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.

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.

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Unrecognized charge on my debit card: What to do in the United States?

If you notice an unrecognized debit card charge, one of the first steps is to lock your card, verify whether the transaction was actually unauthorized, and contact your financial service provider immediately. If you are a Común debit card holder, you can report suspicious activity directly through the app, email, or WhatsApp support.

Seeing an unrecognized charge on your debit card can be stressful, especially if you rely on your account for rent, groceries, transportation, or sending money to family. Unauthorized transactions can happen for many reasons, and debit card users in the United States have certain protections under the Electronic Fund Transfer Act (EFTA) and Regulation E.

It is also important to understand that not every unfamiliar transaction is considered fraud. Some charges may come from subscriptions, merchants using different billing names, or purchases made by someone who had permission to use the card.

What is an 'unrecognized' vs 'unauthorized' charge?

An unrecognized debit card transaction

is a transaction you do not immediately recognize. This does not necessarily mean fraud occurred. Examples: a merchant billing under a different legal name, a forgotten subscription renewal, a delayed hotel or gas station authorization, a trial membership converting into a paid subscription, or a family member using the card.

An unauthorized charge

generally means someone used your debit card or account information without your permission. Examples: purchases made after your card was lost or stolen, online purchases you did not authorize, potentially fraudulent recurring charges, or transactions occurring after your credentials were compromised.

It is important to understand that if you voluntarily gave your card, PIN, password, or account access to a family member, partner, or friend, those transactions may not qualify as unauthorized under Regulation E.

How can I identify a suspicious charge?

Checklist for an unrecognized debit card charge:

• Review the merchant name carefully — many businesses process payments under a parent company or billing processor that looks unfamiliar
• Check the transaction date — some charges appear several days after the original purchase
• Look for recurring subscriptions — streaming platforms, delivery apps, gyms, and trial memberships commonly renew automatically
• Verify the location — some online merchants process payments from another state or country even when the transaction was legitimate
• Ask family members — a spouse, child, roommate, or trusted person could have used the card
• Watch for small 'test' charges — fraudsters sometimes attempt small transactions before attempting larger purchases

What to do right away if you notice an unauthorized charge?

1. Lock your card immediately

If your financial service provider offers a card lock feature, you can temporarily freeze your card to help prevent additional transactions while you review the activity further.

2. Report the transaction to your financial service provider

Reporting a potentially unauthorized transaction promptly helps preserve certain protections available under applicable law. If you use Común, you can contact support through:

• In-app chat
• Email: ayuda@comun.app
• WhatsApp: +1 646 600 5660

When reporting the transaction, try to include: the transaction amount, merchant name, transaction date, and why you believe the charge is unauthorized.

3. Document everything

Take screenshots and save records of suspicious transactions, text alerts or emails, merchant communications, and subscription cancellation confirmations.

4. Change passwords and security settings

If you suspect your account information was compromised: change your password, update your email password, enable Face ID or Touch ID, review connected devices, remove suspicious app access, and if your PIN may have been exposed, change it immediately.

5. File a police report if appropriate

If your wallet was stolen, your identity may have been compromised, or the situation involves significant financial loss, contacting law enforcement and filing a police report may help support your case.

Your rights as a US Debit Cardholder

Debit card protections in the United States are primarily governed by the Electronic Fund Transfer Act (EFTA) and Regulation E.

What is the 'Visa Zero Liability' policy?

Visa's Zero Liability policy generally provides protection for eligible unauthorized transactions made with covered Visa debit cards, subject to applicable terms, conditions, and limitations.

Key aspects:

• Protection scope: may apply to certain unauthorized transactions involving lost, stolen, or fraudulently used cards
• No enrollment necessary: the policy applies automatically to eligible Visa cards without requiring special sign-up
• Prompt reporting: to qualify, you must promptly report potentially unauthorized transactions to your financial institution
• Limitations and exclusions: certain transactions, including commercial card or anonymous prepaid card transactions, may not be covered

How does the Común dispute process work?

Once you report an unrecognized or potentially unauthorized debit card transaction to Común, the investigation process may include several stages. Typical timelines may include:

• Initial review beginning within approximately 2 business days
• Potential provisional credit within applicable regulatory timeframes for qualifying disputes
• Extended investigations in certain situations
• Visa dispute or arbitration processes that may take up to approximately 90 days in some cases

What is not covered?

Some situations may not qualify as unauthorized transactions under Regulation E or Visa Zero Liability protections:

• Charges made by family or friends who had access to your card or account
• Transactions you approved but later disputed due to dissatisfaction
• Wallet-only customers without a Común debit card
• ComúnPay P2P transactions funded through external debit cards
• Cases involving negligence or false claims

How can I help prevent unauthorized charges?

Use card lock and unlock features:

Locking your card when not in use may help reduce unauthorized transactions.

Enable real-time transaction alerts:

Instant transaction notifications through the app can help you identify suspicious activity more quickly.

Use Face ID or Touch ID:

Biometric authentication features can help reduce unauthorized account access.

Protect your PIN:

Avoid sharing your PIN, even with people you trust. Never store it in unsecured notes apps or write it directly on your card.

Watch for phishing scams:

Fraudsters may impersonate banks through text messages, fake login pages, phone calls, or social media messages. Banks and service providers will not ask for your password or verification code through text message.

FAQ

What is an unrecognized charge on my debit card?

An unrecognized charge is a transaction you do not immediately recognize on your account. It does not always mean fraud occurred.

How long do I have to report an unrecognized charge?

Under Regulation E in the United States, reporting suspicious transactions promptly is important. Certain consumer protections may decrease after 2 business days and again after 60 days from the date the statement was sent.

Will I get my money back if I report an unauthorized charge?

It depends on the investigation results and whether the transaction qualifies as unauthorized. In some qualifying cases, consumers may receive reimbursement or provisional credit.

What happens if I let a family member use my card?

If you voluntarily shared your card, PIN, password, or account access, the resulting transactions may not qualify as unauthorized under Regulation E or applicable Visa Zero Liability policies.

How long does Común take to resolve a dispute?

Investigations may begin within approximately 2 business days. Some cases may be resolved more quickly, while more complex disputes or Visa dispute processes may take longer, including up to approximately 90 days in certain situations.

Final thoughts

An unrecognized charge on your debit card does not always mean fraud, but it is important to review unfamiliar transactions promptly. In the United States, Regulation E or the Visa Zero Liability protections can help limit your liability for qualifying unauthorized transactions, particularly when reported promptly.

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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?

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.

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Do you have children about to enter school in the United States? Understanding the U.S. education system is essential for adapting to a new culture and preparing for the differences compared with your country of origin.

Broadly speaking, the U.S. education system is divided into three stages: Elementary School, Middle School, and High School. Each plays a specific role in students’ academic journey. This system covers ages 5 through 18 and forms the central framework of schooling in the country.

In this article, we explain each of these stages and detail their purpose to demystify how students progress through the system and its educational levels in the United States.

Levels of the U.S. education system: Everything you need to know

In the United States, it is common for children to begin schooling around age 5. After kindergarten, it is divided into 12 grade levels.

Below, we show how the U.S. education system is structured.

Early childhood education

Early childhood education or preschool is not mandatory in the United States. However, it is common for children under age 5 to attend pre-K (preschool) or kindergarten.

These centers focus on young children’s cognitive development through play and early literacy activities. For this reason, there is no grading system. Kindergarten is offered through private and public options or via the Head Start social assistance program for low-income families.

Elementary school

After that, children will enter primary education or Elementary school starting around age 6, depending on the school district.

This level typically covers 1st through 5th grade and is characterized by the gradual introduction of more advanced knowledge, with the aim of building cognitive and social development through learning skills such as mathematics, science, and language, among others.

• Characteristics: students generally have the same teacher for almost all subjects, except for those requiring specialized knowledge, such as physical education.

• Grading system: it can vary by district, but it is common for students to be assessed using a letter scale—A, B, C, D, and F—or, alternatively, a numeric scale from 1 to 4.

• Approximate Ages: between 6 and 11.

Middle school (junior high school)

After finishing primary education, students continue with Middle school, which typically covers 6th through 8th grade. It is a transitional stage between primary and secondary education.

• Characteristics: students have a different teacher and classroom for each subject, which promotes independence and socialization.

• Grading system: the formal A through F system is typically being used.

• Approximate Ages: between 11 and 14.

High school

The next level is secondary school or High school, typically covering grades 9 through 12. It culminates in the High school diploma, a basic requirement to continue with higher education or enter the job market.

• Characteristics: in addition to required subjects such as English, math, and science, students can complement their education with electives and extracurricular activities.

• Grading system: both the A–F letter scale and the GPA (Grade Point Average) are generally used; GPA serves as an indicator of academic performance and is key for college admission.

• Approximate Ages: between 14 and 18.

Postsecondary education

Postsecondary or higher education in the United States includes different types of programs as well as private and public schools. Although it is not strictly mandatory, it provides more opportunities for good jobs and higher earnings.

These are the types of higher-education institutions in the U.S.

Public or private universities

• They offer a curriculum lasting approximately 4 years.

• Upon completion and passing of the program, graduates receive a Bachelor’s degree.

• The admission process depends on prior academic performance, reflected in the GPA.

• There are public universities funded by the government and private universities as well.

Community colleges

• These are public colleges offering educational programs that last 2 years.

• Upon completing this program, students earn an Associate’s degree, equivalent to a technical program.

• They are more accessible than a university, and admission rates are also higher.

If you need to send money to another country, explore some options and tips.

Technical or vocational institutions

• They focus on acquiring knowledge related to practical trades, such as nursing, graphic design, and programming.

• They also offer certificates to recognize completed studies.

The U.S. education system can be somewhat confusing compared with other countries, such as some in Latin America. Below is a comparison table to clarify general equivalencies, keeping in mind that there are variations in each country.

How does the school year work in the United States? Key aspects

The U.S. education system is characterized by flexibility to adapt to students’ abilities and interests in order to foster their full potential.

For this reason, it is common for students to be placed into specific classes according to their learning level, which may be more or less challenging.

• Placement depends on several factors, such as:

• How well the student understands English or their test scores—especially for foreign students

• Recommendations from parents/guardians

• Standardized test scores and prior academic performance

• Willingness to complete challenging assignments

• The student’s interest or motivation

• Teacher or counselor recommendation

• Examples of student work demonstrating their level of understanding and skills

Another relevant aspect to consider is the school calendar and schedule in the United States. These can vary by state and school district, but in general the school year begins in late August or early September and ends in late May or early June.

How to manage your finances in the United States with Común

As you can see, the U.S. education system is intentionally designed to guide students from basic education through higher studies and, afterward, into working life.

Each level has a clear function, which makes it easier for families, students, and educators to plan and provide support in order to make more informed decisions along the school path.

Without a doubt, your children’s education is one of the most important investments, because it is a way to secure their future.

Común is the ideal financial platform to help you manage tuition payments and handle school expenses for higher education.

Común is a financial platform with a mobile app that makes it easy to open accounts in the U.S. with a qualified official ID from your country of origin, send low-cost remittances, and provide bilingual Spanish and English language support for the immigrant community.

Learn about all the benefits of opening an account with Común for you and your family.

As an immigrant, Común allows you to open an account with a qualified official ID from your country, with no hidden fees and bilingual Spanish and English language support.

Frequently asked questions

If you still have questions, consult our Q&A section.

How do you enroll your child in school?

Go to the school district where you live to find out which school corresponds to your address. Complete the required documents and the enrollment application.

Requirements may vary by state or school district, so it is important to verify directly with your local school.

What is the difference between a public and a private school in the United States?

Public schools are funded by government tax revenues, while private schools are funded by tuition.

What do Freshman/Sophomore/Junior/Senior mean?

These are the terms used in U.S. high schools and universities to indicate year level

• Freshman: 1st year

• Sophomore: 2nd year

• Junior: 3rd year

• Senior: 4th year

What is needed to enter school in the United States?

• Minimum age depending on the level

• Birth certificate

• Up-to-date vaccination record

• Proof of residence in the district

Small Businesses

Running a small business involves making numerous financial decisions, and choosing the right banking services is crucial for success. Separating personal assets from business assets in an LLC structure is important for protecting personal property in case of business bankruptcy. Community banks and modern financial platforms offer a variety of services tailored to meet small businesses' unique needs. This complete guide explores the essential banking services for small businesses, highlighting their benefits and how they can support growth and stability.

Understanding Different Types of Small Businesses and Their Banking Needs

Before exploring specific banking services, it's essential to understand the range of small businesses and their unique financial needs. Different types of small businesses — like sole proprietorships, partnerships, LLCs, corporations, nonprofits, home-based businesses, and startups — require tailored banking solutions to support their growth and stability. Keeping business and personal bank accounts separate offers benefits like accurate record-keeping, simplified tax preparation, better financial organization, and enhanced professionalism. By recognizing these differences, you can better appreciate how community banks and financial platforms like Común meet small business owners' diverse needs. This understanding lays the groundwork for selecting the most appropriate banking services to ensure financial health and success.

Business Checking and Savings Accounts

Having a dedicated business checking account is fundamental to managing your finances effectively. It lets you separate personal and business transactions, simplifying bookkeeping and ensuring clear financial records. Many banks offer business checking accounts with features like free transactions, low fees, and online banking capabilities.

When opening a business bank account, gather the required documentation, like your Employer Identification Number (EIN), and decide whether you want to apply online or visit a branch. Understanding the fees and essential steps to open the account is crucial.

A business savings account is also vital. It helps you set aside funds for future investments, emergencies, or growth opportunities. Look for accounts with competitive interest rates and flexible access to your funds.

Business Loans and Lines of Credit

Access to credit is often essential for small business growth. Community banks and other financial institutions provide various loan products, including term loans, lines of credit, and SBA loans. These financial products can help you finance new equipment, expand operations, or cover unexpected expenses.

• Term Loans: Term loans issue lump sums of capital that are repaid over fixed periods of time with predetermined interest rates. They're suited for large, one-time investments, like purchasing equipment or renovating a workspace. The predictable repayment schedule helps with budgeting and long-term planning.
• Lines of Credit: Lines of credit offer flexible borrowing options, letting you draw funds as needed and pay interest only on the amount you use. This flexibility can be a lifesaver during cash flow shortages or when financing immediate needs, like inventory purchases or emergency repairs. Lines of credit are revolving, meaning funds become available again as you repay them, making them an ongoing financial resource.
• SBA Loans: Small Business Administration (SBA) loans are partially government-guaranteed, making them more accessible to small businesses that might not qualify for traditional loans. They offer competitive interest rates and longer repayment terms, which can be particularly beneficial for startups and businesses with less-established credit histories.

Working with a community bank for loans and lines of credit means you benefit from personalized service. Bank representatives can provide tailored advice, helping you choose the right loan product for your needs and guiding you through the application process. This relationship-based approach ensures you get the support needed to grow your business sustainably.

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Payment Processing, Payroll, and Cash Flow Management Services

Effective financial operations are critical to any small business's success. This includes processing payments, managing payroll, and ensuring efficient cash flow. Here's how comprehensive banking services can support these needs:

• Merchant Services: Merchant services are crucial for businesses that need to process customer payments. These services include credit card processing, point-of-sale (POS) systems, and online payment gateways. A reliable merchant services provider ensures transactions are processed quickly and securely, improving customer satisfaction and cash flow. By offering seamless payment solutions, banks help businesses deliver a better customer experience and streamline their revenue collection process.
• Payroll Services: Managing payroll can be complex and time-consuming. Many banks offer payroll services to simplify this process. These services handle everything from calculating wages and taxes to direct deposits and payroll tax filing. By outsourcing payroll, businesses can ensure accuracy and compliance with tax regulations, freeing up time to focus on core operations. Efficient payroll management not only saves time, but also helps maintain employee satisfaction by ensuring timely, accurate payments.
• Cash Management: Effective cash management is essential to maintaining healthy cash flow. Banks offer various cash management services, including remote deposit capture, ACH payments, and wire transfers. These tools help businesses efficiently manage incoming and outgoing funds, reducing time spent on manual processes and improving overall financial control. Proper cash management ensures businesses can meet their financial obligations and invest in growth opportunities without experiencing cash shortages.

By integrating these services, banks provide a comprehensive solution that supports small businesses in maintaining smooth, efficient financial operations.

Online and Mobile Banking

In today's digital age, online and mobile banking are indispensable. These services provide convenient access to your accounts, letting you monitor transactions, transfer funds, and pay bills anytime, anywhere.

• Digital Transformation: Community banks are adopting new technologies to improve the customer experience through online and mobile banking platforms. These platforms offer 24/7 access to your accounts, letting you manage your finances from the comfort of home or on the go. You can easily check balances, view transaction history, and transfer funds between accounts.
• Advanced Features: Many online and mobile banking services include features like bill pay, mobile check deposit, and budgeting tools. Bill pay lets you schedule payments to vendors and service providers directly from your account, ensuring timely payments and simplifying your bookkeeping. Mobile check deposit lets you deposit checks by taking a photo with your smartphone, saving trips to the bank.
• Security Measures: Online and mobile banking platforms use advanced security measures to protect customer data and ensure secure transactions. This includes encryption to protect information, multi-factor authentication to verify user identity, and regular security audits to identify and address potential vulnerabilities. Real-time fraud alerts help you quickly detect and respond to suspicious activity, improving your overall financial security.

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Common Problems Small Businesses Face With Banking Services and Financial Health

While banking services are crucial to small business operations and growth, many small business owners face various challenges when managing their financial needs. Understanding these issues can help businesses make more informed decisions and find solutions that better fit their requirements.

• High Fees and Hidden Costs: Many small business owners find that banking services come with high fees, including monthly maintenance charges, transaction fees, and penalties for not maintaining a minimum balance. Hidden costs, like wire transfer fees, overdrafts, and additional services, can also add up, putting pressure on the business's cash flow.
• Limited Access to Credit: Securing loans and lines of credit can be particularly challenging for small businesses, especially startups or those with less-established credit histories. Traditional banks often have strict lending criteria, making it difficult for small business owners to access the funds they need for growth and operations.
• Inadequate Customer Service: Small business owners frequently report dissatisfaction with the customer service provided by their banks. Long wait times, lack of personalized service, and insufficient support for small-business-specific issues can hinder a business's ability to effectively manage its finances and resolve issues quickly.
• Complexity and Inaccessibility: Banking services can often be complex and difficult to navigate. Small business owners, who may not have extensive financial knowledge, can find it challenging to understand and use the full range of services offered. Additionally, inaccessibility to bank branches or limited online services can be a significant obstacle for businesses that require frequent banking interactions.
• Security Concerns: With the growing prevalence of cyber threats, security is a major concern for small businesses. Ensuring banking services offer robust security measures to protect sensitive financial data is crucial. However, not all banks offer the same level of security, leaving some businesses vulnerable to fraud and data breaches.
• Integration With Business Tools: Small businesses often use various tools and software to manage their operations, like accounting software and payment processing systems. Issues can arise when banking services don't integrate smoothly with these tools, leading to inefficiencies and increased administrative burden.
• Lack of Financial Education and Support: Many small business owners struggle with financial literacy, which affects their ability to make informed banking and financial decisions. Banks that don't offer enough financial education resources or support can leave business owners feeling overwhelmed and ill-prepared to manage their finances effectively.
• Limited Product Offerings: Some banks may not offer a wide range of products tailored to small businesses' specific needs. This can include specialized loan products, cash management services, or flexible payment solutions. Limited product offerings can restrict a business's ability to find suitable financial tools that support its growth and operational needs.

Understanding these common issues can help small business owners better navigate the challenges they face with banking services. By seeking out community banks or financial platforms like Común that prioritize transparency, customer service, security, and integration with business tools, small businesses can find banking solutions better suited to their needs and supportive of their financial success.

Conclusion:

Choosing the right banking services is essential for your small business's success and growth. From checking and savings accounts to loans, merchant services, and digital banking, the right financial products and support can help you manage your finances effectively and reach your business goals. By partnering with a community bank and leveraging platforms like Común you can access the tools and expertise needed to thrive in today's competitive market.

Integration and Support

Many community banks pride themselves on offering personalized service and financial advice. Building a relationship with your bank can provide valuable insight into managing your finances, accessing credit, and planning for future growth. Take advantage of workshops, seminars, and one-on-one consultations offered by your bank to improve your financial literacy and business knowledge.

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For small businesses looking to leverage modern financial technology, integration with platforms like Común can improve their banking experience. Común offers a range of features tailored to small businesses, including instant notifications, secure login, and personalized customer support available seven days a week. By combining the strengths of traditional community banking with the convenience of digital banking, Común provides a comprehensive solution for managing your business finances.

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What is the best health insurance in the United States?

Having health coverage is essential to ensure you receive care when you need it. It’s also a way to invest in your future by preventing large out-of-pocket expenses from costly procedures.

There are many health insurance options in the U.S., so there isn’t a single “best” plan—what’s best depends on your needs and budget.

Although access to healthcare is a basic need, enrolling in a plan can be confusing for immigrant communities.

Below you’ll find a comparison of the main health insurance options in the U.S., key evaluation criteria, and answers to frequent questions—so you can choose the best option to protect you and your family.

Factors to consider when choosing health insurance

Before choosing a plan, carefully assess your personal and family needs, as well as benefits, medical terms, and the features of each option.

Key points to keep in mind before signing anything.

• Coverage level. 

Some plans cover only basic services, while others offer comprehensive coverage including hospitalization, specialist visits, and prescription drugs. Review your medical needs (and your family’s) to gauge the right level.

• Monthly premium cost. Coverage level affects the monthly price. Make sure the amount is sustainable for your long-term budget.

• Deductibles and copays. 

You must understand both before enrolling. The deductible is what you pay out of pocket before your plan starts paying; the copay is the fixed amount you pay each time you use a covered service.

• Provider network. 

Check that the plan includes a robust network of hospitals and clinics near your home or work, so you can access care when needed.

• Eligibility requirements. 

As an immigrant in the U.S., note that some plans require certain immigration status, state residency, and/or income qualifications.

• Additional benefits. 

Also review extras such as preventive care, mental health, wellness programs, and maternity coverage.

Remember: a low price doesn’t automatically mean the best option—it must fit your (and your family’s) specific needs.

Health insurance options in the United States

The U.S. health insurance market includes a range of public and private plans.

Here are key options you should know.

• Health insurance via the Marketplace (ACA). 

Plans under the Affordable Care Act (ACA) are offered through federal/state marketplaces. They must include essential health benefits and prescription coverage. Income-based subsidies may lower costs.

• Medicaid. 

A public program for people with low incomes; covers children, pregnant people, people with disabilities, and families. Usually no premium; some services may have small copays.

• Medicare. 

A program for people 65+ (and some with disabilities). It’s divided as follows: 

1. Part A: hospital inpatient. 
2. Part B: medical services. Part C: Medicare Advantage (private insurers) that can bundle extra benefits.

• Private plans and employer-sponsored insurance. 

Private coverage can be purchased directly or provided as an employer benefit. These plans vary in coverage levels and typically include broad provider networks.

Comparison of common health insurance options

Remember: beyond a policy, a health plan is protection for you and your family—take the time to choose well.

Here’s a comparative table of major U.S. health plan types.

Plan type

Who it serves

Approx. costs

Primary coverage

ACA Marketplace

People without employer private insurance.

Costs vary by coverage; income-based subsidies can lower premiums.

Essential benefits: hospitalization, preventive care, prescriptions, emergency care, etc.

Medicaid

People with low incomes.

Generally no premium; small copays for some services.

Broad medical and hospital coverage nationwide.

Medicare

People 65+ and certain disabilities.

• Part A: per-period deductibles. 
• Part B: monthly premium ~$185.

Hospital and medical services coverage

Employer-sponsored private insurance

Workers (and dependents) covered by employers.

Costs include premiums, deductibles, and copays—vary by plan.

Hospital, specialists, prescriptions, emergency services, etc.

Don’t forget: as an immigrant in the U.S., verify eligibility rules related to immigration status.

Manage your finances in the U.S. with Común

In this article, we covered what to consider before enrolling, the different plan types, and how to compare benefits.

There’s no single “best” plan—it depends on your personal and family needs and budget.

Beyond medical costs, immigrants need safe financial services to manage their money.

Común is the financial platform you’ve been looking for—discover the benefits!

• Checking account with clear, competitive fees.

• International money transfers at affordable costs.

• Mobile app available in Spanish that accepts 100+ official IDs for account opening.

• Debit card for everyday purchases and payments.

Open your Común account today and manage U.S. medical bills simply and transparently.

Frequently Asked Questions (FAQ)

If you still have questions, see the section below.

What is the number-one health insurer in the U.S.?

Among the top U.S. health insurers are: 

• Cigna. 
• Aetna. 
• Blue Cross Blue Shield. 
• Ambetter.
•  Anthem.

Is health insurance mandatory in the U.S.?

It isn’t required at the federal level, but some states—like California and New Jersey—mandate coverage or impose penalties.

Where can I officially compare health plans?

Official sources include: HealthCare.gov (federal Marketplace to view/compare/enroll); Finder.Healthcare.gov (to find off-Marketplace plans); Medicare.gov (compare Medicare plans by ZIP code).

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Traditional banks typically charge monthly maintenance fees (between $12 and $25) and overdraft fees (averaging $34 per transaction). Without a bank account, many people end up paying more at check-cashing stores and money transfer services.

Today, many Latinos living in the United States may be overpaying for financial services. According to a 2021 report from the Federal Deposit Insurance Corporation (FDIC), 24.1% of Hispanic households are underbanked, meaning the household has a checking or savings account at a financial institution but has also used other services (for example, money orders, remittance transfers, check cashing) outside their bank or credit union. Accessing additional services outside a bank can be costly.

The FDIC report also found that 9.3% of Hispanic households are unbanked, meaning no one in the household has a checking or savings account at a financial institution. Not having access to banking services can limit access to certain financial products and services, like savings accounts that offer investment opportunities and insurance options.

To examine the cost Latinos may be paying to access financial services in the United States, Común conducted an analysis comparing the cost if someone were a Común customer versus a traditional financial institution. The study also looked at the cost of not having access to banking services. Additionally, Común analyzed the cost of all three options over the course of a year, and how much someone could save by using a service like Común over one year and over a five-year period.

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Comparison table to translate and rebuild in Webflow (values unchanged):

Financial Service Type | Común | Traditional Bank | Unbanked

Account opening* | $0 | $100* | $0

Monthly cost | $0 | $144.00 | $0

Cash deposit fee (ATM) | $42 | $60 | $0

Remittance fee | $66 | $1,080 | $184

Overdraft fee | $0 | $0 | $0

Early direct deposit | $0 | $0 | $0

Check deposit fee | N/A | $0 | $96

Money order fees | N/A | N/A | $24

Total | $108 | $1,284 | $304

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*Note: Común did not include the account opening fee in the total for the traditional bank, since we assumed this user would not maintain minimum balance requirements and would therefore incur a $12 monthly fee.

How Much Customers Can Save in a Year Using a Service Like Común:

Cost of a traditional bank account: $1,176

The cost of being unbanked: $196

How Much Customers Can Save Over Five Years Using a Service Like Común:

Cost of a traditional bank account: $5,881

The cost of being unbanked: $981

Additional Notes

Beyond direct costs like check cashing or money order fees, unbanked people also incur many indirect costs, such as:

1. High borrowing costs: Without a bank account, accessing credit can be more complicated and costly. Unbanked people may turn to alternative financial services, like payday loans or pawn shops, which typically charge high interest rates and fees. Having a bank account and a good banking relationship can qualify people for lower-interest loans and other credit products.
2. Limited access to financial services: Being unbanked can result in limited access to certain financial services and products, like savings accounts, investment opportunities, and insurance options. This lack of access can hinder people's ability to build wealth and protect themselves financially over the long term.
3. Security risks: Keeping cash at home can be risky, since it's vulnerable to theft, loss, or damage. Bank accounts offer a secure way to store and access funds, reducing the risk of financial loss due to theft or other unforeseen circumstances.

Methodology

The analysis was conducted in April 2024 by Común. The data examines the annual cost of using a service like Común, a traditional bank account, or being unbanked for financial services. In this analysis, we looked at the cost of a checking account at a traditional financial institution, as well as the cost of services outside a financial institution, and made these assumptions:

• Minimum balance to open an account
• Común cost: $0
• Traditional financial institution cost: $100, based on the minimum balance needed to open the referenced bank account.
• Monthly cost
• Común cost: $0
• Traditional financial institution cost: A $12 monthly fee, assuming the $1,500 minimum daily balance isn't met
• Two cash deposits (ATM) per month
• Común cost: $0 to use an in-network ATM and $3.50 to use a retail partner to make a deposit. Común assumed a user makes two deposits per month, one at a retail store and one at an in-network ATM.
• Traditional financial institution cost: $2.50 for a deposit at another financial institution and $2.50 if using an out-of-network ATM. For the bank account analyzed in this report, there's no charge for branch cash deposits. However, this bank charges $2.50 for deposits at other ATMs. The retail store will also charge the customer, which varies by location, but Común assumed $2.50.
• Two remittance transfers per month
• Común cost: Customers can send their first remittance at no cost. After that, remittances carry a fee starting at $2.99.
• Traditional financial institution cost: $45 to send international dollar transfers
• For the unbanked, Común assumed the person sends remittances with Western Union, which costs $8 per transfer in flat fees if the user is depositing cash at a Western Union location in the United States and the recipient is picking up cash at a Western Union location in Mexico (source: fee calculator). Común assumed 2 remittances per month over a year, with the first remittance at no cost (a Western Union promotion).
• Check cashing fee
• We assume a user cashes two checks a month and pays $4 each time (fee amount from Walmart).
• Money order fee
• We assume a user buys two money orders a month and pays $1 each time (fee amount from Walmart).

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What does a traditional bank really cost?

Monthly maintenance fees, overdraft charges (averaging $34 per transaction industry-wide), and out-of-network ATM fees are the most common costs that add up at traditional banks.

What does it cost to be unbanked?

People without a bank account often pay more to cash checks (1% to 3% of the check's value at check-cashing stores) and to send money, compared to those with account access.

How do I avoid these costs?

With Común there's no monthly fee, no minimum balance required, and mobile check deposit is at no cost.

Frequently asked questions

How much do traditional banks charge for monthly maintenance?

Generally between $12 and $25 a month, though some banks waive it if you maintain a certain minimum balance.

What's a typical overdraft fee?

The industry average is approximately $34 per transaction.

How much does it cost to cash a check without a bank account?

Check-cashing stores charge between 1% and 3% of the check's value, with a $3-5 minimum.

Does Común charge a maintenance fee?

No, there's no monthly fee and no minimum balance required.

How can I avoid out-of-network ATM fees?

By using ATMs within your provider's network; with Común, AllPoint+ ATMs give you 3 free withdrawals a month.

Is it worth opening a bank account if I don't have much money?

Yes — many digital accounts, like Común's, don't require a minimum balance, so there's no barrier to entry.

The Global Impact of Mobile Money Transfer Apps

Money transfer apps have significantly altered the global remittance landscape, offering an accessible and efficient way for people to send money across borders. These apps have democratized financial services, especially in regions where traditional banking infrastructure is weak. By leveraging mobile technology, remittance services have become more inclusive, reaching remote and underserved communities.

Key Benefits

Accessibility: Money transfer apps are accessible to anyone with a smartphone and an internet connection, with no need for a physical bank.

Cost Efficiency: These apps often offer lower transaction fees compared to traditional remittance services, making it more affordable to send money internationally.

Speed: Transfers process almost instantly, reducing wait times for recipients.

Security: Advanced encryption methods and secure access provide robust protection against fraud and theft.

Impact of Mobile Money Apps on International Remittances

Mobile money apps have had a profound impact on international remittance flows. By simplifying the transfer process, these apps have increased the volume of remittances sent globally.

Accessibility and Financial Inclusion

One of mobile money apps' most significant contributions to international remittances is their role in promoting financial inclusion. Many remittance recipients in developing countries don't have access to traditional banking services. However, with the widespread adoption of mobile phones, even in remote areas, these people can now receive money directly into their mobile wallets. This not only eliminates the need for physical bank branches, but also provides a safe and convenient way for recipients to access their funds.

Reducing Transaction Costs

Another key impact of money apps on remittances is reducing transaction costs. Traditional remittance methods often involve high fees charged by banks and money transfer operators. These fees can eat into the funds sent, particularly for smaller amounts. Mobile money apps, on the other hand, generally offer lower fees, making it more affordable for migrants to send money to their families. By lowering the cost of remittances, these apps let migrants send larger amounts of money, increasing the total volume of remittances reaching recipient countries.

Speed and Convenience

Mobile money apps also offer unmatched speed and convenience compared to traditional remittance methods. Transactions can be initiated and completed in minutes, letting recipients access funds almost instantly. This is particularly beneficial in emergency situations, where quick access to funds can make a significant difference in a recipient's quality of life. Plus, the convenience of mobile money apps means migrants can send money anytime, from anywhere, without having to visit a physical location or work around bank or money transfer agent hours.

Empowering Recipients

Beyond the immediate financial benefits, mobile money apps empower recipients by giving them greater control over their finances. With funds deposited directly into their mobile wallets, recipients have the flexibility to use the money however they see fit, whether for daily expenses, savings, or investments. This financial autonomy can contribute to long-term economic stability and resilience, since recipients are better equipped to weather financial shocks and pursue opportunities for personal and economic growth.

More Stable Than Capital Flows

Remittances have proven to be more stable than other forms of financial inflows, like foreign direct investment (FDI) or portfolio investments.

Reasons for Stability

• Personal Nature: Remittances are usually sent for personal reasons, like supporting family members, making them less susceptible to economic fluctuations.
• Resilience: During economic downturns or crises, migrants often increase remittances to support their families, providing a steady flow of funds.

High Transaction Costs

Despite the advantages, high transaction costs remain a challenge in the remittance industry. Traditional services can charge fees ranging from 7% to 10% of the total amount sent, which is a significant burden for lower-income workers.

Efforts to Reduce Costs

• Regulatory Changes: Governments and international organizations are working to implement policies that reduce transaction fees.
• Technological Innovation: Advances in fintech, including blockchain and cryptocurrency, are helping reduce costs by cutting out intermediaries.

In short, the impact of mobile money apps on international remittances is multifaceted, spanning greater accessibility, lower transaction costs, increased speed and convenience, and recipient empowerment. As these apps continue to evolve and innovate, their role in facilitating cross-border transactions and promoting financial inclusion will likely become even more pronounced, further transforming the global remittance landscape for the better.

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What to Consider When Sending Remittances

Sending remittances through mobile money apps offers convenience and efficiency, but it's essential to consider several factors to ensure a smooth, cost-effective transaction.

1. Fees: Compare the fees charged by different money transfer apps to find the most affordable option. While some apps may offer low upfront fees, they may make up for it with less favorable exchange rates.
2. Exchange Rates: Exchange rates can vary significantly between different money transfer apps and fluctuate throughout the day. Look for apps that offer competitive exchange rates to maximize the amount the recipient receives.
3. Transfer Speed: Consider how quickly you need the money to reach the recipient. While many mobile money apps offer near-instant transfers in minutes, others may take longer, especially for transfers to remote areas or during periods of high transaction demand.
4. Security Features: Make sure the money transfer app you choose has robust security measures to protect your funds and personal information. Look for features like two-factor authentication, encryption protocols, and fraud detection systems.
5. Accessibility: Consider the app's accessibility for both sender and recipient. Choose an app that's easy to use and available in the languages spoken by both parties. Verify that the recipient can easily access the transferred funds, whether through a mobile wallet, bank account, or cash pickup location.
6. Customer Support: Evaluate the customer support options provided by the money transfer app. Look for apps that offer responsive customer service channels, like phone support, live chat, or email.
7. Reviews and Reputation: Research the money transfer app's reputation by reading reviews from other users and independent review platforms. Pay attention to feedback on reliability, transaction speed, customer service, and overall user experience. Choose a reputable app with a track record of safe, efficient money transfers to minimize the risk of issues.
8. Regulatory Compliance: Make sure the money transfer app complies with relevant regulations and legal requirements in both the sender's and recipient's countries. Verify that the app follows anti-money laundering (AML) and know-your-customer (KYC) procedures to prevent illicit financial activity.

Sending the Money

Sending money through mobile apps is a straightforward process, but understanding the steps can help ensure a successful transaction.

Steps to Send Money

• Choose an App: Select a reliable money transfer app based on your needs.
• Set Up an Account: Sign up and verify your account with the necessary ID documents.
• Enter Transfer Details: Enter the recipient's information and the amount to send.
• Review and Confirm: Verify the details and confirm the transaction.
• Notification: Both sender and recipient typically receive notifications once the transfer is complete.

By carefully considering these factors when sending remittances through mobile money apps, you can ensure a smooth, cost-effective transfer experience while providing vital support to your loved ones across borders.

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In the mobile remittance landscape, Común stands out as an emerging player, particularly serving the needs of the immigrant community in the United States¹. Recognizing the challenges immigrants face in accessing reliable financial services and building wealth in the U.S., Común has positioned itself as a solutions-oriented platform aimed at lowering barriers to entry and accelerating integration with the digital economy.

Let's Start With the Problem:

Living in the United States as a foreigner presents numerous challenges, made worse by a financial system that often overlooks immigrant communities' needs. Reliable financial services are essential for building wealth, yet millions of immigrants find themselves excluded from mainstream banking and financial opportunities.

Barriers to Entry:

• Documents: Immigrants are often less likely to have Social Security numbers (SSNs), a common requirement for accessing financial services.
• Language: Many financial institutions lack Spanish-language services, creating a communication barrier for Spanish-speaking immigrant customers.
• Cost: Financial services aimed at immigrants often come with exploitative pricing, further widening the economic gap.

Addressing the Structural Opportunity Gap:

Común recognizes the structural opportunity gap facing the immigrant community and aims to address it through innovative solutions tailored to their needs.

Común's Solution:

• Your Documents: Común is one of the only platforms that lets users apply with more than 100 Latin American IDs, removing the barrier posed by not having an SSN.
• Your Language: Común provides 100% bilingual customer service, with native Spanish speakers available 24/7 via chat, email, or phone, ensuring effective communication and support.
• Your Neighborhood: Común offers a network of thousands of locations for cash deposits and withdrawals, making financial transactions convenient and accessible for users.

Facts About Global Migration

Understanding the dynamics of global migration is essential to grasping the complexities of remittances and their impact on world economies. Here are key facts that shed light on the intricate relationship between migration and remittances:

• Global Migration Trends: Migration patterns have shifted over the past decade, with significant movements of people across regions and continents driven by factors like economic opportunity, conflict, and climate change.
• Top Remittance-Receiving Countries: Some countries receive the largest remittance inflows, often coinciding with regions facing economic challenges or political instability. Countries like India, China, and Mexico are among the top global remittance recipients.
• Top Remittance-Sending Countries: On the other hand, there are countries where most remittances originate, reflecting diaspora efforts to support family members and contribute to development in their countries of origin. The United States, Saudi Arabia, and the United Arab Emirates are prominent remittance-sending countries.
• Economic Impact of Remittances: Remittances play a crucial role in recipient countries' economies, contributing to GDP growth, poverty reduction, and increased household income. In many developing countries, remittances make up a significant share of national income.
• Cost of Sending Remittances: Despite their economic importance, sending remittances can be costly for migrants, with fees charged by money transfer operators and banks often eating into the funds sent. Efforts to reduce remittance costs are underway, aimed at maximizing benefits for senders and recipients.
• Remittance Growth Over Time: Global remittance volumes have been steadily increasing over the years, reflecting the growing number of migrants and the expansion of remittance corridors. This growth underscores the importance of remittances as a lifeline for millions of families worldwide.
• Migrant Contributions to Host Economies: Migrants don't just send money back to their home countries — they also contribute to their host countries' economies through labor participation, entrepreneurship, and consumer spending. Their contributions enrich cultural diversity and drive innovation and economic growth.
• Impact of Technology on Remittances: Technological advances, including the rise of mobile money apps and blockchain technology, have revolutionized the remittance industry, making transfers faster, cheaper, and more accessible. These innovations have empowered both migrants and recipients, letting them bypass traditional banking systems and intermediaries.
• Future Projections: Projections indicate continued growth in global migration and remittance flows, driven by demographic shifts, economic disparities, and geopolitical developments. Understanding these trends is essential for policymakers, financial institutions, and stakeholders to shape policies and initiatives that harness the positive impact of remittances while addressing challenges and barriers to access.

By recognizing the importance of migration and remittances, we can work toward building inclusive, sustainable financial systems that benefit individuals, families, and communities around the world.

Conclusion

In conclusion, money transfer apps have revolutionized global remittances, offering convenience, affordability, and accessibility. They close the gap between senders and recipients, empowering migrants and supporting families worldwide. As technology advances and regulations evolve, these apps will continue to shape the remittance landscape, fostering financial inclusion and economic growth. By embracing innovation and collaboration, we can harness the transformative power of mobile money apps to create a more equitable, prosperous global economy.

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Money transfer scams in 2026: how to identify and avoid them

Money transfer scams continue to affect thousands of families across the United States, especially immigrant communities that regularly send money to loved ones abroad. In recent years, scammers have become more sophisticated, using fake banking apps, social media impersonation, AI-generated voices, and emotional manipulation to steal money and personal information.

According to recent data from the Federal Trade Commission (FTC), consumers reported losing $15.9 billion to fraud in 2025, with impersonation scams remaining the most commonly reported types of fraud.

For Latino immigrants in the U.S., these scams can feel especially stressful because they often involve urgent family situations, language barriers, or financial pressure.

What are money transfer scams?

Money transfer scams are fraudulent schemes designed to convince someone to send money or share sensitive financial information. These scams may happen through phone calls, text messages, WhatsApp, social media, fake banking apps, email phishing, or online marketplaces.

Most common scams in 2026

Bank impersonation scams:

Scammers pretend to be your bank, sending messages that look official asking if you authorized a transaction. They then call claiming to represent the bank and instruct you to transfer funds to 'reverse' fraud.

Government impersonation scams:

Someone claims to be from the IRS, Social Security, or immigration and threatens consequences if you don't pay immediately.

Marketplace scams:

Scammers on platforms like Facebook Marketplace request payment through transfers. After funds are sent, the item may never arrive.

Overpayment scams:

A scammer claims to have 'accidentally' sent money and asks for it back. Their original payment may later be reversed or prove fraudulent.

Romance/friendship scams:

Someone develops an online relationship and then asks for money for an 'emergency'.

AI-generated voice scams:

In 2026, scammers use AI to clone family members' voices and create false urgency by claiming to be in an emergency.

Red flags: how to recognize a scam

• They ask you to send money immediately or you'll 'lose' something
• They pressure you to keep the transaction secret
• The offer seems too good to be true
• They ask you to pay with hard-to-trace methods (gift cards, wire transfers, crypto)
• The phone number or email doesn't match the official one
• They unexpectedly ask you to confirm personal information

What to do if you were scammed

• Contact your financial institution immediately
• Report to the FTC at reportfraud.ftc.gov
• Save all evidence: screenshots, messages, phone numbers
• Change passwords and enable two-factor authentication

How Común protects your money

Común uses encryption and identity verification to protect transactions. If you receive a suspicious message claiming to be from Común, contact official support directly through the app or at ayuda@comun.app. Común will never ask for your password or verification code via text message.

FAQ

How do I know if a call is really from my bank?

Hang up and call the official number on the back of your card or the bank's official website. Legitimate banks will never ask you to transfer money to 'protect it'.

Can I get my money back if I was scammed?

It depends on the transfer method and how quickly you report. P2P transfers and wire transfers are difficult to reverse. Report immediately to your financial institution.

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

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How Does an Overdraft Happen on a Bank Account?

Overdrafts happen for various reasons. Sometimes it's an accidental oversight — maybe you forgot about an automatic payment or miscalculated your available balance. Common reasons include unexpected expenses, delayed direct deposits, or simply losing track of your spending. Understanding these causes can help you avoid overdrafts and keep a positive account balance.

What Are the Consequences of Overdrafts and Overdraft Fees?

Overdrafts can be more than just a hassle — they often come with substantial overdraft fees. Financial institutions typically charge an overdraft fee for each transaction that overdraws your account. Some banks only charge overdraft fees if a customer overdraws by a certain amount, or provide grace periods where no fees are charged if the customer replenishes their account quickly after an overdraft. These fees can add up fast if you're not careful.

Additionally, overdrafts can disrupt your financial health. They can lead to a negative balance, making it harder to cover transactions for essential needs and future purchases. If you overdraft frequently, it could even affect your credit score, which could impact your ability to get loans or other financial products in the future. Frequent overdrafts can also result in multiple overdraft fees, further compounding your finances.

Tips to Avoid Overdrafts

Avoiding overdrafts is about being proactive. Here are some practical tips:

Keep an Eye on Your Spending: Keep a close watch on your account balance and transactions. Use online banking or mobile deposit apps to monitor your spending in real time.

Set Up Low-Balance Alerts: Most banks offer low-balance alerts that notify you when your available funds are low. Setting up these alerts can give you a heads-up before an overdraft happens.

Keep a Cushion: Try to keep a cushion of extra funds in your checking account. Even a small cushion can prevent overdrafts caused by unexpected expenses.

Link to Savings: Consider linking your checking account to a savings account. This way, if your checking account runs out of funds, money can be automatically transferred from your savings to cover the shortfall.

Monitor Pending Transactions: Be aware of any pending transactions that aren't yet reflected in your account balance. This includes debit card transactions and automated payments. Making sure you have enough money in your account to cover pending transactions can help avoid overdrafts.

Set Up Direct Deposit: Setting up direct deposit can help maintain a minimum balance in your account, potentially avoiding monthly maintenance fees and other charges. Direct deposit can also be an option for waiving certain fees offered by banks.

Learn how to manage your bank account

Managing an Overdraft if It Happens

Sometimes, despite your best efforts, an overdraft can happen. Here's what to do if it happens to you:

Act Quickly: As soon as you realize you've overdrafted, deposit or transfer money into your account to cover the negative balance. Having enough money in your account to cover transactions is crucial to avoiding further overdrafts. This can minimize fees and prevent additional transactions from causing more overdrafts.

Contact Your Bank: Reach out to your financial institution's customer service. They may waive the overdraft fee if it's your first time or if you have a good banking history.

Review Your Spending: Look at what caused the overdraft and adjust your budget to avoid repeating the mistake. Consider setting up stricter monitoring or additional alerts to stay on top of your account balances.

Pay Off Overdrafts Promptly: Make sure any overdrafts and associated fees are paid off as soon as possible to avoid additional fees or returned transactions.

Scams That Can Result in Overdrafts

Beyond the usual causes of overdrafts, like accidental spending or unexpected expenses, there are numerous scams that can lead to overdraft situations. These scams often involve fraudulent checks and deceptive tactics that drain your account, resulting in negative balances and multiple overdraft fees. Here are some common scams to be aware of to protect your financial health.

Online Purchase Scams: In online purchase scams, scammers pose as legitimate buyers or sellers in online marketplaces. A scammer might send a check as payment for an item you're selling, which then bounces after you've shipped the item. Alternatively, you might receive a check for a purchase you made, only to find out it's fake, leading to an overdraft when the funds are withdrawn from your account.

Phishing Scams: Phishing scams involve scammers sending emails, texts, or phone calls posing as a bank or other trusted entity. They trick you into providing your account information, which they then use to withdraw funds or write fraudulent checks. This can lead to overdrafts if your account is drained without your knowledge.

Charity Scams: Scammers often exploit goodwill by posing as charitable organizations, especially during times of crisis. They send checks as a "refund" for a previous donation or as an overpayment, asking you to return part of the money. The check bounces, and you end up with an overdraft and lost funds.

Advance Fee Scams: In advance fee scams, scammers promise large sums of money, like lottery winnings or an inheritance, in exchange for a smaller upfront fee. They send a check to cover the fee, which you deposit and then send back the "fee." The check bounces, causing an overdraft and a loss of the amount sent.

Fraudulent Refund Scams: Scammers contact you claiming to be from a company you recently did business with, claiming there was an overpayment or billing error. They send a check and ask for a partial refund. When the check bounces, you're left with an overdraft and out-of-pocket expenses.

Romance Scams: In romance scams, scammers build a fake relationship with their victims, often online. Eventually, they ask for money, sometimes sending a check first to "prove" they're legitimate. When the check bounces, the victim is left with an overdraft and the emotional and financial fallout of the scam.

Contractor Scams: Fake contractors offer services like home repairs or improvements. They ask for an upfront payment, often sending a check as partial payment. Once the check bounces, you're left with an overdraft and no completed work.

Job Offer Scams: Scammers offer fake jobs and send a check for equipment or initial expenses, asking you to send back a portion. When the check bounces, you're left with an overdraft and no job.

Travel Scams: In travel scams, scammers offer discounted trips or vacation packages. They send a check for supposed travel expenses, asking you to send part of it back or to another party. The check bounces, leading to an overdraft and no vacation.

Using Overdraft Protection Services

Overdraft protection generally involves linking your checking account to another account, like a linked savings account or a line of credit. If you overdraft your checking account, funds are automatically transferred from the linked account to cover the transaction.

The main advantage is avoiding the high fees associated with overdrafts. However, there may be a transfer fee for the overdraft protection itself, and it can encourage spending beyond your means if not used responsibly. Not all overdraft protection plans are the same. Carefully review the terms and conditions, and choose one that fits your habits and financial needs. It's important to understand the overdraft coverage options provided by your financial institution. Look for services that offer coverage for debit card purchases, ATM transactions, and other charges associated with insufficient funds. Financial institutions play a crucial role in offering these services.

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Using the right tools can make managing your finances much easier and help you avoid the stress of overdrafts. Común.app is designed to help you stay on top of your finances with features that can help prevent overdrafts.

• Real-Time Balance Monitoring: Común.app provides real-time updates on your account balances, ensuring you always know how much money you have available.
• Low-Balance Alerts: Set up low-balance alerts to get notified when your funds are running low, helping you avoid overdrafts before they happen.
• Automatic Transfers: Link your checking account to your savings account within Común.app to enable automatic transfers. This way, if your checking account balance gets too low, funds can be transferred from your savings to cover transactions.
• Spending Insights: Común.app offers insights into your spending habits, helping you identify areas where you might be overspending and need to cut back to maintain a positive balance.

By integrating Común.app into your financial routine, you can take proactive steps to manage your money effectively, avoid overdraft fees, and keep your account in good standing.

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Conclusion

Overdrafts on bank accounts can be a significant financial burden, but with the right knowledge and tools, you can effectively manage and avoid them. Understanding what overdrafts are and their potential consequences is the first step toward proactive financial management. Even if an overdraft happens, acting quickly, contacting your bank, and reviewing your spending habits can help minimize the impact and prevent future issues. Additionally, being aware of various scams that can lead to overdrafts, like online purchase scams, phishing scams, and advance fee scams, can protect you from falling victim to these fraudulent schemes.

Using tools like Común can further simplify your financial management. With features like real-time balance monitoring, low-balance alerts, automatic transfers, and spending insights, Común.app helps you stay on top of your finances and avoid the stress of overdrafts. By incorporating these strategies and resources into your financial routine, you can maintain a healthy account balance, avoid unnecessary fees, and ensure your financial well-being.

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Conclusión

Los sobregiros en cuentas bancarias pueden ser una carga financiera significativa, pero con el conocimiento y las herramientas adecuadas, puedes gestionarlos y evitarlos eficazmente. Entender qué son los sobregiros y sus posibles consecuencias es el primer paso hacia la gestión financiera proactiva. Incluso si ocurre un sobregiro, actuar rápidamente, comunicarte con tu banco y revisar tus hábitos de gasto puede ayudarte a minimizar el impacto y prevenir problemas futuros. Además, ser consciente de varias estafas que pueden llevar a sobregiros, como estafas de compras en línea, estafas de phishing y estafas de tarifas por adelantado, puede protegerte de caer víctima de estos esquemas fraudulentos.

Usar herramientas como Común puede simplificar aún más tu gestión financiera. Con características como monitoreo de saldo en tiempo real, alertas de saldo bajo, transferencias automáticas y perspectivas de gastos, Común.app te ayuda a mantenerte al tanto de tus finanzas y evitar el estrés de los sobregiros. Al integrar estas estrategias y recursos en tu rutina financiera, puedes mantener un saldo saludable en tu cuenta, evitar tarifas innecesarias y asegurar tu bienestar financiero.

For immigrants in the United States, finding a legal way to remain in the country indefinitely can be a long and confusing process. That’s why it’s important to know all the alternatives to help pave the way toward lawful permanent residence.

Getting a sponsor is a path that can help you regularize your immigration status in the United States. A sponsor is a person who assumes legal and financial responsibility for someone who is in the process of regularizing their documents in the country.

Below, we explain in detail what a sponsor is, the income table to sponsor a family member in 2025, and all the forms and documents needed to formalize this process.

What does it mean to be a sponsor in the United States?

In simple terms, a sponsor is a person who takes on legal and financial sponsorship of someone who is in the process of obtaining an immigrant visa or a Green Card.

It’s a measure by which the U.S. Government, through USCIS, ensures the sponsored person will not become a public charge, since sponsorship entails the sponsor’s financial and legal responsibility.

During this process, some terms can be confused and are worth clarifying—namely sponsor and petitioner.

• Petitioner: the person who files the initial application with USCIS.

• Sponsor: the person who provides financial and legal support for the immigrant. If the petitioner doesn’t meet the requirements, a joint sponsor can be added.

On the other hand, there are two relevant forms you should know during this process.

• Form I-864 (Affidavit of Support):

This form is generally used for permanent resident visas, employment-based visas, or family-based Green Cards for immediate relatives.

• Form I-134 (Declaration of Financial Support):

This form is required for temporary or nonimmigrant visas—for example, a tourist or fiancé(e) visa.

4 requirements to be a sponsor in the U.S.

These are the requirements your sponsor must meet to proceed:

• Be a U.S. citizen or lawful permanent resident.

• Be at least 18 years old.

• Live in the United States (have a domicile there).

• Meet the minimum income requirements.

Regarding income requirements, sponsors must meet the minimums set by the Department of Health and Human Services (HHS), which requires household income above 125% of the federal poverty guideline.

Household size includes the sponsor, their spouse, dependent children, and the sponsored immigrant.

Below is a comparative table with the minimum figures by household size.

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If the sponsor does not meet these minimum incomes, you can turn to a joint sponsor or a household member.

It’s also important to consider some special cases.

• Sponsors with TPS (Temporary Protected Status): cannot be sponsors because they are not permanent residents.

• Humanitarian parole: not eligible to be sponsors unless they obtain permanent residence.

• Armed Forces: U.S. citizens serving in the Armed Forces have more flexible income minimums to sponsor immediate relatives.

What are a sponsor’s responsibilities and how long do they last?

To formalize sponsorship, the sponsor must sign an affidavit committing to provide legal and financial support.

Sponsor’s legal obligations

By signing the affidavit of support, the sponsor commits to providing the financial resources necessary so the sponsored person does not become a public charge.

If the immigrant receives public assistance, such as Medicaid, the U.S. Government may require the sponsor to reimburse those funds.

Duration of sponsorship

Sponsorship has no fixed duration, but it can end when:

• The immigrant adjusts status and obtains permanent residence.

• The immigrant accrues 40 quarters of work and proves it to Social Security.

• The immigrant permanently leaves the country.

Cases where sponsorship does not end

In marriage-based sponsorship, divorce does not terminate the sponsor’s obligations. The same applies if the parties stop living in the same household.

5 documents and forms you need to be a sponsor

Finally, it’s essential to know the documents needed to formalize sponsorship and to assess your sponsor’s eligibility.

Form I-864 or I-134, as applicable

This form serves as an affidavit in which the sponsor commits to meeting their economic and legal obligations to the sponsored person.

There is no fee to file these forms. Unless filed from outside the U.S. through the National Visa Center, in which case Form I-864 costs $120.

Proof of citizenship or permanent residence

The sponsor must present documents proving U.S. citizenship or lawful permanent residence—for example, a passport, Green Card copy, or naturalization certificate.

Tax returns or proof of income

You must provide the most recent annual tax return (Form 1040) and proof of income.

Employer letter, if needed

An employer letter may also be required to confirm the sponsor’s position, salary, and length of employment.

Proof of U.S. domicile

The sponsor must show a U.S. domicile and residence there. Deeds or utility bills can serve as proof.

Organize your finances in the U.S. with Común

Throughout this article, we reviewed in detail what a sponsor is—a person who assumes legal and financial responsibility for an immigrant—as well as the minimum income table and required documents.

Even with a sponsor’s support, it’s important to continue legalizing your situation in the country and to obtain steady work and income.

To that end, it’s vital to manage money well and have fair financial services suited to you.

Discover all the benefits of Común, the financial platform created for immigrants!

• Open your account with qualifying official ID from your country of origin.

• Use the mobile app available in Spanish, transparent and easy to understand.

• Send remittances to LATAM countries with clear and competitive fees.

Open your Común account today and organize your personal finances with clarity and security.

Frequently Asked Questions (FAQ)

If you still have questions, consult our FAQs.

Can I be a sponsor if I don’t have sufficient income?

If your income does not reach 125% of the Poverty Guidelines, you can look for a joint sponsor who must meet the same requirements—per the Federal Poverty Guidelines published annually by the Department of Health and Human Services (HHS).

What happens if the immigrant receives public benefits?

The primary sponsor and joint sponsor are responsible for reimbursing the Government for any public assistance the sponsored immigrant receives.

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

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

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.

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