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
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.
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 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.
Instant payments
Transferencias de Dinero en Tiempo Real: Cómo Funcionan las Transferencias Instantáneas
8 min de lectura
¿Qué es la Red de Pagos en Tiempo Real (RTP)?
La red de Pagos en Tiempo Real (RTP) es una infraestructura financiera avanzada diseñada para facilitar las transferencias de dinero instantáneas en tiempo real. Introducida por The Clearing House en 2017, la red RTP permite la transferencia inmediata de fondos entre instituciones financieras participantes. Este sistema opera las 24 horas del día, los 365 días del año, lo que garantiza que las transacciones puedan realizarse en cualquier momento, incluidos fines de semana y días festivos.
Las características clave de la red RTP incluyen:
- Disponibilidad Inmediata de Fondos: Los fondos están disponibles para el destinatario en segundos después de iniciar la transacción.
- Comunicación Mejorada: El sistema RTP admite mensajería detallada, lo que permite a los remitentes y destinatarios intercambiar información sobre el pago.
- Mayor Seguridad: Las medidas avanzadas de cifrado y autenticación ayudan a proteger las transacciones contra fraudes.
Características Clave de la Red RTP
- Velocidad: Las transacciones se completan en segundos, proporcionando disponibilidad inmediata de fondos al destinatario.
- Seguridad: La red RTP emplea protocolos avanzados de cifrado y autenticación para garantizar la seguridad de las transacciones.
- Transparencia: Las actualizaciones y confirmaciones en tiempo real permiten que ambas partes sigan el estado de sus pagos al instante.
- Interoperabilidad: La red RTP está diseñada para funcionar sin problemas con varias instituciones financieras, lo que permite una amplia compatibilidad y adopción.
La red RTP está diseñada para admitir una variedad de tipos de pago, incluidos los pagos de persona a persona (P2P), de empresa a empresa (B2B) y de empresa a consumidor (B2C), lo que la convierte en una herramienta versátil para las operaciones financieras modernas.
¿Cómo Funcionan los Pagos en Tiempo Real?
Los pagos en tiempo real revolucionan la experiencia bancaria tradicional al permitir transferencias de dinero instantáneas. Esta eficiencia es posible gracias a la tecnología avanzada y los protocolos de comunicación seguros. A continuación, se presenta un análisis detallado de cómo funcionan los pagos en tiempo real.
El Proceso de los Pagos en Tiempo Real
La mecánica de los pagos en tiempo real implica varios pasos clave, que garantizan tanto la velocidad como la seguridad:
Iniciación del Pago
- El remitente inicia un servicio de pago a través de la plataforma en línea de su banco o una aplicación móvil.
- Se ingresan detalles esenciales como la información de la cuenta del destinatario, el monto y el propósito del pago.
Validación y Autenticación
- El banco del remitente valida los detalles del pago y autentica la identidad del remitente.
- La verificación incluye comprobar que haya fondos suficientes en la cuenta del remitente para cubrir la transacción.
Transmisión del Pago
- Una vez validado, el pago se transmite a través de la red RTP.
- La red RTP facilita el intercambio de datos en tiempo real entre los bancos del remitente y del destinatario.
Procesamiento del Banco Receptor
- El banco receptor recibe las instrucciones de pago y verifica su autenticidad.
- Luego, el banco receptor acredita la cuenta del destinatario con el monto especificado.
Confirmación en Tiempo Real
- Tanto el remitente como el destinatario reciben notificaciones en tiempo real que confirman la transacción exitosa.
- Esta transparencia asegura que ambas partes estén al tanto del estado del pago de inmediato.
Plataforma digital financiera diseñada para tu vida en USA
Abre tu cuenta corriente¹ en 3 minutos con la ID de tu país²
Infraestructura Técnica Detrás de los Pagos en Tiempo Real
El funcionamiento fluido de los pagos en tiempo real depende de una infraestructura técnica robusta. Los componentes clave incluyen:
- Pasarelas de Pago: Facilitan la transferencia de datos de pago entre los bancos y la red RTP.
- APIs (Interfaces de Programación de Aplicaciones): Permiten que los bancos integren sus sistemas con la red RTP, asegurando una comunicación y procesamiento de transacciones sin problemas.
- Protocolos de Cifrado: Protegen los datos de la transacción durante la transmisión, evitando el acceso no autorizado.
- Sistemas de Detección de Fraude: Algoritmos avanzados y modelos de aprendizaje automático monitorean las transacciones en tiempo real para detectar y prevenir actividades fraudulentas.
Medidas de Seguridad en los Pagos en Tiempo Real
Garantizar la seguridad de los pagos en tiempo real es fundamental. Se implementan varias capas de seguridad para proteger las transacciones:
- Autenticación Multifactor (MFA): Se requiere que los usuarios verifiquen su identidad mediante varios métodos de autenticación, como contraseñas, datos biométricos o códigos de un solo uso.
- Cifrado: Todos los datos de las transacciones se cifran durante la transmisión para evitar la interceptación y el acceso no autorizado.
- Tokenización: La información sensible, como los números de cuenta, se reemplaza con tokens únicos que solo pueden ser interpretados por partes autorizadas.
- Monitoreo Continuo: Las transacciones se monitorean continuamente en tiempo real para detectar cualquier patrón inusual que pueda indicar actividad fraudulenta.
Ejemplos de Casos de Uso de Pagos en Tiempo Real
Los pagos en tiempo real se utilizan en diversos escenarios, mejorando la eficiencia de las transacciones financieras en diferentes sectores:
- Transferencias de Persona a Persona (P2P): Amigos y familiares pueden enviarse dinero al instante, independientemente del banco que utilicen.
- Pagos de Empresa a Empresa (B2B): Las empresas pueden pagar a proveedores y socios de inmediato, mejorando la gestión del flujo de caja y las operaciones comerciales.
- Pagos de Empresa a Consumidor (B2C): Las empresas pueden pagar a empleados, contratistas o proveedores de servicios al instante, asegurando una compensación oportuna.
- Transacciones de Comercio Electrónico: Los minoristas en línea pueden recibir pagos al instante, lo que permite un procesamiento y envío de pedidos más rápido.
Ventajas de los Pagos en Tiempo Real
Los beneficios de los pagos en tiempo real son multifacéticos y ofrecen ventajas significativas sobre los métodos de pago tradicionales:
- Velocidad: Las transacciones instantáneas eliminan los períodos de espera para que los fondos estén disponibles.
- Conveniencia: Las transacciones se pueden realizar en cualquier momento, desde cualquier lugar, sin las restricciones de los horarios bancarios.
- Eficiencia: Simplifica las operaciones financieras tanto para individuos como para empresas, reduciendo el tiempo y el esfuerzo necesarios para procesar pagos.
- Transparencia: Las notificaciones y confirmaciones inmediatas mantienen a todas las partes informadas en tiempo real.
Los pagos en tiempo real representan un avance significativo en la industria financiera, ofreciendo una forma fluida, segura y eficiente de transferir fondos. A medida que la adopción de los sistemas de pago en tiempo real continúa creciendo, los beneficios serán cada vez más generalizados, transformando la forma en que manejamos las transacciones financieras.
RTP vs. Otros Tipos de Pago
Los pagos en tiempo real (RTP) ofrecen una ventaja distintiva sobre los métodos de pago tradicionales al proporcionar un procesamiento de transacciones inmediato y disponibilidad de fondos. Para comprender el alcance completo de los beneficios de los RTP, es útil compararlos con otros tipos de pago comunes: transferencias de la Cámara de Compensación Automatizada (ACH) y Pagos Inmediatos.
RTP vs. ACH
Las transferencias de la Cámara de Compensación Automatizada (ACH) han sido un pilar en las transacciones financieras durante décadas. Sin embargo, los RTP ofrecen varias mejoras que los convierten en una opción superior en muchos escenarios. Aquí hay una comparación:
- Velocidad:
- RTP: Las transacciones se procesan al instante, con fondos disponibles para el destinatario en segundos.
- ACH: Las transacciones generalmente tardan de uno a tres días hábiles en liquidarse, ya que se procesan en lotes.
- Disponibilidad:
- RTP: Opera las 24 horas del día, los 365 días del año, lo que permite realizar transacciones en cualquier momento, incluidos fines de semana y días festivos.
- ACH: Limitado a días y horas hábiles, sin procesamiento los fines de semana ni días festivos.
- Costo:
- RTP: Aunque los costos pueden variar, las transacciones RTP suelen tener tarifas competitivas, que pueden ser más bajas que las de los servicios ACH acelerados.
- ACH: Generalmente son de menor costo para transacciones estándar, pero las transferencias ACH aceleradas pueden incurrir en tarifas más altas.
- Transparencia:
- RTP: Proporciona confirmaciones de transacciones en tiempo real y capacidades de mensajería detalladas, mejorando la transparencia.
- ACH: Las notificaciones suelen retrasarse, y los mensajes detallados de transacciones no son tan sólidos.
- Casos de Uso:
- RTP: Ideal para pagos urgentes, transferencias entre personas (P2P) y transacciones comerciales que requieren disponibilidad inmediata de fondos.
- ACH: Adecuado para nóminas regulares, pagos de facturas y transacciones en masa donde la disponibilidad inmediata no es crítica.
RTP vs. Pagos Inmediatos
Los pagos inmediatos, como los facilitados por redes de tarjetas de crédito o ciertos servicios de pago digital, también ofrecen tiempos de procesamiento rápidos. Así es como se comparan con RTP:
- Tiempo de Procesamiento:
- RTP: Las transacciones se liquidan al instante, proporcionando disponibilidad inmediata de fondos.
- Pagos Inmediatos: A menudo se procesan en segundos o minutos, pero los tiempos de liquidación pueden variar según el proveedor de servicios.
- Costo:
- RTP: Generalmente más rentable, especialmente para transacciones de alto valor, ya que las tarifas suelen ser más bajas en comparación con las tarifas de procesamiento de tarjetas de crédito.
- Pagos Inmediatos: Las transacciones con tarjeta de crédito pueden incurrir en tarifas más altas debido a los cargos de procesamiento y tarifas de intercambio.
- Seguridad:
- RTP: Emplea cifrado avanzado, autenticación multifactor y monitoreo continuo para la detección de fraudes.
- Pagos Inmediatos: Las medidas de seguridad varían según el proveedor, pero generalmente incluyen cifrado y monitoreo de fraudes.
- Uso:
- RTP: Se utiliza para una amplia gama de transacciones, incluidas las transferencias P2P, pagos B2B y B2C.
- Pagos Inmediatos: Comúnmente utilizados para transacciones de consumo, compras en línea y pagos de pequeñas empresas.
- Disponibilidad:
- RTP: Siempre disponible, independientemente de la hora o el día.
- Pagos Inmediatos: La disponibilidad depende del proveedor de servicios, pero muchos ofrecen procesamiento casi instantáneo.
Al comprender estas comparaciones, queda claro que los RTP aportan un nivel de eficiencia, conveniencia y seguridad que los métodos de pago tradicionales no pueden igualar. Como resultado, los RTP están ganando popularidad tanto para transacciones financieras personales como comerciales.
Aprende mas sobre los diferentes tipos de transferencias bancarias
Aplicaciones de Transferencia Instantánea
Además de los canales bancarios tradicionales, las aplicaciones de transferencia instantánea han surgido como herramientas populares para facilitar las transferencias de dinero en tiempo real. Estas aplicaciones aprovechan la red de Pagos en Tiempo Real (RTP) y otras tecnologías de pago en tiempo real para proporcionar a los usuarios formas rápidas y convenientes de enviar y recibir fondos. Exploremos algunas de las aplicaciones de transferencia instantánea más utilizadas y cómo funcionan.
Aplicaciones de Transferencia Instantánea Populares
- Venmo: Una aplicación ampliamente utilizada que permite a los usuarios enviar y recibir dinero con amigos y familiares, con una interfaz similar a las redes sociales para mayor conveniencia.
- Zelle: Integrada con los principales bancos, Zelle ofrece transferencias directas de banco a banco, lo que la hace conveniente para los usuarios con cuentas en instituciones financieras participantes.
- Común App: Común es una recién llegada al mercado de aplicaciones de transferencia instantánea, ganando atención por su interfaz fácil de usar y su enfoque en servicios financieros impulsados por la comunidad inmigrante. Con Común, los usuarios pueden enviar dinero al instante a amigos, familiares y negocios, mientras acceden a una gama de funciones diseñadas para empoderar financieramente a las comunidades.
Estas aplicaciones han hecho que las transferencias instantáneas sean accesibles a un público más amplio, simplificando el proceso de enviar y recibir dinero.
Conclusión
Las transferencias de dinero en tiempo real, facilitadas por la red RTP y aplicaciones de transferencia instantánea como Venmo, Zelle y Común, ofrecen una velocidad, conveniencia y seguridad incomparables en las transacciones financieras. Con la disponibilidad inmediata de fondos, operación las 24 horas del día y interfaces fáciles de usar, estas tecnologías están transformando la forma en que gestionamos nuestras finanzas. Adoptar las transferencias en tiempo real abre nuevas posibilidades para interacciones financieras eficientes e inclusivas, empoderando a individuos y empresas en todo el mundo.
Living in the United States
Step by step: how to file taxes for the first time as an immigrant in the U.S.
8 min de lectura
Basic requirements to file taxes for the first time in the United States
Although getting a job in the United States brings a series of benefits for the quality of life of immigrants and their families, it also means committing to fulfilling the obligations required by the country's laws.
Filing a tax return is one of the processes everyone who has earned income must complete. This is done by submitting a report of annual income to the Internal Revenue Service (IRS).
Filing a tax return is particularly important for everyone, as it opens the door to access financial services such as mortgage and personal loans, which in turn help build a financial record especially for immigrants.
Filing taxes is a stressful and often confusing process for most people, especially when it involves understanding the tax institutions of another country.
Below, we show you a step-by-step guide to help you fulfill your tax obligations in the U.S. and access the benefits that come with it, such as receiving refunds and building a financial record in the country.
What documents do you need to file your taxes?
The first thing you should know to file your tax return in the U.S. is the documentation required by the IRS to process your information.
Make sure you have the following documents:
- Tax Identification Number: if you do not have a Social Security Number (SSN), you must apply for an Individual Taxpayer Identification Number (ITIN).
- Qualifying official identification from your home country: valid passport, driver’s license, or any official document that verifies your identity.
- Proof of income: W-2 forms if you are a salaried employee and your employer withholds taxes, and Form 1099 if you are self-employed.
- Proof of address in the United States: utility bill or rental agreement.
- Financial information: checking account and routing number to receive your refund through direct deposit, if any.
Tax preparation: step by step for your first filing
It is important to stay alert during tax season and prepare in advance to meet the deadlines established by law.
Follow these steps to ease the stress of tax obligations.
Step 1. Gather all your documents
The first step is to gather all the necessary documents to file your annual tax return.
- Form W-2: this document details your salary and the amount of taxes already withheld; request it directly from your employer.
- Form 1099: used by people who work independently.
- Benefit or assistance letters: if you receive any government benefit or tax credit, the IRS sends letters to include in your tax return.
Step 2. Choose how to file
Once you have your documentation in order, you must decide how you will file your return: on your own or with professional help.
- Self-prepared tax filing: you can use various IRS-approved tax preparation software such as IRS Free File, TaxSlayer, or TurboTax, which simplify the process by automatically calculating your taxes.
- With the help of a tax preparer, if you have multiple income sources or are self-employed, the best option is to hire an authorized preparer to ensure everything is filed correctly. You can also go to a community organization that offers low-cost assistance.
Step 3. File your tax return in the United States on time
Keep in mind that the deadline to file your tax return is usually April 15 each year. It is essential to submit your tax return within the deadline to avoid penalties and delays in receiving your refund.
How much does it cost to file taxes, and which option is best for you?
As mentioned before, there are different ways to file your tax return, which vary in cost and level of support offered. The best option depends on several factors, such as your income level and how familiar you are with tax topics.
Below is a comparative table of the different ways to file taxes in the United States.
Method
Approximate cost
Level of support
Doing it yourself with IRS-approved software
Free or up to $25
Low. Although the platform guides you step by step, you must enter all the information yourself.
With the support of community organizations
Free or up to $50
Medium. You receive assistance from certified volunteers.
With private preparers or accountants
$150 to $500, depending on complexity
High. The preparer does all the work and answers your questions.
Practical tips to avoid mistakes in your first tax filing
If this is your first time filing taxes in the United States, it may seem like a very complex task. Keep these tips in mind to ease the stress associated with the process.
- Don’t wait until the last minute to file: keep the deadline in mind and prepare several weeks in advance.
- Verify that all forms match your income: remember that the required form depends on your type of work. Make sure your income matches what you report.
- Keep copies of all submitted documents: create both a physical and digital file to have every record handy.
- Check official IRS resources for immigrants: always access official websites ending in .gov.
- Avoid relying on third parties that promise higher refunds: remember that tax preparers or community organizations must be certified by the IRS to ensure your filing is done properly and your personal data remains secure.
Común, your financial support after filing your taxes
We’ve shown that the tax filing process is not as complicated as it seems. Now you know which steps to take and which method to use based on your situation.
Just as filing taxes helps you organize your financial situation, Común helps you manage your day-to-day finances.
Discover all the benefits of Común!
- Open a checking account with a qualifying official identification from your home country.
- Mobile app available in Spanish and English, specially designed for the immigrant community.
- Ability to receive your tax refund directly into your account.
- Debit card for daily expenses and international money transfers to Latin America.
Discover Común, the option dedicated to serving the needs of immigrant communities in the United States, with support available in Spanish.
Frequently Asked Questions (FAQ)
If you still have questions, check this section.
What happens if I don’t file my taxes in the U.S.?
Not filing your tax return may result in IRS penalties, accumulated interest, and withheld future refunds.
Can I file taxes without a Social Security Number?
If you do not have a Social Security Number, you can apply for an ITIN.
Is it better to file my taxes myself or with a tax preparer?
It depends on your situation: if you have only one source of income, you can use software, but if your income is higher or more complex, the best option is to consult a professional.
Instant payments
Direct deposit vs wire transfer: comparison guide for U.S. immigrants
8 min de lectura
Direct deposit vs wire transfer: comparison guide for U.S. immigrants
These payment methods are both available in the U.S. but they are often used for different purposes. Direct deposit is commonly used for paychecks, tax refunds, and government benefits, while wire transfers are more often used for urgent or high-value transfers between financial institutions.
Understanding the difference between direct deposit and wire transfers can help you avoid unnecessary fees, choose the right payment method for your situation, and manage your money more confidently.
What's the difference between direct deposit and wire transfer?
The biggest difference is the purpose they serve. Direct deposit is commonly used for recurring payments such as salaries, benefits, and tax refunds. Wire transfers are commonly used to move money quickly between financial institutions, particularly for large or time-sensitive transactions.
| Feature | Direct deposit | Wire transfer |
|---|---|---|
| Common use | Paychecks, benefits, tax refunds | Large or urgent transfers |
| Network used | ACH network | Wire transfer network |
| Speed | Typically 1–3 business days | Often same day or next business day |
| Typical cost | Often no fee to receive | Fees may apply |
| International transfers | Limited | Commonly used |
| Recurring payments | Yes | Less common |
| Setup required | Routing + account number | Bank details + recipient information |
How direct deposit works
Direct deposit is one of the most common payment methods in the United States, particularly for employees receiving wages from an employer. Instead of issuing a paper check, an employer sends the payment electronically to the employee's bank account through the ACH network.
To set up direct deposit you need to provide your employer: your bank's routing number and your personal account number.
How wire transfer works
A wire transfer is an electronic transfer of funds between financial institutions through secure financial networks like Fedwire or SWIFT. Unlike direct deposit, wire transfers are better suited for large one-time payments, urgent payments, real estate transactions, or international transfers.
When to use each one
Use direct deposit for:
- Receiving your paycheck
- IRS tax refunds
- Social security or unemployment benefits
- Recurring business payments
Use wire transfer for:
- Real estate payments (down payment, closing)
- Urgent international transfers
- High-value business payments
- When the recipient specifically requires a wire transfer
How to set up direct deposit with Común
With your Común account, you can set up direct deposit by providing your Común routing number and account number to your employer. Your Común account has unique routing and account numbers available in the app. Visit comun.app to learn more.
FAQ
Is direct deposit faster than wire transfer?
Not necessarily. Domestic wire transfers can be faster (same day), while direct deposits usually take 1-3 business days. However, many accounts offer early access to direct deposits up to 2 days early.
How much does it cost to set up direct deposit?
Setting up direct deposit is generally no fee. Employers use the ACH network to send payroll electronically at no charge to the employee.
Común is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank, Member FDIC.
Instant payments
What is Venmo and how does it work? 2026 Guide
8 min de lectura
What is Venmo and how does it work? 2026 guide to understanding how Venmo works in the United States
Venmo is a digital payment app in the United States that allows people to send and receive money quickly from their phones. The platform works as a peer-to-peer (P2P) payment service, meaning users can transfer money to friends, family members, or other contacts using a linked bank account, debit card, or available balance within the app.
Over the last several years, Venmo has become one of the most widely recognized payment apps for splitting bills, paying rent, reimbursing friends, and handling everyday payments in the U.S.
What Is Venmo?
Venmo is a digital payment app for quick transfers between people who know each other. It is commonly used to split a restaurant bill, to pay rent between roommates or even for sharing costs for trips or events. Venmo operates within the United States and requires compatible payment methods such as U.S. bank accounts or debit cards.
Verified users can send up to $60,000 per week. Transfer limits vary based on account verification status and may change over time.
How does Venmo work?
To start using Venmo, users first need to download the mobile app on iPhone or Android and create an account using an email address or U.S. phone number. After setting up the account, users can connect a payment method such as: a U.S. bank account, a debit card, a credit card, or an existing Venmo balance.
Once the account is ready, users can search for another person on Venmo using their name, username, phone number, or QR code. From there, they can either send money or request a payment.
Venmo fees — Cost table
| Service | Possible fee |
|---|---|
| Standard bank transfer | No additional transfer fee |
| Instant transfer | 1.75% of the transfer amount |
| Payment funded by credit card | 3% fee may apply |
| Out-of-network ATM withdrawals | Additional fees may apply |
Venmo fees can change over time. Always review the latest information directly on Venmo's official website.
Is Venmo available in Spanish?
Venmo is not available in Spanish; the app operates entirely in English. However, you can make the app display in Spanish by changing your smartphone's system language. Venmo does not offer customer service in Spanish.
Can I use Venmo as an immigrant?
Venmo requires a U.S. bank account or debit card to work. If you do not have access to traditional banking services, it may be difficult to get started. Also, Venmo does not allow international remittances, so if you need to send money to family in Latin America, you will need a different service.
Venmo vs. Común — Direct comparison
| Feature | Venmo | Común (ComunPay) |
|---|---|---|
| Main function | P2P payments in the U.S. | P2P payments in the US, remittances and deposit accounts |
| Spanish-language support | No (English only) | Yes, fully bilingual app + 24/7 Spanish support |
| Ways to send money | Username, phone, email, or QR code | Phone number, email, @username, QR code |
| QR code payments | Yes | Yes |
| Remittances to Latin America | No | Yes |
| Part of a broader financial app | Yes, debit card and direct deposit | Yes, checking account, Visa debit card and remittance services |
When does it make sense to use Venmo?
Venmo may be useful if: your friends and family already use Venmo, you mainly need fast domestic payments in the U.S., and you have a linked U.S. bank account.
FAQ
Is Venmo available in Spanish?
No. Venmo operates entirely in English without Spanish customer support.
Can I send money to Mexico with Venmo?
No. Venmo only supports domestic transfers within the U.S.
How much does Venmo charge?
Standard bank transfers have no additional fee. Instant transfers carry a 1.75% fee. Credit card payments may have a 3% fee.
Is Venmo safe?
Venmo uses encryption and identity verification. However, like any P2P app, transactions are difficult to reverse once completed.
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.
International Money Transfers
What are remittances?
8 min de lectura
Living and working abroad? Remittances might be for you if you want to send money to family members, friends, or other beneficiaries in another country.
Remittance is money transfers from one person to another, usually across borders. They are most commonly sent by immigrants who send a portion of their income to support their families back home. However, remittances can also be personal gifts, financial support, or payments between relatives or friends who maintain social or economic ties despite the distance.
Do you know the difference between a remittance and a bank transfer payment?
Remittances can be money transfers, however what is commonly understood as remittances are voluntary person-to-person transfers, usually between family members. For example: a worker in Texas sending money to their parents in Mexico, a nurse in Florida sending money to her siblings in Honduras, or a student helping their grandparents in Guatemala. Bank transfers on the other hand, can include payments between companies, international trade payments, foreign direct investment, loans between corporations, or government aid.
In summary, remittances are personal, cross-border, person-to-person transfers.
How can you send remittances from the United States to Latin American countries?
Today there are more options than ever to send money to Latin America from the U.S. The process is usually very simple:
#1 Choose a remittance provider
Your remittance service provider can be a financial mobile application, a traditional bank like Wells Fargo, a specialized money transfer service like Western Union or MoneyGram, or a fintech company like Remitly.
#2 Select the destination country and delivery method
Each company offers different delivery options depending on their services and local partnerships. Delivery options vary in cost depending on the provider and the urgency.
#3 Enter the amount and confirm the exchange rate and fee
The amount received by the recipient varies by the exchange rate used by the provider and the service fee they charge. Some companies might charge no fees, but their business model relies on the exchange rate markup.
#4 Pay for the remittance
With so many options available, remittances can be paid with various methods including:
- Bank account (ACH).
- Debit card.
- Credit card (often the most expensive).
- Cash
#5 The recipient receives the money
It can take minutes to days for the recipient to receive the funds, depending on how the funds are received or by the type of remittance provider used to send the remittance.
How much does it cost to send remittances from the United States?
The total cost depends on two main factors:
1. Service fees
This is the fee the provider charges to send the remittance. It can range from $0 to over $20 USD per transaction depending on the provider and payment method used.
- Bank account: typically the cheapest.
- Debit card: mid-range cost.
- Credit card: most expensive (fees + potential interest)
2. Exchange rate costs
Some companies have different exchange rates, making the remittance more expensive even if the service fee is advertised as “$0.” Sometimes the fee for the service provider is included within the added margins in exchange rates.
3. Other possible additional costs
These may include cash pickup fees, limits for high transaction amounts, or fees charged by participating banks. It is important to understand the fees in remittance costs to be able to manage your funds in a way that makes sense to you.
What should you consider before sending money abroad from the United States?
To choose the best option, you can always consider:
- Total costs (fee + exchange rate). Sometimes comparing only the fixed fee is not enough to fully understand the cost of a remittance or transfer.
- Delivery time. If the recipient needs the money the same day, it could be best to choose an quick service.
- Delivery method. Cash pickup can be useful if the recipient doesn’t have a bank account. Other options include bank deposit or digital wallets, which can be practical and low-cost.
- Convenience for the sender. If you send money frequently, it is recommended to evaluate apps that allow saved recipients, automatic payments, recurring transfers, or exchange-rate alerts or options that adjust and serve your needs.
- Limits and requirements. Not all money transfer service providers are the same. Some services require government-issued identification to provide their services, while others require a U.S. bank account and, in some cases, proof of identity (some providers accept foreign passports as proof of identity to send remittances if the sender can prove residency in the United States) for large transfers.
What Companies Offer Remittance Services from the United States?
In the U.S., there are several types of companies offering remittance services:
Traditional money transfer companies, for example: Western Union, MoneyGram, and Ria Money Transfer. These companies have physical branches in many locations. Fees could be higher than alternatives and the exchange rates can be less competitive.
Traditional banks: However, not all banks provide this service, but institutions like Bank of America and Wells Fargo allow international transfers through online banking or in-branch. However, it is important to consider that the fees can reach up to $60 USD depending on the bank, and transfers can take up to 5 business days. For this option, a bank account with the institution is needed or cash transfers are done directly at a branch.
Digital first companies (apps): Examples include Remitly, Wise, WorldRemit, and Xoom (from PayPal). These companies can offer more competitive pricing and faster transfers. These options are presented as an alternative to traditional banks or Western Union. Comun is one of these platforms, combining a fintech experience with extra benefits like a digital account and an easy-to-use app available in Spanish.
Convenience stores: For example, Walmart offers in-person remittance services. For example companies like Comun can also offer services like cash funding in retails or ATM locations. With a Comun open account you can deposit cash at one of over 90,000 retail locations (Walmart, 7-Eleven, Walgreens, and more) and then complete the remittances conveniently from your app.
What do I need to send remittances from the United States to Latin American countries?
Requirements vary by provider and they depend on:
-How the remittance is sent, and
-How the remittance is received.
For example, if sending money for cash pickup, the most important information is the recipient’s full legal name as it appears on their official ID, since they’ll potentially need to present it to pick up the money.
For a bank-to-bank international transfer, the essential information includes the bank details for the receiving account.
Traditional banks and companies like Western Union generally require:
- Recipient’s full name.
- Recipient’s account number.
- SWIFT code.
- Receiving country.
- Amount and currency
How can you send remittances using Comun?
Sending a remittance with Comun is very simple. You have two options at the palm of your hand, you can send it through the app or via WhatsApp. Here’s a detailed step by step on how to do it:
Through the Comun App
- Open your Comun app.
- Select “Transfer.”
- Select “International.”
- Under “How do you want to send your money?”, choose “Through the app.”
- You’ll see the current exchange rate.
- Select an existing recipient or add a new one.
*To add a recipient, you’ll need: full name as on their ID, phone number, and—if sending a bank transfer—their bank details.
- Confirm the recipient’s information.
- Choose the transfer method (bank deposit or cash pickup; options vary by country).
- Enter the sender’s ID type and ID number.
- Confirm transfer details.
- Enter the amount (the calculator shows the amount the recipient will receive in local currency and the transfer fee).
- Confirm the transaction.
And that’s it—your remittance is sent!
Through Comun’s WhatsApp
- Start from our website (by selecting “Send Money”), which will show the WhatsApp option — or.
- From the app, select “Transfer.”
- Select “International.”
- Choose “Via WhatsApp.”
- Follow the conversation flow.
- Choose “Send money.”
- Confirm the country.
- Enter the amount.
- You’ll receive a confirmation message showing the amount to be received in local currency.
- Choose the delivery method.
- Provide the recipient’s details: full name, ID type, ID number, and bank account (if applicable).
- Confirm your remittance.
- Verify your identity through the verification steps.
And you’re done—your remittance is sent!
Best Practices for Sending Remittances
To make sure your get the best out of your hard-earned money, it is recommended to keep some good practices in mind:
1. Verify the exchange-rate margin
Ideally, choose a provider that uses an exchange rate as close as possible to the real market rate as this impacts the actual amount your recipient will receive. Understanding transaction costs can help make better financial decisions for your needs.
2. Look for transparent, fixed fees
Comparing fees can be confusing because many services use variable pricing based on multiple factors. Ideally it is recommended to choose a provider that offers fixed fees and transparent pricing.
3. Consider timing and holidays in both countries
Keep in mind that transfers may be delayed during weekends or holidays in either country, so processing times may be slower than on regular business days.
Financial Education
Apps like Chime: Best alternatives for 2026
8 min de lectura
Apps like Chime: Best alternatives for 2026
Digital banking apps have changed how many people in the United States manage their money. Instead of visiting physical branches, people can now open accounts, receive direct deposits, send payments, and manage spending directly from their phones.
Among these apps, Chime has become one of the most recognized names in digital banking. However, for many immigrants in the United States, traditional fintech apps may not fully meet everyday financial needs. Some people may need an app that supports ITIN-based onboarding, offers easier ways to send money to Latin America, or provides customer support in both English and Spanish.
What is Chime and why look for alternatives?
Chime is a financial technology company that offers mobile-first banking services through partner banks. Its features include early direct deposit, debit cards, fee-friendly banking options, and automatic savings tools. Some users may look for alternatives because they want: international remittance options, ITIN or passport-based onboarding, bilingual customer support, or cash transfer flexibility.
Comparison of apps like Chime (2026)
| App | Sin comisión mensual | Acepta ITIN/Sin SSN | Soporte en español | Remesas internacionales | Transferencias P2P | Depósito directo anticipado |
|---|---|---|---|---|---|---|
| Chime | Sí | No | No | No | No | Sí* |
| Común | Sí* | Sí | Sí | Sí | Sí | Sí* |
| Current | Sí | No | No | No | Sí | Sí |
| Varo | Sí | Sí (ITIN) | No | No | No | Sí |
*Terms and conditions apply. Verify current requirements with each provider.
Común — The alternative designed for Latino immigrants
Común is a digital financial platform built specifically for the Latino community in the U.S. Unlike Chime and other digital banking apps, Común accepts more than 100 valid Latin American IDs to open an account, offers 24/7 customer support in Spanish, allows sending remittances to Latin America starting at $2.99, and has an app available fully in Spanish. Visit comun.app to learn more.
Varo
Varo accepts ITINs for account opening, making it more accessible for some immigrants. It offers basic banking features without monthly fees. However, it does not offer international remittances or Spanish-language support.
Current
Current offers digital banking with early direct deposit and P2P transfers. However, it does not accept ITINs for account opening and has no Spanish support or international remittances.
Which is the best Chime alternative for immigrants?
It depends on your specific needs. If you need remittances to Latin America, Spanish-language support, and the ability to open an account without an SSN, Común may be the most complete option.
FAQ
Can I open a Chime account without an SSN?
Chime generally requires an SSN to open an account. For immigrants who do not yet have an SSN, there may be better alternatives like Común.
What is the best banking app for Latino immigrants?
Común is designed specifically for Latino immigrants in the U.S. with Spanish support, account opening with Latin American IDs, and international remittances.
Común is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank, Member FDIC.
Financial Education
How to renew your ITIN: step-by-step guide
8 min de lectura
How to renew your ITIN: step-by-step guide
Your ITIN may have expired if you have not used it on a federal tax return for three consecutive tax years. To renew it, you must submit Form W-7 to the IRS, which is the same form used to apply for a new ITIN. You do not need to wait until tax season to start the renewal process, and you can submit your renewal before filing a tax return.
When does an ITIN expire?
An ITIN (Individual Taxpayer Identification Number) is a 9-digit tax processing number issued by the IRS. It is designed specifically for individuals who need to report income and file taxes in the United States but are ineligible for a Social Security Number (SSN).
An ITIN expires when it has not been used on a federal tax return for three consecutive tax years. The IRS explains that the expiration takes effect on December 31 of the third year of non-use.
An ITIN does not expire because time has passed, but because it has not been used for federal tax filing. Once expired, the number remains the same and can usually be renewed rather than replaced. An expired ITIN does not erase previous tax filings or financial records associated with it.
How do you know if your ITIN has expired?
One sign that an ITIN may have expired is not having filed a federal tax return with that number for several years. If three consecutive tax years have passed without using the ITIN, the number may no longer be active according to current IRS rules.
The IRS may also send a notice informing you that your ITIN needs to be renewed. Receiving a renewal notice does not mean there is a problem with your record. It simply means the IRS has determined that renewal is required before the number can be used again for tax filing purposes.
Tax software may also indicate that an ITIN has expired when preparing a return. If you are unsure if your ITIN has expired, checking IRS correspondence or reviewing past tax filings can also be a way to confirm status.
What happens if your ITIN expires?
An expired ITIN can delay the processing of a federal tax return. According to the IRS, certain tax credits and benefits associated with a return may not be available until the ITIN has been renewed.
An expired ITIN does not cancel previous tax filings, change your tax history, or create a new tax identity. The IRS maintains records associated with the original number even if that number has expired due to non-use.
An expired ITIN also does not automatically affect financial accounts that were opened using that number. However, an active ITIN may be required when completing future tax-related paperwork or applying for certain financial products and services.
If your ITIN has expired, the most practical step can be to start the renewal process before filing your next federal tax return. Taking action early can help avoid delays and additional paperwork during tax season.
What do you need to renew your ITIN?
To renew an ITIN, you must complete Form W-7 and mark it as a renewal application.
You also need documentation that proves identity and foreign status. The IRS lists acceptable documents in its official instructions, which include: passport, U.S. Citizenship and Immigration Services (USCIS) photo identification, visa issued by the U.S. Department of State, U.S. driver's license, foreign driver's license, foreign military identification card, national identification card (must contain name, photograph, address, date of birth, and expiration date), among others.
If your legal name has changed since your ITIN was issued, supporting documentation such as a marriage certificate or court order may be required.
How to renew your ITIN: step by step
1. Complete Form W-7
Fill out Form W-7 and indicate that you are renewing an existing ITIN. Make sure all personal details match your official documents.
2. Gather required documents
Collect identification documents that prove identity and foreign status. The IRS outlines acceptable documents in the Form W-7 instructions.
3. Attach supporting documentation
Include any additional documents required for your situation, such as name change records or prior IRS notices.
4. Submit your application
You can submit Form W-7 by mail, through an IRS-certified Acceptance Agent, or at select IRS Taxpayer Assistance Centers.
5. Wait for IRS processing
The IRS reviews the application and supporting documents before issuing confirmation. Keep copies of everything submitted for reference.
How long does ITIN renewal take?
Processing times vary throughout the year, but the IRS currently advises applicants to allow approximately seven to eleven weeks to receive notification regarding an ITIN application or renewal. Processing may take nine to eleven weeks during peak tax season or when applications are submitted from outside the United States.
Submitting a complete application can help prevent unnecessary delays. Applications that are missing required documents may take longer because the IRS must request additional information before processing can continue.
Can Común help me renew my ITIN?
Yes. Común's ITIN service helps with both new ITIN applications and ITIN renewals.
Común's ITIN service costs $199 and includes guidance throughout the renewal process. The service works with IRS-certified agents who help prepare the required paperwork, explain the requirements, and answer questions in Spanish.
The process can be completed from your phone, making it easier to organize documents and track progress without visiting multiple offices. Común also offers a money-back guarantee if the ITIN application is not approved according to the program terms.
FAQ
Do all ITINs expire?
Not all ITINs expire immediately or at the same time. An ITIN expires if it has not been used on a federal tax return for three consecutive tax years.
Can I renew my ITIN without filing taxes?
In some cases, yes. The IRS allows exceptions where Form W-7 can be submitted without a tax return depending on eligibility.
What form do I use to renew my ITIN?
You use Form W-7 for both new applications and renewals.
How long does it take to renew an ITIN in 2026?
The IRS estimates about seven weeks for processing. Processing may take approximately nine to eleven weeks during tax season or for certain international applications.
Can I still use my Común account if my ITIN expires?
An expired ITIN does not erase your financial history. If you have questions about how an expired ITIN may affect your specific account, contact Común directly for guidance.
What happens to my tax refund if my ITIN expires?
If an ITIN is expired, the IRS may delay processing a return until it is renewed. Certain tax benefits may not be available until the ITIN has been renewed, which can affect the timing of a refund.
Común is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank, Member FDIC. The Común Visa® Debit Card is issued by Community Federal Savings Bank.
Instant payments
Safe and fast ways to send money without a bank account
8 min de lectura
Did you know it is possible to send money without having a bank account? The lack of access to financial services is a problem that negatively affects the quality of life of thousands of immigrant workers in the United States.
For example, according to a recent survey, the rate of the Latino community in the United States without a bank account dropped from 15% to 10% over the last two years. However, it remains high compared to the national average of 4.5%.
While having a bank account facilitates financial transactions such as transfers, in-store payments, and online purchases, there are now alternatives that allow you to access banking services without needing an account.
Below, you will discover how to transfer money from one card to another without an app or bank account, as well as the safest and simplest methods available to you.
Sending Money Online
Not having a U.S. bank account is not an obstacle to sending money domestically or internationally, as there are methods widely used among immigrant workers who regularly send remittances and conduct other transactions using prepaid cards and cash payments.
International Money Transfer Providers
This is one of the most popular ways to send money without a bank account due to the accessibility, variety of payment methods, and broad coverage typically offered.
International money transfer providers are companies that specialize in facilitating money transfers from one country to another. The key features of these services include:
- Specialization in international money transfers, unlike traditional banks, which have certain limitations, such as high commissions, unfavorable exchange rates, extensive delivery time, and participation of intermediaries that increase costs.
- More affordable fees.
- Various sending methods.
- Multiple Money Transfers Locations
How to Send Money Without a Bank Account Through an International Transfer Platform
Comun allows you to send money to your loved ones for a modest transfer fee starting at USD 2.99 up to the applicable limits. It is very simple; just follow these steps:
1. Open your account with Comun; it will only take a few minutes!
2. Choose the most convenient delivery method for your recipient, such as cash pick up at a physical store like Oxxo, Grupo Elektra, 7 Eleven, and more.
3. You may also send money directly to a bank and have it picked up at one of its branches.
4. Track the delivery directly in your Comun mobile application.
Comun is an excellent option for our community, as it provides Spanish-language service, which is highly appreciated by the immigrant community. Open your account today and start sending money without complications.
What Information Do You Need to Send Money Without a Bank Account?
To send money without a bank account, you only need the following information about your recipient:
- Full name of the recipient, exactly as it appears on their official ID.
- Recipient’s phone number.
- If the transfer is made to a bank account, you will also need:
- Recipient’s address.
- Bank account number, depending on the receiving country.
P2P Services
P2P (peer-to-peer or person-to-person) services allow immediate money transfers between individuals without intermediaries. These options are useful for everyday needs such as paying rent, shared services, splitting transportation costs, and sending money to your relatives in the US or internationally.
How to Send Money Without a Card Using P2P Services
- Choose a reliable provider, such as Cash App or Venmo.
- Enter the recipient’s phone number in the mobile app.
- Confirm the transaction and track it.
Sending Money by Mail
Other alternatives involve sending a cashier’s check, a certified check, or a money order through the postal service.
Cashier’s Check
This type of check is issued with the bank’s funds. The customer must pay in cash or directly from their account, and the check is made payable to the recipient.
Certified Check
This check is issued using the customer’s funds. The issuer must have a bank account so that the bank can verify the availability of funds. The recipient may cash the check directly at a bank branch.
Money Order
Another way to send money without a bank account is by using a money order, which is a type of prepaid payment order. To do so, you will need to:
1. Go to a post office or authorized retailer, such as USPS or Walmart, to purchase a money order.
2. Write the beneficiary’s name in the “pay to the order of” section.
3. Write your name in the “purchaser” section.
4. Sign in the space designated for the purchaser, generally on the front of the document.
5. Keep the receipt with the serial number.
6. Pay the amount to be sent plus applicable service fee.
7. Send the money order via regular or certified mail.
8. Write the recipient’s address in the center of the envelope and the sender’s address in the upper left corner.
9. Purchase a postage stamp at the post office and attach it to the envelope.
10. Drop off the envelope at the post office.
The recipient may cash the money order at an authorized branch upon presenting valid personal identification.
The downside of this alternative is that it takes longer to arrive, as it relies on a traditional mailing method.
Sending Money With Prepaid Load
There are other options available to send money without a bank account, such as prepaid cards and mobile applications.
Reloadable Prepaid Cards
Reloadable prepaid cards function similarly to debit cards, with the main difference being that they are not linked to a bank account. They also allow you to pay for services and make online purchases.
To send money using a prepaid card, you only need to:
1. Identify an international money transfer service that supports prepaid cards, such as Western Union or MoneyGram.
2. Select your preferred provider and choose the prepaid card option on their website.
3. Enter the recipient’s information, making sure it is compatible with the selected platform.
4. Confirm the transfer and pay the amount plus the applicable service fee.
Done! The recipient will receive the money on the prepaid card as if it were a bank transfer.
Mobile Wallets/Applications
Lastly, you may opt for mobile wallets or applications that offer money transfer capabilities. Some examples include Cash App, Venmo, and Remitly, which provide access to an mobile app you can use to send and receive money.
These applications do not require a bank account and are user-friendly. Some also offer physical cards that function similarly to debit cards.
7 Essential Tips for Sending Money Without a Bank Account
1. Verify the Identity and Information of the Recipient
Ensure that the recipient’s information, such as name, account number, or phone number, is entered correctly. Any discrepancies could prevent the recipient from collecting the funds.
2. Compare Fees and Exchange Rates
Each provider has its own rates depending on the receiving country, amount, and exchange rate. Remember, with Comun you do not pay excessive fees, and you ensure your family receives more for less.
3. Know the Sending Limits
Some platforms have sending limits that should be considered before selecting a service. For instance, Western Union has a daily limit of USD 7,499, while Cash App allows up to USD 7,500 per week for verified accounts.
4. Keep All Receipts and Reference Numbers
Even though these methods are secure, it is important to keep receipts and reference numbers in case a clarification or issue arises.
5. Use Reputable and Secure Services
It is essential to ensure that you use a trusted service. Check online reviews and verify that the provider has an official website and/or physical offices.
6. Be Cautious of Scams
Unfortunately, scams are common around financial services. No legitimate institution will request passwords or verification data. Always access official websites. If in doubt, visit an authorized branch.
7. Consider Delivery Time
Most options allow you to complete transfers in minutes, but some may take several days. Consider this before choosing your preferred service.
Frequently Asked Questions
Is it safe to send money without a bank account?
Absolutely. Comun is backed by leading financial institutions to protect your funds up to the applicable limits. Additionally, you can track your transfer directly through the Comun mobile app.
How much does it cost to send money without a bank account?
Comun offers a transfer fee starting at USD 2.99, regardless of the amount you send up to the applicable limits. Your first transfer is commission-free!
How long does it take for the money to arrive?
Cash is typically available within approximately 1 hour at the selected store or bank branch.
What documents do I need to send/receive money without an account?
You need the full name of your recipient, and they must present official identification.
International Money Transfers
How long does an international money transfer take? Business days, time zones, and type of transfer
8 min de lectura
If you need to send money to your home country from the United States, it is important to consider how long an international money transfer takes. In general, the processing time for this type of operation is usually 1 to 5 business days.
However, this depends on several factors, such as the payment system, the banks involved, the currency conversion, and the holidays in between.
That is why it is important to know the different types of international money transfers available, the advantages and disadvantages of each one, and, of course, how long they take to deliver the money to its destination.
Below, we offer you a guide to answer those questions so you can send money home as quickly and safely as possible.
What is an international money transfer and how long does it usually take?
First of all, an international transfer is the sending of money to a bank entity located outside the country of the originating account. Unlike domestic transfers, international transfers involve additional banking systems, such as the SWIFT networks, which can increase costs and processing times in many cases.
There are several factors that influence the total time an international money transfer takes, but in general, it takes 1 to 5 business days.
For example, one relevant aspect that influences this is the system used, whether SWIFT or SEPA, which have different conditions and characteristics.
SWIFT Transfers
The SWIFT system is the largest network: it connects thousands of traditional banks worldwide to send money from one country to another through secure mechanisms.
Characteristics of the SWIFT system
- In general, it takes 3 to 5 days to complete money transfers.
- The involvement of intermediary banks is common, which can generate additional fees.
- It is useful for sending money in different currencies, although it implies disadvantages in time and costs.
- To use this system, check the SWIFT code of the receiving bank.
SEPA Transfer
On the other hand, the SEPA system is focused on international money transfers within the European Union.
Characteristics of the SEPA system
- International money transfers are usually completed in 1 business day.
- Fees are more affordable compared to the SWIFT system.
- This system works exclusively in the SEPA area, and for transactions in euros.
As you can see, both the SWIFT and SEPA systems are useful for making international money transfers safely. Although for those living in the United States, the latter is not recommended due to its geographic limitations.
Here is a comparison table:
| SWIFT | SEPA | |
|---|---|---|
| Time | 3 to 5 business days | 1 business day |
| Cost | Expensive, due to the involvement of intermediaries | Affordable |
| Geographic availability | Worldwide | Exclusively in Europe |
Factors that influence the time of an international money transfer
The time an international money transfer takes is not fixed. It varies according to the type of transfer and other elements involved in the operation.
Here is what you need to know to estimate how long it will take for your money to reach your loved ones.
Payment system
So far, we have presented the SWIFT system, which takes 3 to 5 business days, and SEPA, which is generally reflected the next business day.
In addition, there are ACH (Automated Clearing House) transfers, which are a more common system in the U.S., characterized by being a more economical option, although the process usually takes 2 to 3 business days.
Intermediary banks
There are cases in which the financial institutions participating in an international money transfer do not have a direct relationship with each other, so they need to involve intermediary banks. This, in addition to increasing costs, lengthens transfer times, because it makes the operation take longer than usual.
Cut-off times and business days
Another essential aspect is the cut-off time banks have for executing transactions. If you send money after this time, the operation is processed the next business day.
Also, do not forget to take into account the holidays of both the sending country and the receiving country, which also extend the waiting time.
Currency conversion and destination country
When sending money from the United States to your home country in Latin America, the bank will need to make the corresponding currency exchange and apply an exchange rate. This also usually adds time to the international money transfer process.
Security verifications and compliance controls
Banks often carry out security checks to prevent money laundering and fraud, especially when large amounts are involved.
What information do you need to make an international money transfer?
You are almost ready to start sending money abroad. But first, it is very important that you make sure you have the necessary information to process this type of transfer. Otherwise, the transfer could be rejected or take longer than usual.
Sender’s information
You will need to provide your basic personal information: full name, bank account, official address, and phone number.
Beneficiary’s information
It is also essential to provide the details of the person who will receive the money: full name, recipient’s account number, address, and country of origin.
Bank codes
- IBAN: for transfers within the European Union.
- SWIFT/BIC code: for transfers in most of the world, including the United States.
Amount and currency
Indicate the amount of the transfer and the currency in which it will be received.
Purpose or payment reference
Finally, indicate the purpose of the transfer. It may be: maintenance payment, family support, family savings, etc.
How can you speed up an international money transfer?
We know that sending money to your family and loved ones is very important, which is why it is vital that you avoid mistakes and bad practices that could delay your transfers even more.
- Verify that the beneficiary’s details are complete and correct: check that your recipient’s details are written as they appear on their official identification.
- Make the transfer before the bank’s cut-off time: remember that doing it after this time causes the transfer to be processed the next business day.
- Avoid sending money on weekends or holidays: try to send money on business days to avoid delays.
- Consider using specialized remittance services with faster processes: there are alternative services that offer better conditions than traditional banks.
Make your international money transfers quickly and safely with Común
This time, we learned that international transfers are money transfers made from one country to another, and there are several factors involved in the time they take to be completed.
Are you looking for a way to send money home without complications?
Discover Común, the digital platform that connects you with your family through a service that understands your needs.
Make your first international money transfer, forget about hidden fees, and get transparent rate so your loved ones receive more for less.
Frequently Asked Questions (FAQ)
If you still have questions, check our FAQ.
What is the average time of an international money transfer?
Approximately 1 to 5 business days.
Why do some transfers take longer than usual?
It depends on the system used, the involvement of intermediaries, the currency exchange, and other factors. That is why you should make sure to check the estimated time before sending your money, to see if it fits your timing and needs.
Can I send money on weekends?
Yes, but it will be processed the next business day in most cases.
International Money Transfers
What Are Remittances and How Do They Work from the U.S.?
8 min de lectura
Do you really know what remittances are? They are international money transfers made by people living and working abroad to family members or recipients in their home country.
For Latin American immigrants living in the United States, sending remittances is a crucial matter, as is having efficient financial services that allow them to send money to their families and friends quickly, safely, and at low cost.
According to recent sources, the flow of remittances from Mexico to the United States fell 12.4% year over year, which is attributed to recent immigration measures imposed by that country. For this reason, it is important that migrants have international money transfer services that understand their needs.
Why Do People Send Remittances?
For the families of migrant workers in the United States, remittances represent much more than a simple transfer of money, as they often become the main support for millions of people in Latin America.
These Are the Main Reasons to Send Remittances:
Household expense support (rent, utilities, food)
This category includes basic expenses such as food, rent, utility payments, and everything related to daily costs, highlighting the importance of remittances for recipient families.
Education and study tools
Includes payment of tuition, school supplies, transportation, preschool fees, and computing tools such as laptops or desktop computers.
Health and family emergencies
If any family member requires specialized medical care, remittances play a central role in covering hospitalization, medications, treatments, and more.
Targeted savings (e.g., family home improvements)
It is also common for migrants to use remittances to build or renovate their family homes, thereby improving their quality of life.
Unexpected expenses during travel or temporary stays
Remittances may also be useful to cover unexpected travel expenses, related to unforeseen illnesses, flight cancellations, or unplanned charges.
How Do Remittances Work and What Options Exist?
Currently, there are several remittance service options you can rely on to send money to your relatives.
Traditional banks, such as Bank of America and Wells Fargo, allow you to make remittance transfers through their digital banking services or directly at branches.
There are also specialized sending agencies, such as Western Union, one of the most widely used and longest-standing remittance services in the United States, with a global presence in more than 200 countries.
The information that traditional banks and agencies will generally require to send money includes:
- Beneficiary’s full name
- Beneficiary’s account number
- SWIFT code
- Receiving country
- Amount and currency
Finally, you can choose digital platforms, which allow you to send money through mobile apps and, in general, offer more competitive options regarding costs and delivery times.
Común is one of these platforms, integrating the fintech experience with various benefits, such as a digital account and an easy to use mobile app, that is available in Spanish. Común accepts more than 100 qualified official IDs from your country of origin to open an account and offers different options for receiving money: into a local bank account or cash pickup. With Común, send money to your relatives for clear and competitive rates, from $2.99 USD and send up to applicable limits.
These Are the Characteristics of Each Available Remittance Sending Option:
Traditional Banks
Traditional banks are a safe option to send money through wire transfer. The advantage is that they are fully established institutions in the U.S. financial system.
However, they have certain limitations, such as high fees, which can reach 60 USD depending on the bank. Additionally, transfers also tend to be slower, taking up to 5 business days.
To access this service, it is necessary to open a bank account at a traditional U.S. bank, or resort to sending cash directly at a branch.
Money Sending Agencies
Specialized agencies for international money transfer, such as Western Union, are also a reliable alternative you can use.
However, fees are usually high and exchange rates less competitive, similar to traditional banks. Although delivery times tend to be shorter.
Digital Platforms
If you are looking for an option to make international bank transfers, digital platforms are a great option. In addition to more accessible opening requirements, they offer far more competitive fees compared to the two previous alternatives.
Remember that Común offers you a comprehensive digital platform to connect with your loved ones in a simple and fair way.
Costs, Timeframes, and How to Save When Sending Remittances
The cost of sending remittances depends on three main factors:
- Sending fee: this is the commission charged by the provider for offering its sending services. This amount varies depending on the method, amount, receiving country, and involvement of intermediaries. The fee may be variable or fixed. One option is to choose a service with a fixed fee, to avoid paying more than expected.
- Exchange rate: a common practice among remittance services is not using the real market exchange rate, but adding a margin that reduces the total amount to be received.
For example, if the dollar price is 18 Mexican pesos, and the remittance service offers it at 17.50, when sending 500 USD, the total amount to be received will be reduced by 250 pesos.
- Possible charges to the recipient: Some traditional banks may charge fees for receiving transfers from foreign countries, so it is important to also verify the recipient’s conditions.
Good Savings Practices for Sending Remittances
To ensure your family receives the maximum amount possible, we recommend following these tips.
Check if there are margins in the exchange rate
The ideal choice is a provider that uses the real exchange rate or as close as possible. Otherwise, your recipient will receive a significantly smaller amount.
Prefer fixed and transparent fees
Understanding sending fees can be confusing, since several services use ranges that vary according to numerous criteria. The recommended approach is to look for a provider that offers fixed fees and with no hidden costs.
Always compare the amount received (not just the fee)
Remember that, in addition to the sending fee, you must consider the exchange rate and how much the amount to be received is reduced after applying this margin.
Avoid data errors to prevent delivery delays
Check your recipient’s information and make sure it is written correctly.
Consider the sending time and holidays in both countries
In many cases, transfers may be delayed if they are made on weekends or on holidays in either country.
Use platforms with support available in Spanish to resolve questions quickly
It is important to choose a service capable of answering your questions in your language and understanding your needs as a migrant.
Get Ready to Start Sending Remittances with Común
Every month, millions of dollars are sent from the United States to Latin America, representing an emotional and financial bridge between immigrant families and their homes, for whom remittances are a primary source of income.
Before choosing a remittance service, don’t forget to check the total amount your household will receive, considering the fee, exchange rate, and possible receiving charges. We recommend choosing a financial solution with transparent costs, support available in Spanish, and you can open your account with qualifying official ID from your country of origin.
Discover Común, the comprehensive platform that offers you low fees, with fees starting from $2.99, and send up to the applicable limits, and support available in Spanish. Open your account today and connect with your loved ones, send them money transparently.
Frequently Asked Questions (FAQ)
What happens if I don’t claim a remittance?
Remittances usually have a validity period established by the provider. Once that period expires, the money is not lost but the transaction may be canceled. In such cases, the sender may reissue it or request a refund depending on the provider’s policies.
What is the difference between a remittance and a transfer?
The main difference between the two lies in their intended purpose. Remittances are money transfers with a personal motive, commonly used to send money to relatives in other countries, whereas the purpose of a bank transfer can vary, ranging from commercial to personal payments, among others.
Living in the United States
Direct deposit vs wire transfer: comparison guide for U.S. immigrants
8 min de lectura
Direct deposit vs wire transfer: comparison guide for U.S. immigrants
These payment methods are both available in the U.S. but they are often used for different purposes. Direct deposit is commonly used for paychecks, tax refunds, and government benefits, while wire transfers are more often used for urgent or high-value transfers between financial institutions.
Understanding the difference between direct deposit and wire transfers can help you avoid unnecessary fees, choose the right payment method for your situation, and manage your money more confidently.
What's the difference between direct deposit and wire transfer?
The biggest difference is the purpose they serve. Direct deposit is commonly used for recurring payments such as salaries, benefits, and tax refunds. Wire transfers are commonly used to move money quickly between financial institutions, particularly for large or time-sensitive transactions.
| Feature | Direct deposit | Wire transfer |
|---|---|---|
| Common use | Paychecks, benefits, tax refunds | Large or urgent transfers |
| Network used | ACH network | Wire transfer network |
| Speed | Typically 1–3 business days | Often same day or next business day |
| Typical cost | Often no fee to receive | Fees may apply |
| International transfers | Limited | Commonly used |
| Recurring payments | Yes | Less common |
| Setup required | Routing + account number | Bank details + recipient information |
How direct deposit works
Direct deposit is one of the most common payment methods in the United States, particularly for employees receiving wages from an employer. Instead of issuing a paper check, an employer sends the payment electronically to the employee's bank account through the ACH network.
To set up direct deposit you need to provide your employer: your bank's routing number and your personal account number.
How wire transfer works
A wire transfer is an electronic transfer of funds between financial institutions through secure financial networks like Fedwire or SWIFT. Unlike direct deposit, wire transfers are better suited for large one-time payments, urgent payments, real estate transactions, or international transfers.
When to use each one
Use direct deposit for:
- Receiving your paycheck
- IRS tax refunds
- Social security or unemployment benefits
- Recurring business payments
Use wire transfer for:
- Real estate payments (down payment, closing)
- Urgent international transfers
- High-value business payments
- When the recipient specifically requires a wire transfer
How to set up direct deposit with Común
With your Común account, you can set up direct deposit by providing your Común routing number and account number to your employer. Your Común account has unique routing and account numbers available in the app. Visit comun.app to learn more.
FAQ
Is direct deposit faster than wire transfer?
Not necessarily. Domestic wire transfers can be faster (same day), while direct deposits usually take 1-3 business days. However, many accounts offer early access to direct deposits up to 2 days early.
How much does it cost to set up direct deposit?
Setting up direct deposit is generally no fee. Employers use the ACH network to send payroll electronically at no charge to the employee.
Común is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank, Member FDIC.
Financial Education
We explain your bank account number in 2026: a guide for immigrants
8 min de lectura
What is a bank account number and understanding bank account numbers: A 2026 guide for immigrants
If you recently opened your first bank account in the U.S. or received account and routing numbers you do not fully understand, learning what these numbers mean can make everyday banking much easier. These numbers are commonly used for direct deposits, tax refunds, ACH transfers, and automatic bill payments.
Your bank account number works as the identifier for your personal account within the banking system. Combined with your routing number, it helps employers, government agencies, and payment platforms send money to the correct place securely.
What is a bank account number?
A bank account number is a unique sequence of digits assigned to an account holder by a financial institution. It functions much like a physical address for your account within the broader banking network, distinguishing your account from others and ensuring that transactions are accurately processed.
Structure of a bank account number
The format of bank account numbers varies by financial institution, but generally includes several key components:
- Bank code/institution number: identifies the financial institution
- Branch code/sort code: identifies the specific branch where the account was opened
- Account number: the unique identifier for your personal account
- Check digits: help detect typing errors
What is the bank account number used for?
- Payroll direct deposits
- IRS tax refunds
- ACH transfers between banks
- Automatic bill payments
- Identity verification with financial institutions
Account number vs. routing number: what is the difference?
Routing number:
A 9-digit code that identifies the bank or financial institution. It is the same for all customers at the same bank.
Account number:
Unique to your specific account. No one else at the bank has the same account number as you.
When setting up a direct deposit, you generally need to provide BOTH: your bank's routing number and your personal account number.
Where do you find your account number?
- On your checkbook checks (bottom section)
- In your bank's mobile app (account information section)
- On bank statements
- By contacting your bank's customer service
How to protect your account number
- Share it only with trusted entities like your employer or the IRS
- Monitor your account regularly for unauthorized activity
- Do not post it on social media or unsecured emails
- If you suspect your account number was compromised, contact your bank immediately
FAQ
Does my account number change if I lose my debit card?
Generally no. Your card number is different from your bank account number. When you lose your card, the bank issues a new card with a different number but your bank account number generally remains the same.
Can I have more than one account number at the same bank?
Yes. If you have multiple accounts (e.g., checking and savings) at the same institution, each account has its own unique number but they will share the same routing number.
Común is a financial technology company and not a bank. Banking services are provided by Community Federal Savings Bank, Member FDIC.
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.
