their identity through conventional financial systems. Language can also play an important role for navigating financial apps especially with customer support and understanding the specific transfer policies. Being able to do financial transactions in a native language can make transactions feel less stressful.
The competitive market landscape in the U.S. makes it possible for Latin American immigrants to compare options for their remittances. Today, you can look beyond the exchange rate and consider factors like Spanish-language support, flexible identification requirements, mobile accessibility and transparency around fees and/or transfer conditions. The best remittance service provider is the one that offers pricing, services and access that fit your needs. Común's app is available in Spanish, accepts more than 100 Latin American IDs and offers transparent fees.
How to choose the right remittance service for your situation?
There is no universal "best" remittance provider. The right option depends on how often you send money, where you are sending it, how your recipient receives the funds, and what kind of financial access you have in the United States. Choosing based on your own priorities is often the best path.
If this is your first transfer
Many remittance services offer promotional pricing or preferred exchange rates for first-time users. These promotions can temporarily improve the amount received by your family, but they do not always reflect the long-term cost of using the platform.
For example, some digital services may offer stronger FX rates on the first transfer, while traditional providers occasionally waive transfer fees for new customers. However, the total value still depends on the exchange rate, transfer speed, and delivery method.
Before sending your first remittance, it is important to consider:
- The final amount your recipient will receive
- If the promotion applies to your destination country
- Delivery times
- Bank deposit vs cash pickup options
To compare exchange rates you can always use a tool, for example, comun.app/compara is designed to help people understand the cost of their transfer.
If you do not have an SSN
Access to financial services can vary significantly for immigrants in the United States, especially for people who do not have a Social Security Number. This can make onboarding slower or more complicated for recent immigrants, ITIN holders, or people primarily using foreign identification documents.
Some remittance service providers have adopted more flexible verification models. Común, for example, accepts more than 100 Latin American IDs. It is recommended to check with every institution their specific verification requirements.
If you send money regularly
People who send remittances every month can benefit more from consistency than from temporary promotions. For frequent senders, it can be useful to review:
- Ongoing exchange rates
- Fee transparency
- Recurring transfer options
- Convenience: for example mobile app or WhatsApp transfers
- Customer service availability
If your family depends on cash pickup
Cash pick-up continues to play a major role across many parts of Latin America, especially in smaller cities or rural communities where bank access may be limited.
Traditional remittance companies like Western Union, Ria Money Transfer, and MoneyGram offer large physical networks that allow recipients to collect money in person at supermarkets, convenience stores, banks, and local partner locations.
Before choosing a provider, it is helpful to verify:
- Whether cash pickup is available in the destination city
- Pickup hours and accessibility
- Transfer speed
- Identification requirements for recipients
- Maximum transfer limits
In some cases, the best service is simply the one your recipient can access easily. Común offers cash pick ups with options in some stores and banks.
If you prefer convenience: mobile-first experiences
Over the past years, mobile-first experiences have become popular given the convenience of being able to send remittances from one's mobile phone.
Digital-first services can offer:
- Faster onboarding
- Mobile transfers
- Real-time notifications
- Simpler account management
Platforms like Común and Félix Pago are examples of services designed around mobile experiences for Latino immigrants. For people who feel more comfortable managing their transfers from their phones, these platforms can feel faster and more convenient.
FAQ
What is the cheapest service to send remittances to Latin America?
There is no single service that is always the cheapest. Costs depend on exchange rates, transfer fees, destination country, payment method, and whether you qualify for a first-transfer promotion. The best way to verify your exact case is to compare providers.
What is the FX spread and why does it matter when sending remittances?
The FX spread is the difference between the real market exchange rate and the exchange rate offered by the remittance provider. A weaker exchange rate can reduce the amount your recipient receives.
How can I verify the real cost before sending a remittance?
The best way is to compare the total recipient amount, exchange rate, fees, and promotional conditions before sending money. Some service providers offer tools that calculate the costs before sending the remittance. Común's live comparison calculator is designed to help users verify this information in real time.
Do all remittance services offer cash pickup options?
No. Some remittance providers specialize in bank deposits or digital wallet transfers, while others maintain extensive cash pickup networks across Latin America. Before sending money, it is important to confirm how your recipient prefers to receive funds and whether pickup locations are accessible in their area.
Why do exchange rates change between remittance providers?
Each provider sets its own exchange rates based on market conditions, operating costs, transfer corridors, and promotional strategies. Because rates can change daily, comparing providers before each transfer can help users better understand the total cost of sending money.
Final thoughts
The remittance industry has changed significantly over the past decade, today sending money to Latin America is no longer limited to one type of service or provider. Immigrants in the United States can choose between traditional cash pickup networks, digital-first platforms, and hybrid financial services depending on what works best for their families.
For many people, the real value comes from the full experience from the convenience of usage, accessibility to the services and knowing exactly how much money will arrive can matter just as much as costs. Común offers transparent pricing, an app available in Spanish and a comparison tool that helps users review transfer costs before sending money.
International Money Transfers
Sending money to Latin America? What you need to know about the new 1% tax
8 min de lectura
Sending Money to Latin America? What You Need to Know About the New 1% Tax
If you send money home to Mexico, Guatemala, Colombia, El Salvador, Honduras, or anywhere else in Latin America, a new federal law may affect the fees you pay per money transfer, depending on how you send it.
On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (OBBBA), Public Law 119-21, which introduced a new federal excise tax on certain international money transfers. The tax, set at 1% of the transfer amount, applies to remittances made on or after January 1, 2026. However, not all transfers are taxable.
If you send money from a US bank account or using a US-issued debit or credit card, your transfer is exempt from the tax by statute. The tax applies only when you pay with cash, a money order, a cashier's check, or a similar physical instrument.
Understanding whether this tax applies to you and how it may affect your transfers can help you send money home with fewer surprises.
What Is the New 1% Remittance Tax?
It imposes a 1% federal excise tax on certain outbound remittance transfers, meaning money sent from a sender in the United States to a recipient in a foreign country, through a remittance service provider.
The tax is codified under IRC Section 4475, added to the Internal Revenue Code by Section 70604 of the OBBBA. It applies to all senders, regardless of citizenship or immigration status.
The tax was effective for transfers made after December 31, 2025, with collection beginning January 1, 2026.
Who Pays the Tax? Who Doesn't?
The key factor is how you fund the transfer, not how much you send, not where it goes, and not your immigration or citizenship status.
| Subject to the 1% Tax | Exempt from the 1% Tax |
|---|---|
| Transfers funded with cash (e.g., paying cash at a remittance service provider) | Transfers funded from a US bank account at a BSA-compliant institution |
| Transfers funded with money orders | Transfers funded with a US-issued debit card |
| Transfers funded with cashier's checks | Transfers funded with a US-issued credit card |
| Transfers funded with similar physical instruments | Transfers of $15 or less (under EFTA threshold) |
Source: IRS.gov, RSM US. This information is for informational purposes only and does not constitute legal or tax advice.
This means that if you often send money back home with a remittance service provider with physical locations (for example Western Union or MoneyGram) and pay with cash, a 1% tax will be added to your total transfer amount.
However, if you send money through a digital app or bank account linked to your US checking or savings account, or pay with a US-issued debit or credit card, the transfer is exempt from the tax under Section 4475.
How Is the Tax Collected?
The tax is collected at the point of transfer. When a taxable transaction occurs, the remittance transfer provider is responsible for collecting the 1% from the sender at the time the transfer is made.
Providers must then deposit the collected taxes with the IRS on a semimonthly schedule and file quarterly returns.
The Remittance Landscape in 2026
For millions of families across Latin America, the money that arrives from a relative in the United States can pay the rent, cover school fees, or put food on the table. In 2024, Latin America and the Caribbean received an estimated $161 billion in remittances, the vast majority sent from the US. Mexico alone received over $63.3 billion. In countries like El Salvador, Guatemala, Nicaragua, and Honduras, remittances represent between 19% and 26% of GDP.
For people already stretching every dollar between their own expenses in the US and the needs of family back home, an additional cost on each transfer can have an impact. How much it affects you depends largely on the tools available to you.
Cash agent networks (Western Union, MoneyGram, Intermex):
These are the traditional in-person options, often used by senders who mostly manage cash. Transfers funded with cash at these locations are subject to the 1% tax.
Digital apps (Remitly, Wise, Xoom, Común, and others):
These platforms typically process transfers from a linked US bank account or US-issued debit or credit card. These payment methods are exempt from the tax under Section 4475. However, fees and exchange rate margins may vary by provider.
Bank wire transfers:
Transfers sent directly from a US bank account at a Bank Secrecy Act–compliant institution are exempt from the tax by statute. Bank wire fees can be higher than digital app fees.
What This Means for You
If you send money home regularly, you already know that there are costs involved: transfer fees, exchange rate margins, sometimes a fee on the receiving end. Now, depending on how you send money, there may also be a new 1% federal tax. That may not sound like much in isolation, but if you're someone already careful about managing what to keep and what to send, it can add up.
There is no single right answer for everyone. Some people that have a US bank account can shift to a digital transfer method. Others who don't have that option yet, or may have reasons for continuing to send through an agent location. Whatever your situation is, a few things may help:
Know what you're being charged:
Before confirming any transfer, you should be able to see the fee, the exchange rate, any applicable taxes, and the exact amount your family will receive. Review everything before you hit send. Some service providers, like Común, offer in-app tools to help you calculate the costs before sending anything.
Compare the total cost:
A provider that charges no transfer fee but offers a weaker exchange rate can potentially cost more than one with a modest flat fee and a fair rate. The number that matters is what arrives on the other end.
If you have a US bank account or debit card, ask your provider about your options:
Transfers funded from a US bank account or US-issued debit or credit card are exempt from the tax under the current statute.
Ask your provider directly how they handle the tax:
Some providers may have updated their apps, websites, or agent instructions. If you're sending via a digital channel linked to your US bank account or debit or credit card, ask whether that payment method qualifies for the statutory exemption.
Manage your remittances confidently with Común
Having an account to receive electronic payments, track your spending, and send money directly may help make managing your financial life in the U.S. more convenient. Común accepts more than 100 valid Latin American IDs to open a debit account. With Común you get:
- A $2.99 flat fee per remittance transfer, with no hidden charges
- A checking account held at Community Federal Savings Bank, Member FDIC. Deposits are FDIC insured up to the applicable limits
- Transparent, in-app pricing where you can see exactly what each transfer will cost, including fees and the exchange rate, before you confirm
- 24/7 customer support in Spanish
- Cash pickup options for your recipient
- The ability to send transfers from the comfort of your phone
To learn more about Común's remittance services, visit comun.app/remittances.
FAQ
What is the new 1% Remittance Tax?
It is a federal excise tax introduced by the One Big Beautiful Bill Act (OBBBA), Public Law 119-21, codified as IRC Section 4475. It imposes a 1% tax on certain outbound money transfers from the United States to recipients in foreign countries. It applies only to transfers funded with cash, money orders, cashier's checks, or similar physical instruments.
When does the new remittance tax take effect?
The tax applies to remittance transfers made on or after January 1, 2026. It was signed into law on July 4, 2025, as part of the OBBBA. The IRS granted penalty relief to providers for the first three quarters of 2026, with full enforcement expected beginning Q4 2026.
Who has to pay the 1% tax?
The tax is owed by the sender, but it is collected and remitted to the IRS by the remittance transfer provider at the time of the transfer. It applies to all senders, regardless of citizenship or immigration status.
Are all money transfers from the US subject to the new tax?
No. The tax applies only to transfers funded with cash or physical instruments. Transfers funded from a US bank account at a Bank Secrecy Act–compliant institution, or paid with a US-issued debit or credit card, are exempt from the tax by statute.
How is the tax collected?
The remittance transfer provider collects the 1% tax from the sender at the time of transfer. Providers must deposit collected taxes with the IRS on a semimonthly schedule and file quarterly returns using Form 720.
How can I tell if my transfer is taxable?
It depends on how you're funding the transfer. If you are paying with cash, a money order, or a cashier's check at a remittance agent, the 1% tax likely applies. If you are sending money through a digital app or bank account using your US checking account or a US-issued debit or credit card, the transfer may be exempt under the current statute. Ask your provider directly to confirm how your specific payment method is classified.
International Money Transfers
Choosing the right remittance service provider for you
8 min de lectura
Choosing a remittance provider depends on the fee, the exchange rate, delivery speed, and pickup options available in the destination country. With Común, fees start at $2.99 and most transfers arrive within minutes.
Choosing the right remittance service provider for you
Every year, people all over the United States send remittances to support their family and friends back home. These transfers are more than just simple transactions, these are the economic lifeline for them. This is why choosing the right service provider for your remittances based on your needs is key to ensuring you and your loved ones have the support you need.
What is a remittance?
Simply put remittances are money transfers made by people who live and work in one country to family members, friends, or other beneficiaries who are residing in another country.
How do remittances work in the U.S.?
Sending a remittance from the U.S. follows a fairly standard process, these are the steps regardless of who is the remittance service provider:
- Initiate the transfer
The sender chooses a remittance service provider, then choose the payout method that is right for the recipient (such as: cash pickup, bank deposit, transfer, etc.), input the amount to send, and provides the recipient’s details. - Fund the transfer
Transfers typically be funded via debit card, bank account, cash (in-store), or sometimes with credit card. Fees vary widely across different remittance providers. - Exchange rate
This is where many senders lose money without realizing it. Some remittance providers convert USD to the recipient’s local currency using an exchange rate that may include a hidden markup over the mid-market rate. Some remittance service providers don’t charge commissions on the transfer as their business gains come strictly from exchange rates conversion. Understanding the exchange rate’s fees is also important when preparing to send remittances. - Settlement and payout
The money is delivered to the receiver through a partner bank, local agent, cash pickup or digital wallet. Depending on the provider, this can take from minutes to days.
The combination of fees + exchange rate markup is what ultimately determines the real cost of the remittances transfer. Many remittance providers advertise low fees when their business gains are achieved by offering a much weaker exchange rate, which results in reducing the amount your recipient actually receives.
Types of Remittance service providers in the U.S.
The U.S. remittance service provider market is diverse, and providers generally fall into the following categories:
1. Cash-to-Cash Money Transfer Operators (MTOs)
These are the traditional remittance companies with physical locations for in-person payments and cash pickups.
Examples: MoneyGram, Western Union, Walmart (MoneyGram at Walmart).
Pros: Physical accessibility, ideal for people without bank accounts.
Cons: Often higher service fees, a slower process, and often has exchange-rate markups.
2. Traditional Banks and Credit Unions
Some financial institutions offer international wire transfers through SWIFT processes for remittance programs.
Pros: Physical locations, direct bank-to-bank transfers.
Cons: Requires a bank account, usually the most expensive option (as SWIFT processes tend to have costly fees and exchange rates) and it could require longer processing times.
3. Digital-first Transfer Services
These companies operate entirely online or through mobile apps. They can be faster and more transparent.
Examples: Remitly, Felix, Comun, etc.
Pros: Convenience, speed, competitive fees, trackable transfers.
Cons: Limited cash pickup options in some regions.
Key things to look out for when selecting a remittance service provider
Choosing the right remittance service provider can have a significant impact on how much money actually reaches your loved ones. Between varying fees, differences in the exchange rate, documentation requirements, and the growing list of additional services, not all remittance providers offer the same services nor require the same things. Whether you send money home occasionally or on a weekly basis, it is important to choose a remittance provider that maximizes the value of what your loved ones receive.
1. Fees: What you pay up front (and what you don’t see)
Every remittance provider has some form of fees for providing their services, however not all fees are presented the same way (this is why it's important to fully understand the costs associated with your remittance).
What types of fees can potentially exist?
- Transfer fee: A flat or percentage-based amount charged per transaction.
- Payment method fees: Extra charges for using a credit card instead of a bank account.
- Payout method fees: Some providers charge more for cash pick-ups vs. bank deposits.
What could be an unexpected fee?
- For example, exchange rates can differ: Often the exchange rate you find while doing an online search is not the same exchange rate that will be charged by your chosen remittance service provider.
What to look for?
- A tool or calculator showing the final amount the recipient gets before you make the transfer.
- Transparent fee displays before you confirm the transaction.
- Providers that consistently keep both transfer fees and FX markups low.
In many cases, the cheapest provider isn’t the one with the lowest visible fee. It could be the one offering the most competitive exchange rate or a fixed fee that makes sense with your transfer activity. The best service provider will always be one that serves the specific needs you have.
2. Exchange Rates: Why does the exchange rate could play a key role when selecting a remittance service provider?
The exchange rate (or tipo de cambio) used by the provider determines how many pesos, quetzales, soles, or other currency your recipient will receive. When sending money abroad, senders can sometimes focus only on the visible fee (for example, a charge of $3.99 per transfer). But in many cases, the biggest cost can come in the exchange rate. If two companies offer the same fee but one has a weaker exchange rate, your family may receive less money.
For example: A difference of choosing an exchange rate with just 1 mexican peso less per USD could mean that the recipient would get $100 mexican pesos less on a $100 USD remittance.
Understanding the real costs of your remittance is essential to choosing the best remittance provider.
What questions can I ask myself before choosing the right remittances service provider?
- Do they use the mid-market exchange rate or do they add a margin?
- Is the rate fixed at the time you send the money?
- Do they offer promotional rates only for first-time customers?
What could be something to look out for?
- A low fee paired with a weak exchange rate.
- Big differences between their advertised rate and the actual payout amount.
- Exchange rates that fluctuate during the transfer.
Even a small difference in the exchange rate can significantly reduce the final amount your family or friends receive if you send a lot.
3. Documentation and requirements: Keep it simple and secure
Each remittance provider must comply with U.S. financial regulations, but their onboarding requirements vary from service provider to service provider.
What are some common documentation steps or documents needed?
- ID verification (e.g., driver’s license, passport, or state ID).
- Personal information such as date of birth and address.
- Recipient details (full name, destination country, payout method)
- In some cases, proof of funds or additional verification for large amounts
What to look for?
If a provider asks for excessive documentation or makes the process confusing, consider choosing one with smoother compliance systems. For example, some remittance services accept documentation without a United States passport when the sender can demonstrate residency in the United States.
4. Speed and reliability: How fast does the money arrive?
While some people prioritize low cost, others prioritize speed. This is completely impacted by the recipient's needs back home.
Transfer speeds vary by:
- Payment method (debit card vs. bank transfer vs. cash).
- Receiving method (bank deposit vs. mobile wallet vs. cash pickup)
- Provider’s infrastructure and local partnerships.
What can I focus on to ensure my transfer arrives quickly and safely?
- Real-time delivery estimates offered by the service provider.
- Clear differentiation between “instant,” “same-day,” and “next-day”.
- A track record of reliability, not just advertised promises.
When urgency hits speed matters, but always make sure your money is safe.
5. Security and trust: Your money must be safe
Choosing a remittance provider also requires confidence in the company’s ability to protect both your information and funds.
What are some key indicators of a trustworthy service provider?
- Licensing as a money transmitter in the U.S. For example, with Comun your funds in the Comun checking account are held at a FDIC insured partner bank.
- Secure encryption for payments.
- Fraud prevention tools and notifications.
- Positive customer reviews and transparent dispute resolution
To keep your money safe it is important to consider avoiding remittance providers with unclear credentials or repeated complaints about blocked transfers and delayed payouts.
6. Additional Services: Look beyond the transfer
A remittance provider is more than just a money-sending tool. Many now offer value-added features that can save you time or money.
Common additional services
- Bill payments directly for utilities services overseas
- Mobile top-ups.
- Multi-language customer support. Like Comun that is available in Spanish.
- Transaction histories and downloadable receipts.
- Rate alerts to notify you when the exchange rate is favourable.
What to look for?
- Tools that simplify your overall financial support for your family and friends.
- Support available that is adapted to your needs.
Extra services should add convenience not complexity. For example, at Comun you can either use your own debit card to fund the remittance, or open a Comun checking account if you don’t have a debit card.
Choose the right remittance service provider for your needs!
There’s no one-size-fits-all for a remittance service provider. Some people value speed, others care about the costs, while others need in-person services or cash pickup locations. To get the most out of your next transfer, focus on what matters to you whether it’s:
- Transparent fees.
- Competitive exchange rates.
- Simple documentation.
- Useful additional services.
- Strong security and customer support.
Taking a few minutes to compare the options with different service providers can make a significant difference in what your family and friends receive and how you optimize your finances according to your needs.
Comun offers remittances services where you can either use your own debit card, or open a checking account with Comun if you don’t have a debit card. With Comun there are no annual nor monthly fees. Furthermore, Comun’s services are available in Spanish. Download our app or reach out if you’d like to learn more about Comun.
What should I compare between remittance providers?
The transfer fee, the exchange rate offered, how long the money takes to arrive, and whether the recipient can pick it up in cash or only receive it into a bank account.
Why does the exchange rate matter, not just the fee?
Some providers advertise low fees but apply a less favorable exchange rate, which reduces the final amount your family receives. Común shows the exact amount before you confirm.
What delivery options does Común offer?
Bank account deposit or cash pickup at locations like Elektra and Oxxo in Mexico.
Frequently asked questions
What matters more, the fee or the exchange rate?
Both matter — a low fee with a poor exchange rate can end up costing more. Always check the final amount your family will receive.
How much does Común charge to send a remittance?
Starting at $2.99 per transfer, with your first transfer at no cost.
How do I know exactly how much my family will receive?
The app shows you the exact amount in the destination currency before you confirm the transfer.
Do all providers offer cash pickup?
No, it varies by provider and country; Común offers cash pickup at locations like Elektra and Oxxo in Mexico.
Is it faster to send to a bank account or pick up in cash?
Both options usually deliver the money within minutes, depending on the method chosen.
How do I verify a remittance provider is trustworthy?
Check that it's licensed in the states where it operates and that it shows the exchange rate and fees transparently before you confirm the transfer.
Financial Education
Exchange Rates and Currency Margins: A Simplified Explanation
8 min de lectura
Introduction: What Is the Foreign Exchange Market?
The foreign exchange (FX) market is the backbone of global trade, since it allows one currency to be exchanged for another. Whether you're traveling abroad, buying international products, or investing overseas, FX plays a crucial role in our financial lives. This article aims to demystify two key FX concepts: exchange rates and currency margins, explaining them in simple terms for new banking customers and anyone unfamiliar with these topics. Understanding these concepts is crucial for customers of Community Federal Savings Bank and other financial institutions that offer banking services.
What Is the Exchange Rate?
The exchange rate is the value of one currency in terms of another. For example, if 1 U.S. Dollar (USD) is worth 0.85 Euros (EUR), the exchange rate is 1 USD = 0.85 EUR. Exchange rates fluctuate based on supply and demand in the foreign exchange market. Several factors influence these rates, including:
- Supply and Demand: If a currency is in high demand, its value increases. Conversely, if there's more supply than demand, the currency's value decreases.
- Central Banks and Government Policies: Central banks, like the Federal Reserve in the U.S. or the European Central Bank, can influence exchange rates through interest rates and monetary policy. For example, higher interest rates offer better returns on investments in that currency, increasing demand and value.
How Do Exchange Rates Affect Us?
Exchange rates impact several aspects of our lives:
- International Travel: When you travel abroad, the amount of foreign currency you get for your money depends on the exchange rate. For Común customers, understanding exchange rates⁴ helps keep your money secure while traveling. Examples of fluctuating exchange rates include: 1 USD = 0.85 EUR or 1 USD = 109.75 Japanese Yen (JPY).
- Cost of Imported Products: Products priced in foreign currencies become more or less expensive depending on the exchange rate.
- International Business and Investment: Businesses dealing with international customers and suppliers, or investing abroad, are affected by exchange rate fluctuations, which influence their costs and revenue.
What Is the Currency Margin (FX Spread)?
The currency margin is the difference between the buy price and the sell price of a currency pair. The buy price is what buyers are willing to pay, while the sell price is what sellers are asking. The spread is essentially the cost of trading currencies.
For example, if the buy price for EUR/USD is 0.84 and the sell price is 0.86, the currency margin is 0.02. This margin is crucial because it represents the transaction cost of exchanging currencies, which is a key consideration for banks and financial institutions.
Why Does the Currency Margin Exist?
Several factors contribute to the existence of the currency margin:
- Market Liquidity: Greater liquidity (more buyers and sellers) generally results in a narrower margin. Lower liquidity leads to a wider margin.
- Currency Brokers and Financial Institutions: These intermediaries set the buy and sell prices, factoring in their profit margins.
- Transaction Costs: The costs of executing trades and maintaining currency inventories are also built into the margin.
How Does the Currency Margin Affect Transactions?
The currency margin impacts the cost of exchanging money. A smaller margin means lower costs, while a larger margin increases the cost. Here are some examples:
- Small Margin: If the buy-sell margin is small (for example, 0.01), the transaction cost is low, making it cheaper to exchange currency.
- Large Margin: A larger margin (for example, 0.05) means higher transaction costs.
To minimize the cost of exchanging currency, consider:
- Comparing Rates: Look for the best exchange rates and lowest margins, especially when using Community Federal Savings Bank banking services.
- Timing: Exchange money when market liquidity is high, typically during business hours in major financial centers.
Real-World Examples:
Understanding currency margins can help you make better financial decisions:
- Traveling Abroad: When exchanging money for a trip, the currency margin affects how much foreign currency you receive. Común¹ account holders can keep their money secure by understanding these margins.
- Online Shopping: Buying products on international websites involves currency conversion, where the margin influences the total cost.
To check the current exchange rate and currency margin, use online currency converters and financial news websites. Financial inclusion matters, and platforms like Común offer tools and support to help Latino immigrants and other users manage their money effectively.
Conclusion: Stay Informed
In summary, the exchange rate determines the value of one currency against another, while the currency margin is the cost of trading currencies. Understanding these concepts is essential for making informed financial decisions, whether you're a new banking customer or new to the world of FX. Stay informed and use this knowledge to navigate the complex world of currency exchange more effectively.
Additional Resources
- FDIC-Insured Banks: Make sure your funds are safe by choosing FDIC-insured banks like Común.
- Support and Security: Común offers customer support and security features to protect your personal information and funds.
- Remittances: For Latino families and immigrants, understanding exchange rates can help send money abroad efficiently.
Understanding exchange rates and currency margins can have a significant impact on your financial transactions. By staying informed, you can make better decisions and optimize your currency exchanges, improving your overall financial health.
Financial Education
Digital Banks in the United States: How to Open Your Account Easily and Quickly
8 min de lectura
Digital Banks in the United States: A Clear Guide to Opening Your Account
Having access to affordable financial services with features that let you carry out multiple operations in one place is essential for immigrants living and working in the United States.
Digital banks are a comprehensive solution that combines financial management with mobile technology to streamline processes compared with traditional banks.
These features are especially beneficial for immigrants looking for an alternative to access services that are often less feasible through institutions with physical branches.
In this guide, we explain why you should consider integrating digital banking into your lifestyle, how to open an account, and options for digital banks in the United States.
What Is a Digital Account and How Does It Work?
A digital account is a financial product that operates entirely online through mobile applications and digital platforms (website), removing the need to travel to a physical location to complete banking operations.
Here are some benefits of digital accounts.
- Mobility and 24/7 access from anywhere: they are not limited to teller hours and allow transactions at any time and place.
- Convenience for making payments and international money transfers: they allow sending money within and outside the country quickly.
- Security and transaction control from the app: they include safeguards to prevent misuse of personal data and crimes such as fraud.
How to Open a Digital Account in the United States Step by Step
Opening a digital account is usually simpler than with traditional financial institutions—not only because it can be done from a mobile device, but also due to flexible requirements that allow immigrant communities to access financial services with the same quality standards.
These are the steps to open a digital account in the United States.
Required Documents
Unlike traditional banking services, you can open a digital account with documents you use day to day.
- Official identification from your home country (valid passport, consular ID, driver’s license).
- In some cases, proof of address in the United States.
Account Opening Process
Once you have your documents ready, follow these steps.
Step 1. Register on the digital platform/mobile app.
Go to the digital bank’s website or mobile application of your choice and enter your personal information to register.
Step 2. Identity Verification and Approval.
For security reasons, digital banks require an identity verification process that includes submitting an official ID, a selfie, and, in some cases, facial recognition.
Step 3. Account Activation and Access to the Mobile App.
Once the digital bank verifies your identity, you’ll receive an activation notice. Immediately afterward, you can access all services, set up direct deposits, send money in real time, and manage your finances.
U.S. Financial Platforms Recommended for Immigrants
If you’re wondering which digital platform for immigrants is ideal, there are several effective options, so it’s best to compare them and choose the one that best fits your expectations.
Común
Fees: Affordable fees for international money transfers to Latin America.
Ease of use: Open an account from a mobile device with a qualifying official identification from your home country.
Spanish support available: offers 24/7 customer service also available in Spanish via WhatsApp or the mobile app itself.
Mobile access: you have access to a mobile app for comprehensive financial management.
Zelle compatibility: not integrated.
Ally Bank
Fees: most accounts do not charge monthly maintenance fees. Approximately $20 for domestic wire transfers.
Ease of use: a 100% digital platform offering a mobile application and a website.
Spanish support: limited Spanish-language service.
Mobile access: service compatible with mobile devices.
Zelle compatibility: integrated.
Wells Fargo
Fees: maintenance and overdraft fees vary by account type.
Ease of use: offers mobile banking, online banking, and a digital assistant.
Spanish support: available.
Mobile access: full mobile features.
Zelle compatibility: integrated.
Revolut
Fees: charges a 1–3% fee for adding money via credit or debit card.
Ease of use: offers comprehensive, easy-to-use digital products.
Spanish support: you can change the app language, but there is no Spanish-language support.
Mobile access: fully available.
Zelle compatibility: not integrated.
Mercury
Fees: offers international USD transfers at no additional cost.
Ease of use: focused on corporate and tech companies.
Spanish support: not available.
Mobile access: fully available, but more focused on web dashboards.
Zelle compatibility: not integrated.
Cash App is another efficient financial platform—here we explain its benefits.
The Importance of Using Your Account Safely and Efficiently
Although digital platforms offer security measures to protect your assets, it’s always wise to keep the following recommendations in mind to reduce risks.
- Set up transaction notifications and security alerts: they help you stay on top of your activity and detect any suspicious behavior.
- Use strong passwords and enable two-step verification: this reduces the risk of falling victim to hackers.
- Review activity regularly and learn to identify suspicious alerts: check text messages and transaction notifications, and report any unrecognized charges immediately.
- Take advantage of the mobile app’s functionality for quick and reliable transfers: send and receive money easily within and outside the United States.
Discover Común, the Financial Option for Immigrants
In this article, we presented a practical alternative to traditional institutions so you can decide which digital bank in the United States fits your needs.
Común is not a bank, but a digital platform, it offers a mobile app and a debit card that work together to provide a service ideally for the immigrant community.
You can open an account with qualifying official identification from your home country and a mobile device to access the financial service you deserve.
Open your account with Común and start sending, receiving, and withdrawing money.
Frequently Asked Questions (FAQ)
If you still have questions, see the section below.
Can I open a digital account without a Social Security Number?
Unlike traditional banks, digital accounts often have more flexible requirements, and it may be possible to open one with a qualifying official identification from your home country and, in some cases, proof of address in the United States.
Are digital banks in the U.S. safe?
Yes, digital banks in the United States have security measures such as two-step verification and encryption. It’s advisable to apply all possible security measures, such as using a strong password and enabling notifications.
International Money Transfers
Alternatives to Western Union: Explore Reliable Options for Your Remittances
8 min de lectura
There is no doubt that Western Union has established itself as a leading company in the remittance industry, with over 145 years in the market.
Since its inception, Western Union has enabled people without access to a banking account to make quick money transfers, which has been particularly significant for rural and immigrant communities in the United States.
According to recent data, in 2023, 12% of remittances sent from the United States to Latin America and the Caribbean were carried out through Western Union, making it one of the leading money transfer services worldwide.
Today, remittances are essential to the lives of millions of Latin American migrants in the United States. In this article, we address alternatives to Western Union that solve problems such as high fees, unfavorable exchange rates, and complicated processes by offering more modern, accessible, and fair financial services.
Why Look for Alternatives to Western Union?
For over a century, Western Union has worked to bring families together through international money transfer services, offering multiple delivery options and broad coverage.
However, over the years, new services have emerged that address areas where Western Union can improve, such as:
High and Variable Fees
One of the main challenges faced by the immigrant community in the United States when sending money is the high money transfer fees, which significantly affect the final amount received.
For example, according to Western Union’s price calculator, the cost to send $500 USD to Mexico via an agency with cash pickup is $15 USD.
Uncompetitive Exchange Rates
In addition to fees, international transactions involve currency exchange, which can be detrimental to the recipient depending on the exchange margin used.
In the previous example of using the Western Union price calculator, the dollar exchange rate is 18.17 MXN, compared to the official rate of 18.64 MXN, meaning the recipient receives 9,081 MXN instead of 9,320 MXN.
Limits and Restrictions
Another factor that may negatively impact migrants sending remittances to Mexico is the limits and restrictions imposed, depending on factors such as payment method, receiving country, and identity verification.
Generally, for unverified users, the limit to send cash through Western Union is $3,000 USD per transaction. Upon verifying identity, that amount may increase.
Transaction Speed
The speed of money transfers through Western Union depends on the payment and delivery method, as detailed below:
- Debit/credit card to cash: minutes
- Debit/credit card to bank deposit: 1–2 business days
- Banking account to cash: 3–5 business days
- Banking account to banking account: up to 5 business days
- In-person cash to in-person cash: minutes
- Wire transfer to mobile wallet: up to 24 hours
Accessibility and Convenience
Western Union is known for its global reach and the accessibility of its international money transfer services.
However, for these same reasons, long lines and wait times may occur. If you need to speed up your transactions, this large-scale service might not be your most favorable option.
9 Alternatives to Western Union for Sending Money Home
If Western Union doesn't suit your needs, here are the best money transfer apps.
Comun
Comun is a comprehensive platform that not only allows money transfers within and outside the U.S., but also gives you access to a complete and efficient financial experience, including easy access to cash.
Enjoy 24/7 support also available in Spanish, and pay transparent fees starting at $2.99 USD for international money transfers, with no hidden fees.
Ria Money Transfer
Ria Money Transfer is a service similar to Western Union. It has coverage in a large number of countries worldwide and offers different payment and delivery methods, as well as partnerships with retailers like Walmart.
Wise (previously TransferWise)
Wise is a U.K.-based financial technology company that facilitates international money transfers and offers benefits such as a multi-currency account and real exchange rates.
Remitly
Remitly is a fintech that operates primarily in the United States, Canada, and Australia. It allows money transfers with options for cash pickup, bank deposit, or mobile wallet. While it is a good option for sending remittances to Latin America, it has fees and exchange rates that are not very competitive.
WorldRemit
WorldRemit is a global money transfer service with a presence in over 130 recipient countries. In addition to offering cash pickup and bank deposit options, it also allows transfers through mobile phone top-ups.
PayPal/Xoom
Xoom is a remittance company acquired by PayPal. It offers money transfers with multiple delivery methods, such as bank deposit, cash pickup, mobile wallet, or direct delivery.
MoneyGram
MoneyGram is a U.S.-based company specializing in international money transfers and person-to-person (P2P) payments. It operates in over 200 countries with various payment options.
OFX
OFX is a company specializing in international money transfers and currency exchange, with a presence in over 190 recipient countries.
Revolut
Revolut is a U.K.-based fintech offering multi-currency digital accounts, international money transfers, and investment services.
How to Choose the Most Suitable Alternative for Your Remittances
If you are still wondering which money transfer app is right for you, remember to consider the following factors before selecting an alternative to Western Union:
Fees and Real Exchange Rate
It is advisable to look for a payment service provider with clear, flat fees to ensure your family receives the maximum possible amount.
Transfer Speed
While in many cases, most apps offer quick money transfers, in others, the waiting time could be problematic for the recipient.
Sending and Withdrawal Methods
Make sure the sending methods suit your needs, whether via banking account, credit or debit card, or cash delivery.
Coverage in Your Country
Verify that the money transfer service has coverage in Latin America, and that this does not involve additional shipping fees.
Ease of Use and Customer Support
It is important to communicate easily in case of any issues. Choose an option with 24/7 Spanish-language support.
Security and Trustworthiness
Ensure the service has the necessary licenses and regulations for the places where it operates, as well as the appropriate security measures to protect your data.
Comun: A Great Financial and Remittance Alternative Designed for the Immigrant Community in the U.S.
Although Western Union is an excellent option for sending money abroad, there are better alternatives with more competitive and fair conditions that can make your money, and your family’s, go further.
It is essential to research and compare each international payment service in order to choose the option with the most suitable benefits for you.
Comun offers you an all-in-one service that allows low-cost international money transfers, along with a complete financial experience in your language.
- Open your account easily using official documentation from your country
- Make your first international money transfer free, and afterward pay a fee starting at $2.99 USD per transfer, up to the applicable limits
- Deposit cash at over 88,000 retail locations in the U.S.
- Manage your finances through a mobile app
- Access to Spanish-language support 24/7
Open your account today and discover an alternative to Western Union.
Frequently Asked Questions
Is it safe to use digital alternatives to Western Union?
Comun uses secure technology and follows U.S. financial regulations to help protect your money transfers. You can also choose from multiple payment and delivery options.
What are the hidden costs when sending money internationally?
International money transfers generate fees, in addition to the currency conversion rate.
Can I send money to a country if I don’t have a banking account?
With Comun, you can send cash even if you don’t have a traditional U.S. banking account.
What do I need to open an account with services like Comun?
A compatible Android or iOS phone and an official ID from your country.
How long does a money transfer take with these alternatives?
Money transfers with Comun are reflected within minutes or hours.
Disclosures (in footer):
“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.”
International Money Transfers
Remittance services: how to send money to Latin America
8 min de lectura
Remittance services: sending money to Latin America
For millions of Latin Americans living in the United States, sending money back home is part of everyday life. For many, their families and friends back home often depend on fast and reliable remittances from the United States. Today, there are many service providers for sending money to Latin America available in the market, each offering different advantages and disadvantages and choosing the right one is key to make the most out of your hard-earned money. A useful approach is to understand how remittance pricing works, what factors affect the total cost, and how to compare the services based on your specific needs.
How to measure the real cost of a remittance?
The real cost of a remittance is determined by different elements:
- The transfer commission.
- The exchange rate being offered at the moment.
- Additional service fees.
- Delivery method.
- Transfer speed.
- Promotional pricing conditions.
In practice, the exchange rate often has the biggest impact on how much money the recipient actually receives. For example, two providers may advertise similar fees while delivering noticeably different final amounts because of the FX spread built into the exchange rate.
What is the FX spread?
The FX spread is the difference between:
- The real market exchange rate (this is also called the mid-market or interbank rate)
- The exchange rate the service provider gives you
This difference is where some remittance service providers generate revenue. The same reason why two services with the same "$0 fee" can have very different final costs.
The most popular remittance services used by Latin Americans in the U.S.
Different services work better for different types of users. Here you can find a general overview of the providers most commonly used by the Latino communities in the United States.
Western Union
Western Union is one of the largest remittance companies in the world, with an extensive cash pickup network across thousands of locations in Latin America.
Strengths:
- Large global network
- Cash pickup availability
- Multiple delivery methods
Limitations:
- Exchange rates may vary significantly
- Fees depend on payment method and destination
Ria Money Transfer
Ria Money Transfer offers payments from the US to more than 165 countries across the world, with delivery options including cash collection and delivery to either a mobile money wallet or bank account.
Strengths:
- Wide coverage
- Competitive options in some corridors
- Cash pickup availability
Limitations:
- Pricing varies depending on country and delivery method
- Exchange rate competitiveness changes daily
MoneyGram
MoneyGram is a service provider of international remittances that enables individuals to send and receive money internationally and domestically.
Strengths:
- Extensive cash pickup network
- Fast transfers in some cases
- Availability in multiple countries
Limitations:
- Fees and FX spreads can vary widely
- Final cost depends heavily on transfer method
Félix Pago
Félix Pago is a WhatsApp-based platform focused on servicing the Latino community in the U.S. to send money throughout Latin America.
Strengths:
- Mobile-first experience
- Speed and convenience
Limitations:
- Coverage and features may vary by destination
- Transfer economics depend on corridor and timing
- Not every user prefers chat-based transfers
Común
Común offers the possibility to open a debit account in the USA and send money home from Común's app or WhatsApp.
Strengths:
- Spanish-first app and customer support
- Convenient with a mobile-focused experience
- Promotional FX rate available on the first transfer
- Accepts more than 100 Latin American IDs to open a debit account
- Transparent fees
Limitations:
- Exchange rates and transfer costs vary daily
- The final recipient amount depends on the destination country, transfer method, and market conditions
Remittance services: a general comparison
Today, the remittance service provider market in the U.S. can be divided into two major categories:
Traditional remittance agencies
Companies that offer physical networks and cash pickup infrastructure. For example: Western Union, Ria Money Transfer or MoneyGram.
Fintech alternatives
These platforms focus on mobile experience, transparent pricing, digital account management, accessibility for immigrants in the U.S. and some offer Spanish-first experiences. Examples: Común and Félix Pago.
Why do comparisons matter?
Exchange rates change every day and promotional offers can also change. This is why it's important to compare what's the best service provider for your current situation. If possible, it is recommended to use a tool to have a better perspective on your remittance costs. For example Común has a live calculator at comun.app/compara designed to help you understand the exact conditions of your transfer.
Beyond the exchange rate
For many immigrants in the United States, choosing the best remittance services is not just based on who offers the best exchange rate. The accessibility to the services can shape the entire experience of sending money. Some people may not have a Social Security Number, a traditional U.S. bank account, or an easy way to verify their identity through conventional financial systems. Language can also play an important role for navigating financial apps especially with customer support and understanding the specific transfer policies. Being able to do financial transactions in a native language can make transactions feel less stressful.
The competitive market landscape in the U.S. makes it possible for Latin American immigrants to compare options for their remittances. Today, you can look beyond the exchange rate and consider factors like Spanish-language support, flexible identification requirements, mobile accessibility and transparency around fees and/or transfer conditions. The best remittance service provider is the one that offers pricing, services and access that fit your needs. Común's app is available in Spanish, accepts more than 100 Latin American IDs and offers transparent fees.
How to choose the right remittance service for your situation?
There is no universal "best" remittance provider. The right option depends on how often you send money, where you are sending it, how your recipient receives the funds, and what kind of financial access you have in the United States. Choosing based on your own priorities is often the best path.
If this is your first transfer
Many remittance services offer promotional pricing or preferred exchange rates for first-time users. These promotions can temporarily improve the amount received by your family, but they do not always reflect the long-term cost of using the platform.
For example, some digital services may offer stronger FX rates on the first transfer, while traditional providers occasionally waive transfer fees for new customers. However, the total value still depends on the exchange rate, transfer speed, and delivery method.
Before sending your first remittance, it is important to consider:
- The final amount your recipient will receive
- If the promotion applies to your destination country
- Delivery times
- Bank deposit vs cash pickup options
To compare exchange rates you can always use a tool, for example, comun.app/compara is designed to help people understand the cost of their transfer.
If you do not have an SSN
Access to financial services can vary significantly for immigrants in the United States, especially for people who do not have a Social Security Number. This can make onboarding slower or more complicated for recent immigrants, ITIN holders, or people primarily using foreign identification documents.
Some remittance service providers have adopted more flexible verification models. Común, for example, accepts more than 100 Latin American IDs. It is recommended to check with every institution their specific verification requirements.
If you send money regularly
People who send remittances every month can benefit more from consistency than from temporary promotions. For frequent senders, it can be useful to review:
- Ongoing exchange rates
- Fee transparency
- Recurring transfer options
- Convenience: for example mobile app or WhatsApp transfers
- Customer service availability
If your family depends on cash pickup
Cash pick-up continues to play a major role across many parts of Latin America, especially in smaller cities or rural communities where bank access may be limited.
Traditional remittance companies like Western Union, Ria Money Transfer, and MoneyGram offer large physical networks that allow recipients to collect money in person at supermarkets, convenience stores, banks, and local partner locations.
Before choosing a provider, it is helpful to verify:
- Whether cash pickup is available in the destination city
- Pickup hours and accessibility
- Transfer speed
- Identification requirements for recipients
- Maximum transfer limits
In some cases, the best service is simply the one your recipient can access easily. Común offers cash pick ups with options in some stores and banks.
If you prefer convenience: mobile-first experiences
Over the past years, mobile-first experiences have become popular given the convenience of being able to send remittances from one's mobile phone.
Digital-first services can offer:
- Faster onboarding
- Mobile transfers
- Real-time notifications
- Simpler account management
Platforms like Común and Félix Pago are examples of services designed around mobile experiences for Latino immigrants. For people who feel more comfortable managing their transfers from their phones, these platforms can feel faster and more convenient.
FAQ
What is the cheapest service to send remittances to Latin America?
There is no single service that is always the cheapest. Costs depend on exchange rates, transfer fees, destination country, payment method, and whether you qualify for a first-transfer promotion. The best way to verify your exact case is to compare providers.
What is the FX spread and why does it matter when sending remittances?
The FX spread is the difference between the real market exchange rate and the exchange rate offered by the remittance provider. A weaker exchange rate can reduce the amount your recipient receives.
How can I verify the real cost before sending a remittance?
The best way is to compare the total recipient amount, exchange rate, fees, and promotional conditions before sending money. Some service providers offer tools that calculate the costs before sending the remittance. Común's live comparison calculator is designed to help users verify this information in real time.
Do all remittance services offer cash pickup options?
No. Some remittance providers specialize in bank deposits or digital wallet transfers, while others maintain extensive cash pickup networks across Latin America. Before sending money, it is important to confirm how your recipient prefers to receive funds and whether pickup locations are accessible in their area.
Why do exchange rates change between remittance providers?
Each provider sets its own exchange rates based on market conditions, operating costs, transfer corridors, and promotional strategies. Because rates can change daily, comparing providers before each transfer can help users better understand the total cost of sending money.
Final thoughts
The remittance industry has changed significantly over the past decade, today sending money to Latin America is no longer limited to one type of service or provider. Immigrants in the United States can choose between traditional cash pickup networks, digital-first platforms, and hybrid financial services depending on what works best for their families.
For many people, the real value comes from the full experience from the convenience of usage, accessibility to the services and knowing exactly how much money will arrive can matter just as much as costs. Común offers transparent pricing, an app available in Spanish and a comparison tool that helps users review transfer costs before sending money.
Living in the United States
Everything You Need to Know About Bank Accounts in the
8 min de lectura
Bank Accounts
Having a bank account is essential for managing your financial life efficiently and offers numerous practical benefits. One of the main advantages is safe money storage. Unlike keeping cash at home, which can be vulnerable to theft, loss, and damage, money kept in a bank account is safe and protected. Additionally, bank accounts provide great convenience for everyday transactions. You can easily pay bills, receive direct deposits, withdraw cash, and make purchases with a debit card linked to your account. Modern banking also lets you manage your finances from virtually anywhere through online and mobile banking platforms.
Types of Bank Accounts: Checking and Savings
In the world of personal finance, understanding the different types of bank accounts is crucial.
- Checking Accounts: Checking accounts, often called personal checking accounts, are designed for everyday transactions like depositing money and debit card purchases. They frequently come with the option of direct deposits and online bill pay. Understanding the differences between checking and savings accounts is essential, especially when considering banking promotions and bonuses that often feature specific offers for opening new checking and savings accounts, including direct deposit requirements and minimum deposits to qualify for cash bonuses.
- Savings Accounts: Savings accounts, including specialized forms like a Barclays savings account, are meant for storing money over a longer period, often with the goal of building an emergency fund. These accounts may offer a higher interest rate and sometimes require a minimum balance. Combining checking and savings accounts can provide a comprehensive banking solution, offering both the flexibility of everyday transactions and the benefit of earning interest on long-term savings, which is particularly advantageous when banks offer promotions and bonuses for these accounts.
- Money Market and CD (Certificate of Deposit) Accounts: Generally offer higher annual percentage yields than regular savings accounts, locking in funds for a specified period to achieve better returns.
Understanding these options helps align banking services with your financial goals, whether you're considering opening a business checking account or a joint savings account at the same bank or credit union.
Opening Your First New Bank Account
To open an account, particularly a new online bank account, start by choosing the right financial institution — it could be an online-only bank, a traditional bank, or a credit union, depending on your financial needs and preferences. Consider factors like accessibility, customer service, fee structures, and the availability of online and mobile banking features when selecting where to open your account.
The process generally involves making an initial deposit, which can vary but is often a minimum opening deposit. Meeting the minimum deposit is crucial to qualify for account bonuses. Some institutions may require only a few dollars, while others may ask for a larger amount, especially for premium or specialized accounts. During the account-opening phase, you'll need to provide personal information like a Social Security Number or an Individual Taxpayer Identification Number, and a government-issued ID, like a passport or driver's license. This information helps the bank ensure compliance with regulatory requirements, including those related to money laundering.
Many banks offer bank account bonuses or a checking account bonus to new checking account customers, which can be an attractive incentive. Opening a personal checking account in America comes with specific bonuses and rewards, including cash bonuses for meeting certain requirements like a qualifying direct deposit. To qualify for these bonuses, customers often need to meet criteria like a minimum deposit within a certain timeframe and maintaining that balance for a specific period. For example, some financial institutions offer cash bonuses for setting up a qualifying direct deposit. This incentive often requires you to receive a regular payment, like a salary or a government benefit, directly into your new account within a certain period of opening the account. Be sure to understand the terms and conditions associated with these bonuses, like minimum balance requirements and the duration of direct deposits.
Additionally, ask about any potential fees associated with the account, like monthly maintenance fees, ATM usage fees, and overdraft charges. Sometimes, banks offer fee waivers under certain conditions, like maintaining a minimum balance or even by enrolling in direct deposit. It's also worth asking about the bank's overdraft policies. Some banks offer overdraft protection programs, which can keep you from incurring fees if you accidentally overdraw your account. This service can be a lifesaver for new account holders unfamiliar with managing their balance, but it typically comes at an additional cost.
Finally, consider the bank's customer service and support options. Reliable customer support can be invaluable, especially if you run into issues with your account or need guidance on using banking services. By carefully considering these aspects, you can ensure your first banking experience is positive and financially beneficial. Remember, the right bank for someone else might not be the right bank for you, so choose based on your specific circumstances and financial needs.
Común Is a Great Choice for Your Banking Needs in the USA
If you're looking for a reliable, modern banking solution in the United States, Común is the perfect choice for you. Común is a digital bank designed for everyone, especially the immigrant community, offering a hassle-free banking experience, no hidden charges, and Spanish-language tools that make managing your finances easier. With Común, you can open an account in minutes from your phone, get your complimentary debit card, and start enjoying benefits like no-cost transfers, direct deposits, and access to more than 55,000 fee-free ATMs nationwide. Plus, Común cares about your security, implementing advanced measures to protect your money and your data. Don't wait any longer — join the Común community for a banking experience that understands and supports your unique needs.
Open your checking account¹ in 3 minutes with your country's ID²
More Information About Bank Accounts in the United States
We explain your account number
Best practices for managing your account
Effective Account Management
Effectively managing bank accounts goes beyond simply monitoring balances — it involves a comprehensive approach to financial administration. This means understanding and reducing account fees, which can include monthly maintenance, ATM usage, and overdraft charges. One way to minimize these fees is by meeting minimum balance requirements or enrolling in direct deposit, since many banks offer fee waivers under these conditions.
Using online and mobile banking tools is essential for efficient financial management. These platforms allow real-time transaction monitoring, immediate fund transfers, and quick access to statements and banking documents, which can help with budgeting and tax preparation. Setting up automatic bill payments is another crucial feature, ensuring all payments are made on time, avoiding late fees and service interruptions.
For those managing multiple accounts, like a business checking account and a personal checking account, linking these accounts can simplify money management. It allows easier transfers between accounts and a consolidated view of finances, which is particularly beneficial for small business owners who need to keep personal and business expenses separate. Additionally, having multiple bank accounts can offer significant benefits, like separating funds for different purposes — such as everyday expenses, savings, and investments — and meeting individual or joint financial needs, including for international travel or business purposes.
Additionally, mobile banking has revolutionized access to financial services, letting users complete a variety of banking tasks from their devices, like checking balances, depositing checks remotely, and withdrawing cash from ATMs without a physical card. This convenience, however, needs to be balanced with diligent security practices to protect financial data.
Security and Protection
Account security is critical for protecting financial assets from potential threats like fraud and identity theft. Banks, whether online or traditional, implement robust security measures, including encryption, Secure Sockets Layer (SSL) certificates, and continuous monitoring for suspicious activity. However, responsibility also falls on the account holder to improve their personal security.
Enabling two-factor authentication adds an extra layer of security, significantly reducing the risk of unauthorized access. Using strong, complex passwords and changing them regularly are fundamental practices for securing online banking portals. Account holders should also be alert to phishing scams — fraudulent attempts to obtain sensitive information. Recognizing suspicious emails, links, or phone calls requesting personal banking information is crucial.
Regularly monitoring account activity is another proactive security measure. Many banks offer customizable alerts that immediately notify the account holder of unusual or large transactions, allowing quick action against unauthorized access. It's also advisable to frequently review transaction history to identify any irregularities that might indicate fraudulent activity. Additionally, understanding the latest banking security technologies and using all available tools provided by financial institutions can significantly improve the security of banking operations. These tools include biometric verifications, like fingerprint and facial recognition, which offer a higher level of security than traditional passwords.
By incorporating these advanced management and security practices, people can significantly improve both the efficiency and security of their banking experience, ensuring their financial assets are managed wisely and protected against potential threats.
Conclusion
Navigating the complexities of bank accounts — from choosing the right type to managing and securing them — can significantly impact your financial well-being. Understanding the various account types available, from personal and business checking accounts to savings and CD accounts, lets you make informed decisions that align with your financial goals. Opening your first account is a crucial step that lays the groundwork for building a robust financial future. By selecting the right financial institution, understanding fee structures, and taking advantage of incentives like account bonuses, you position yourself to maximize the benefits of banking.
Effective account management and vigilant security measures are essential to getting the most out of your banking experience. Using online and mobile banking tools not only provides convenience, but also lets you keep close oversight of your financial activities, ensuring your money works for you as efficiently as possible. Additionally, the importance of security can't be overstated — protecting your financial information from fraud and theft is paramount in today's digital age.
Ultimately, carefully managing and protecting your bank accounts is crucial to maintaining financial health and reaching your monetary goals. By adopting the practices outlined in this guide, you can confidently navigate the banking landscape, making informed decisions that strengthen your personal and business finances. Whether you're opening your first account or optimizing existing ones, remember that every step you take is a building block toward greater financial security and freedom.
Financial Education
How to Call Colombia from the United States in 2025
8 min de lectura
How to call Colombia from the U.S. in 2025 easily and affordably
The Colombian community has a strong presence in the U.S., with many immigrants arriving each year to visit, live, study, and work.
Staying in touch with family across borders matters. That’s why it’s useful to know the different ways to make international calls from the U.S. While it can seem tricky, it’s easy if you have the right codes.
If you want to call loved ones back home in Colombia, below you’ll find step-by-step dialing instructions from the U.S., examples, and a full area-code table.
Basic steps to call Colombia from the USA
Before calling anyone in Colombia, know the sequence: international prefix + country code + local number.
1. Enter the U.S. exit code – 011
This is the international prefix from a landline. If you’re using a mobile phone, use the “+” sign instead.
2. Dial Colombia’s country code – 57
This identifies Colombia in the international telephone system.
3. Dial the local number in Colombia
For landlines include the city area code. For mobile phones, dial the full 10-digit mobile number.
Examples:
- Call Bogotá (landline): 011 + 57 + 1 #######
- Call Medellín (landline): 011 + 57 + 4 #######
Area codes and dialing examples for Colombian cities
There’s a difference between calling a landline and a mobile in Colombia from the U.S.: landlines need the regional area code; mobiles are dialed using the “+” format on cell phones.
Below you’ll find the area codes for Colombia’s main cities to ensure you dial correctly when contacting your family.
City
Area code
U.S. dialing example
Bogotá
1
011 57 1 #######
Medellín
4
011 57 4 #######
Cali
2
011 57 2 #######
Barranquilla
5
011 57 5 #######
Cartagena
5
011 57 5 #######
Bucaramanga
7
011 57 7 #######
Pereira
6
011 57 6 #######
Cúcuta
7
011 57 7 #######
Santa Marta
5
011 57 5 #######
Manizales
6
011 57 6 #######
Digital alternatives and budget-friendly plans to call Colombia
The phone is a favorite way to bridge distances and stay in touch with loved ones across borders.
Years ago, international rates were expensive, making frequent calls home difficult.
Today, digital options have lowered costs and made cross-border communication much easier.
Below we show some affordable options to help you stay in touch with the people who matter most.
- Internet-voice apps (VoIP):
Mobile apps are hugely popular worldwide. They enable texting, voice notes, and voice/video calls over Wi-Fi or data—significantly cutting costs.
WhatsApp is the most popular, and other solid options include FaceTime, Google Voice, and Skype.
- International calling plans from your U.S. carrier:
If you prefer traditional calling, look for an international plan from your U.S. provider with minutes to Colombia—great for frequent calls.
You can pick plans with minutes to landlines and mobiles or Colombia-specific bundles.
Examples of U.S. carriers include AT&T Prepaid, T-Mobile, Verizon, and Ultra Mobile. Options range from unlimited international add-ons and prepaid plans with international calling to limited-minutes bundles and mixed data/calling packages.
- Prepaid calling cards as a flexible option:
If you’re in the U.S. for only days or weeks, a mobile plan may be overkill. A prepaid calling card can be ideal—no PINs in many cases and you only pay for the minutes you use.
Stay connected with family in Colombia with Común
As you’ve seen, calling Colombia from the U.S. is straightforward—just use the correct codes. You can also choose affordable alternatives like mobile apps or prepaid cards.
Staying in touch shows care and support. It also helps to have accessible services to send money and support their well-being.
Meet Común your direct link to the ones you love!
- International money transfers: the simplest way to send remittances to family with fair, transparent pricing.
- Común’s mobile app in Spanish and English: open an account with 100+ eligible official IDs and get support in your language.
Ready to revolutionize how you connect with your finances?
Open your Común account today and complement your calls with a fintech platform that supports your financial life in the U.S.
Frequently Asked Questions (FAQ)
Still have questions? Check our FAQ section below.
What if I don’t dial 011 or “+”?
If you don’t dial 011 from a landline or “+” on mobile, your call won’t be recognized as international and will fail as a local call.
What’s the cheapest way to call Colombia from the USA?
There are several affordable options—apps like WhatsApp, Skype, or Google Voice; prepaid calling cards; or an unlimited international plan. The best choice depends on your habits and how often you call.
How much does it cost to call Colombia from the USA?
Costs vary by method. For example, AT&T offers unlimited add-ons around $15/month and Verizon offers 300 minutes for about $10/month.
Living in the United States
Cashier’s Checks in the U.S.: Costs, Impact on Latinos, and Free Alternatives
8 min de lectura
Why is it so expensive to cash checks in the United States?
Without a bank account, people must turn to check-cashing stores that charge between 1% and 3% of the check amount. For a $1,000 check, that means $10-30 lost on each cash-out. Banks may also charge fees for depositing checks from other banks.
Why do Latinos disproportionately bear these costs?
Latino communities have less access to banking services because of barriers such as SSN requirements, language, and unfamiliarity with the system. Without a bank account, they are more likely to use check-cashing stores located in low-income areas that charge high fees.
Solutions for cashing checks at no cost
The best solution is to open a bank account. Común is a Spanish-language digital bank that allows you to open an account without an SSN using a passport or consular ID card. Once opened, you can deposit checks for free from the app using mobile deposit. There are also nonprofit organizations such as UnidosUS that offer free financial services to Latino communities.
Frequently asked questions about cashing checks in the U.S.
How much does it cost to cash a check in the U.S. without a bank account?
Check cashing stores typically charge between 1% and 3% of the check amount, with a minimum of $3-5. For a $1,000 payroll check, that means losing between $10 and $30 on each cash-out. Walmart Money Center charges lower fees ($4 for checks up to $1,000), but the cost is still higher than having a bank account.
Can I cash a check for free in the U.S.?
Yes, with a bank account. If you deposit the check at your own bank, there is no charge. With Común you can deposit checks by photographing them from the app, completely free. Some banks also allow you to deposit checks from other banks at no additional cost using mobile deposit.
Why do Latino immigrants pay more to cash checks?
The main reason is less access to bank accounts. Barriers include SSN requirements, language, unfamiliarity with the system, and fear of formal procedures. Without a bank account, they turn to check-cashing services that charge high fees. Platforms like Común remove these barriers by accepting Latin American IDs without an SSN.
What do I need to deposit a check in Común?
You only need the Común app and the physical check. Open the app, select “Deposit check,” take a photo of the front and back of the check (with your signature on the back), and the money is generally credited in 1-2 business days. There are no additional charges for the mobile deposit service.
What happens if someone pays me with a personal check from someone without a bank account?
Personal checks from people without sufficient funds or without an active account bounce (bounced check). If you deposit that check, the bank may temporarily hold the funds and then debit you the amount plus an NSF fee ($25-35). To receive payments more safely, prefer Zelle, Venmo, or direct transfers instead of personal checks from people you do not know well.
Is it better to receive payroll by check or by direct deposit?
Direct deposit is better in virtually all cases: the money arrives automatically on payday (or earlier with Común), there is no risk of the check being lost or stolen, there are no cashing fees, and you can access the funds immediately. With Común you can set up direct deposit from the app in minutes using your routing number and account number.
Financial Education
What is a certified check and how can you make sure it’s valid?
8 min de lectura
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.
Immigration
What is an immigration sponsor? 4 requirements to be a sponsor in the U.S.
8 min de lectura
For immigrants in the United States, finding a legal way to remain in the country indefinitely can be a long and confusing process. That’s why it’s important to know all the alternatives to help pave the way toward lawful permanent residence.
Getting a sponsor is a path that can help you regularize your immigration status in the United States. A sponsor is a person who assumes legal and financial responsibility for someone who is in the process of regularizing their documents in the country.
Below, we explain in detail what a sponsor is, the income table to sponsor a family member in 2025, and all the forms and documents needed to formalize this process.
What does it mean to be a sponsor in the United States?
In simple terms, a sponsor is a person who takes on legal and financial sponsorship of someone who is in the process of obtaining an immigrant visa or a Green Card.
It’s a measure by which the U.S. Government, through USCIS, ensures the sponsored person will not become a public charge, since sponsorship entails the sponsor’s financial and legal responsibility.
During this process, some terms can be confused and are worth clarifying—namely sponsor and petitioner.
- Petitioner: the person who files the initial application with USCIS.
- Sponsor: the person who provides financial and legal support for the immigrant. If the petitioner doesn’t meet the requirements, a joint sponsor can be added.
On the other hand, there are two relevant forms you should know during this process.
- Form I-864 (Affidavit of Support):
This form is generally used for permanent resident visas, employment-based visas, or family-based Green Cards for immediate relatives.
- Form I-134 (Declaration of Financial Support):
This form is required for temporary or nonimmigrant visas—for example, a tourist or fiancé(e) visa.
4 requirements to be a sponsor in the U.S.
These are the requirements your sponsor must meet to proceed:
- Be a U.S. citizen or lawful permanent resident.
- Be at least 18 years old.
- Live in the United States (have a domicile there).
- Meet the minimum income requirements.
Regarding income requirements, sponsors must meet the minimums set by the Department of Health and Human Services (HHS), which requires household income above 125% of the federal poverty guideline.
Household size includes the sponsor, their spouse, dependent children, and the sponsored immigrant.
Below is a comparative table with the minimum figures by household size.
| Household size | For sponsors on active duty in the U.S. Armed Forces sponsoring a spouse or child | All other sponsors | Alaska | Hawaii |
|---|---|---|---|---|
| 2 | $21,150 | $26,437 | $33,037 | $30,400 |
| 3 | $26,650 | $33,312 | $41,637 | $38,312 |
| 4 | $32,150 | $40,187 | $50,237 | $46,225 |
| 5 | $37,650 | $47,062 | $58,837 | $54,137 |
| 6 | $43,150 | $53,937 | $67,437 | $62,050 |
| 7 | $48,650 | $60,812 | $76,037 | $69,962 |
| 8 | $54,150 | $67,687 | $84,637 | $77,875 |
| Each additional person | $5,500 | $6,875 | $8,600 | $7,913 |
If the sponsor does not meet these minimum incomes, you can turn to a joint sponsor or a household member.
It’s also important to consider some special cases.
- Sponsors with TPS (Temporary Protected Status): cannot be sponsors because they are not permanent residents.
- Humanitarian parole: not eligible to be sponsors unless they obtain permanent residence.
- Armed Forces: U.S. citizens serving in the Armed Forces have more flexible income minimums to sponsor immediate relatives.
What are a sponsor’s responsibilities and how long do they last?
To formalize sponsorship, the sponsor must sign an affidavit committing to provide legal and financial support.
Sponsor’s legal obligations
By signing the affidavit of support, the sponsor commits to providing the financial resources necessary so the sponsored person does not become a public charge.
If the immigrant receives public assistance, such as Medicaid, the U.S. Government may require the sponsor to reimburse those funds.
Duration of sponsorship
Sponsorship has no fixed duration, but it can end when:
- The immigrant adjusts status and obtains permanent residence.
- The immigrant accrues 40 quarters of work and proves it to Social Security.
- The immigrant permanently leaves the country.
Cases where sponsorship does not end
In marriage-based sponsorship, divorce does not terminate the sponsor’s obligations. The same applies if the parties stop living in the same household.
5 documents and forms you need to be a sponsor
Finally, it’s essential to know the documents needed to formalize sponsorship and to assess your sponsor’s eligibility.
Form I-864 or I-134, as applicable
This form serves as an affidavit in which the sponsor commits to meeting their economic and legal obligations to the sponsored person.
There is no fee to file these forms. Unless filed from outside the U.S. through the National Visa Center, in which case Form I-864 costs $120.
Proof of citizenship or permanent residence
The sponsor must present documents proving U.S. citizenship or lawful permanent residence—for example, a passport, Green Card copy, or naturalization certificate.
Tax returns or proof of income
You must provide the most recent annual tax return (Form 1040) and proof of income.
Employer letter, if needed
An employer letter may also be required to confirm the sponsor’s position, salary, and length of employment.
Proof of U.S. domicile
The sponsor must show a U.S. domicile and residence there. Deeds or utility bills can serve as proof.
Organize your finances in the U.S. with Común
Throughout this article, we reviewed in detail what a sponsor is—a person who assumes legal and financial responsibility for an immigrant—as well as the minimum income table and required documents.
Even with a sponsor’s support, it’s important to continue legalizing your situation in the country and to obtain steady work and income.
To that end, it’s vital to manage money well and have fair financial services suited to you.
Discover all the benefits of Común, the financial platform created for immigrants!
- Open your account with qualifying official ID from your country of origin.
- Use the mobile app available in Spanish, transparent and easy to understand.
- Send remittances to LATAM countries with clear and competitive fees.
Open your Común account today and organize your personal finances with clarity and security.
Frequently Asked Questions (FAQ)
If you still have questions, consult our FAQs.
Can I be a sponsor if I don’t have sufficient income?
If your income does not reach 125% of the Poverty Guidelines, you can look for a joint sponsor who must meet the same requirements—per the Federal Poverty Guidelines published annually by the Department of Health and Human Services (HHS).
What happens if the immigrant receives public benefits?
The primary sponsor and joint sponsor are responsible for reimbursing the Government for any public assistance the sponsored immigrant receives.
Financial Education
What is a certified check and how does it work?
8 min de lectura
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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Instant payments
How do I send money through Xoom? Your complete 7-step guide
8 min de lectura
Today, sending money to other countries has become a basic need for millions of immigrants living in the United States.
According to the IDFR ( International Day of Family Remittances) campaign in 2025, over the last decade, immigrants sent around 5 trillion dollars in remittances to their countries of origin, which are essential for food, housing, health, and other basic expenses.
To meet this need, there are applications such as Xoom, a PayPal service for transferring money using various payment methods and in a secure manner.
In this guide, we will review how to send money with Xoom step by step, its main features, and some alternatives to connect with your family outside the U.S.
What is Xoom, and is it safe to send money with this service?
Xoom is a digital transfer network owned by PayPal that operates entirely online and offers different sending options to facilitate transactions.
It has become one of the most popular options for making international digital money transfers, due to the backing provided by PayPal, which gives users a sense of security.
In addition to PayPal’s backing, Xoom has high security standards for transferring money, such as SSL encryption and the VeriSign seal.
Additionally, its services are available to send money from the United States to more than 70 countries, including Mexico, Guatemala, Honduras, Peru, among others.
7 detailed steps to send money with Xoom
To send money through Xoom, just follow the steps below.
Access Xoom (web or mobile application) and sign in or register
You can choose to log in via the website www.xoom.com or the mobile application. Once there, sign in or open an account with your email address. You can also use your PayPal account to access.
Select the destination country and the amount to send
Choose the country to which you want to send the transfer. Then you will see the sending options available for the selected destination.
Choose the sending method
Xoom offers the following payment methods:
- Bank deposit
- Cash pickup at physical locations, such as Oxxo or Elektra
- Mobile top-up
- Bill payment
- Cash delivery
Provide the recipient’s details
The information you must enter is:
- Full name, as it appears on their official ID
- Address
- Phone number
- Bank account (if applicable, depending on the sending method)
Select your payment method
Next, enter the amount you want to send and select the payment method, among which are:
- Linked bank account
- Debit card or credit card
- Available balance in your PayPal account
Review and confirm the transaction
Before confirming the transfer, Xoom will display the details so you can verify they are correct, along with the amount corresponding to fees, as well as the exchange rate used for the currency conversion.
Track your transfer with the tracking number
Obtain a tracking number and check the status of your transfer directly in Xoom’s application or website.
Key aspects to consider when using Xoom
Although Xoom is a popular alternative for making fast and secure transfers, it is important to consider several aspects before choosing this option.
Sending fees
Xoom’s sending fees are not fixed; they depend on the destination country, the amount to send, and the payment method.
Generally, the most expensive method is with a credit card and the least expensive is through an account.
| Platform | Fee | Exchange rate | Delivery time | Delivery options |
|---|---|---|---|---|
| Xoom | From 2.99 USD, depending on the sending type | Less favorable | Minutes to hours | Bank deposit, cash pickup, home delivery |
| Común | Fee starting at 2.99 USD, up to the applicable limits | Competitive (Clarification: Results may vary depending on destination country and sending method) | Minutes | Cash pickup, bank deposit |
Exchange rate
The exchange rate can be another drawback because, in addition to being calculated directly on Xoom’s platform, it varies depending on the selected transfer method.
Sending limits
Xoom imposes sending limits that depend on each account’s verification level. For unverified users residing in the U.S., the daily limit is $2,999 USD. By contrast, verified users can send up to $10,000 or $50,000 USD per day, depending on their verification level.
Receiving options
Xoom has different receiving options, but they may vary depending on the destination country.
In general, it is possible to send money for cash pickup at different payout locations, by bank deposit, top-up, or bill payment.
Security and reliability
Xoom is backed by PayPal, in addition to SSL/TLS encryption to protect your financial information and anti-fraud monitoring to ensure your money reaches its destination.
Delivery times
Generally, money transfers via debit card and cash are reflected within minutes. However, other sending methods, such as bank deposit, can take from 1 business day.
The total time will appear before you confirm your transaction in Xoom’s application or on its website.
Accessibility
Xoom is also available in Spanish and, overall, is easy for migrants in the United States to use.
Modern alternatives to sending money with Xoom: Why is Común a smart choice?
Sending money outside the U.S. is essential, as is having efficient international transfer services such as Xoom. However, there are also more innovative options that offer you greater advantages and lower costs so that your family and friends receive much more.
Común is an innovative and comprehensive financial service that meets the financial needs of users living in the United States, especially immigrants. Unlike Xoom, Común has a specialized focus and transparent fees.
With Común:
- Open your account with an official ID from your country; more than 100 identifications are accepted.
- After your first free transfer, pay a fee starting at $2.99 USD per transfer, up to the applicable limits.
- Access customer service in Spanish and English, available 24/7.
- Get a Visa debit card to make purchases at physical merchants.
- Manage your finances from Común’s mobile platform, where you can sync your external bank account and manage your finances from the Común platform.
Still unsure which option is most convenient for sending money? Discover Común and get to know the easy and safe side of finance.
Frequently asked questions
If you want to learn more, see our FAQ section
How do I send money from Mexico to the United States using Xoom?
It is not possible to send money from Mexico through Xoom, since it only allows transfers from the United States, Canada, and other European countries.
How long does it take for money to arrive via Xoom?
Depending on the sending method, it ranges from minutes to up to 3 business days.
Is it safe to use Común to send money to Latin America?
Yes, Común has the necessary security measures in place to keep your money and personal data safe.
Can I use Común even if I don’t have a PayPal account?
Yes, Común is an independent platform from PayPal, and you can open an account with official ID from your country.
Can I make cash deposits if I don’t have a bank account in the U.S.?
Yes, Común allows you to deposit cash at numerous locations near you.
International Money Transfers
Money Transfers: From Traditional Methods to Digital Innovations
8 min de lectura
Money transfers have evolved from traditional methods like checks and money orders to instant digital solutions. With Común, most international remittances arrive within minutes, with no need to visit a branch.
The financial evolution of money transfer methods from traditional practices to digital innovations marks a crucial shift, revolutionizing how we think about and manage our finances in our bank accounts and beyond. This transition isn't just about technological advancement — it reflects a fundamental shift in user expectations, security standards, and global connectivity, especially in international money transfers and seamless bank account integration.
Accelerating Transactions: The Digital Revolution in Money Transfers
The rise of digital platforms and money transfer apps has transformed the speed and accessibility of transactions. Where bank transfers between financial institutions once took days to complete, digital innovations now enable instant money transfers, letting users transfer money around the world in just a few business days or even instantly. This monumental shift in convenience lets users send money or transfer funds from one bank account to another 24/7, without the traditional visit to a bank or credit union.
These changes encapsulate the journey from traditional methods like bank transfers and bank-to-bank transfers to the digital innovations now dominating our financial ecosystem. As we continue exploring these developments, it's clear that ways of transferring money — from using a debit card for instant transfers to leveraging payment app capabilities like Google Pay and Apple Pay — aren't just evolving, they're being redefined for a new era of global connectivity and digital empowerment, making money transfer apps an indispensable tool in our daily lives.
Navigating International Money Transfers: Considerations
Additionally, the rise of mobile apps, from money transfer services like Cash App to full banking apps, has democratized access to financial services. These platforms offer user-friendly interfaces that simplify the money transfer process, whether sending money abroad through international transfers or managing domestic transfers between checking and savings accounts within the same bank. This broadens financial inclusion, letting even those with a basic savings account or checking account participate easily in bank transfers and person-to-person payments.
It's equally important to have a solid understanding of the regulatory framework surrounding international money transfers. This includes being aware of anti-money laundering (AML) laws and the various transfer limits imposed by different countries. These regulations are designed to prevent financial crimes and ensure the security of cross-border transactions. Following these laws not only helps avoid legal complications, but also ensures your transactions process without unnecessary delays.
In addition to choosing the right service and understanding regulations, it's also helpful to be aware of the exchange rates offered by different services. Exchange rates can significantly affect the final amount received on the other end, especially for large transactions. It's also crucial to consider delivery times, especially if the transfer is time-sensitive. While some services can transfer funds almost instantly, others may take several business days. This can be particularly important in emergency situations or when making payments with strict deadlines.
Exploring Different Money Transfer Options: Wire, ACH, and Beyond
Digital advances have also introduced a new level of security and transparency to money transfers. With modern encryption and authentication technologies, including features like fraud detection, financial transactions — whether internal transfers, external transfers, or even online payments for online purchases — are safer than ever.
Money transfer apps have become a safe haven for personal finances, offering real-time transaction tracking and ensuring that transferring money — from a linked bank account via Automated Clearing House (ACH) transfers or direct deposit — stays secure and straightforward. ACH transfers stand out for domestic efficiency and cost-effectiveness, ideal for regular payments like salaries and bills. Additionally, traditional methods like checks, cash deposits, and money orders retain their usefulness for specific scenarios, offering tangible options in a predominantly digital world.
The Rise of Person-to-Person (P2P) Money Transfer Apps
P2P transfer apps have fundamentally transformed how we exchange money, making transactions as simple as sending a message. These apps let users send funds directly to others, using just an email address or phone number, eliminating the need for intermediaries. Among the many options available, several apps have gained prominence, each standing out for its distinctive features.
For example, some apps are celebrated for their integration with social networks, enhancing the social aspect of money transfers. Others prioritize security, offering advanced encryption and authentication methods to protect transactions. There are also apps designed to facilitate cross-border payments by simplifying the process of sending money internationally, offering competitive exchange rates and low fees. This diversity ensures there's a P2P transfer app suited to practically every need and preference, reflecting the dynamic, user-centered evolution of financial technology.
Decoding the Costs: Fees in Money Transfers
The rise of mobile apps, from money transfer services like Cash App to full banking apps, has democratized access to financial services. These platforms offer user-friendly interfaces that simplify the money transfer process, whether sending money abroad through international transfers or managing domestic transfers between checking and savings accounts within the same bank. This broadens financial inclusion, letting even those with a basic savings account or checking account participate easily in bank transfers and person-to-person payments.
Understanding the fees associated with money transfers is pivotal for managing your finances effectively and avoiding unexpected costs. The fee landscape for transfers can vary significantly, spanning service charges, transaction fees, and currency conversion fees, among others. Transparency around these fees is crucial — so it's essential to choose services that offer clear, straightforward information about all the costs involved.
Service charges and transaction fees are often the most visible costs associated with transferring money. These can vary widely depending on the provider and transfer method chosen. For example, traditional bank transfers might carry higher fees compared to online platforms or mobile apps. Currency conversion fees also play a significant role, especially for international transfers, where money needs to be exchanged from one currency to another. Some services build their profit into the exchange rate offered, making it less favorable than the market rate. This practice underscores the importance of scrutinizing the exchange rates provided, not just the explicit fees.
This approach not only helps you make informed decisions, but also helps avoid hidden charges that can add up. To minimize these costs, adopting strategies like selecting the transfer method best suited to your needs — considering factors like speed, destination, and amount — and diligently comparing providers to find the best rates and lowest fees can lead to significant savings. By prioritizing transparency and using cost-minimizing strategies, users can navigate the complexities of money transfers more confidently and economically.
Send abroad with peace of mind with your Común account¹
Open your account in 3 minutes!
Conclusion
In conclusion, the shift from traditional methods to digital innovations in money transfers represents a significant advancement in financial management. Digital platforms and money transfer apps have revolutionized how we send money, providing unprecedented convenience, speed, and security. From seamless bank account transfers to the global reach of international money transfers, these digital solutions offer a full range of services that meet our diverse financial needs.
By emphasizing transparency, these platforms minimize hidden fees, making it easier than ever to manage our savings and checking accounts. Additionally, innovations like instant transfers and robust fraud detection technology have made money transfer apps a reliable option for consumers. As we continue embracing these digital advances, the essence of mastering money transfers lies in leveraging technology to enhance our personal finance capabilities, ensuring we can navigate the complexities of modern financial transactions with confidence and cost-effectively.
How have money transfers changed over time?
From checks, money orders, and bank transfers that took days, to mobile apps that process payments and remittances in minutes.
What advantages do digital transfers have over traditional methods?
Greater speed, real-time tracking, and the ability to send money without leaving home. With Común, you can send a remittance from the app anytime.
Are traditional methods still useful?
Yes, checks and cash are still relevant in certain cases, such as when the recipient doesn't have a digital bank account.
Frequently asked questions
Why are digital transfers faster than traditional ones?
Because they use real-time processing networks, instead of the multi-day cycles of traditional banking methods.
Do I need to visit a branch to send money with Común?
No, the entire process happens through the app, with no need to visit any physical location.
Are traditional methods like checks still valid?
Yes, they're still useful in certain cases, though digital apps tend to be faster and more convenient.
How fast does a remittance sent through Común arrive?
Most arrive within minutes, depending on the country and delivery method.
Can I track my transfer in real time?
Yes, the app shows you your transfer's status while it's being processed.
Is sending money digitally safer than by check?
Both methods have different protections; digital apps usually offer additional verification and encryption.
Thousands of immigrants are already achieving more with their money. You can too.
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.
Comun is a fintech company and not a bank or licensed money transmitter.
* Results may vary. For a complete list of eligible IDs and application requirements, follow this link.
^ No minimums, no maintenance fees. ATM or transfer fees may apply. See app for fee details.
‡ 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.
** 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.
† 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.
