What Today's Banking Customers Want

Today's banking consumers are no longer satisfied with just basic financial transactions. They want seamless digital experiences, personalized services, and round-the-clock accessibility. With the spread of smartphones and internet connectivity, customers expect banking services to be available at their fingertips, anytime and anywhere. They also demand transparency, security, and efficiency in every interaction with their financial institutions.

Understanding and meeting these changing needs is crucial for banks to attract and retain new customers in an increasingly competitive landscape.

Better Experiences Are Essential for Deposit Growth and Customer Loyalty

In an era where switching banks is easier than ever, delivering a superior customer experience has become essential for deposit growth and maintaining customer loyalty. Banks that prioritize user-friendly interfaces, intuitive mobile apps, and responsive customer support are more likely to succeed in building solutions integrated with customer data. Beyond the transactional aspect, customers value proactive financial advice, personalized product recommendations, and tailored communication.

By investing in emerging technologies that improve customer experiences, many banks can build stronger relationships with their customers and position themselves as trusted financial organizations for the long term.

Technological and Industry Shifts

In banking, the traditional advantages that once set institutions apart are gradually eroding. With the rise of fintech startups and tech giants entering the financial services space, banks face unprecedented competition. Legacy systems and processes that used to be barriers to entry are now being disrupted by innovative technologies and agile business models.

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Banking Is Losing Its Traditional Advantages

Historically, banks held monopolies on financial services due to their physical presence, regulatory barriers, and established customer trust. However, the arrival of digital banking and the spread of online-only banks have challenged this status quo. Traditional advantages like branch networks and long-standing reputations are no longer as significant in a digital era where convenience and efficiency come first.

Technological Advances Shaping the Banking Industry

Technological advances are driving profound change in the banking industry, redefining how financial services are delivered and consumed. From artificial intelligence (AI) and machine learning to blockchain and cloud computing, banks are leveraging cutting-edge technologies to streamline operations, improve security, and improve customer experiences.

AI and Data Advances Accelerating Transformation Possibilities

AI and data analytics are revolutionizing banking by letting institutions gain deeper insight into customer behavior, automate repetitive tasks, and personalize offers at scale. Chatbots powered by natural language processing (NLP) provide instant customer support, while predictive analytics algorithms help identify trends and proactively mitigate risk.

Seamless Technology and Platform Integration Is a Top Priority

Seamless technology and platform integration is essential for banks to deliver cohesive, omnichannel experiences to their customers. Whether through mobile banking apps, online banking portals, or in-branch interactions, customers expect consistent, intuitive interfaces that smoothly meet their financial needs across various touchpoints.

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Embracing Responsible AI (GenAI)

As banks adopt AI and automation, it's crucial to do so responsibly, considering ethical implications and potential biases. Responsible AI, often called GenAI, involves ensuring fairness, transparency, and accountability in AI-driven decision-making processes. By adopting ethical AI frameworks and governance principles, banks can build trust with customers and mitigate risks associated with AI deployment.

Innovations in AI and data analysis are driving transformative possibilities, while seamless technology and platform integration is now a top priority. Banks must also embrace responsible Generative AI (GenAI) to stay ahead.

Banking as a Service (BaaS)

As traditional banking models evolve, Banking as a Service (BaaS) is emerging as a key trend reshaping the financial landscape. This section explores the key aspects of BaaS, from emerging industry trends to competitive arenas and business models, offering insight into the future of banking.

Emerging Trends in the BaaS Banking Industry

• Collaboration Over Competition: Traditional banks are increasingly partnering with fintech startups and third-party providers to offer specialized financial services. This collaborative approach lets banks leverage innovative technologies and expand their service offerings without needing extensive infrastructure investment.
• API-Driven Ecosystems: Application Programming Interfaces (APIs) play a central role in BaaS, enabling seamless integration of banking services into third-party apps and platforms. Open banking initiatives around the world are driving the adoption of standardized APIs, fostering a more interconnected financial ecosystem.
• Platformization of Banking: Banking services are shifting from product-centric models to platform-centric models, where banks act as enablers of financial transactions rather than just service providers. Platforms offer a diverse range of financial products and services curated from multiple providers, giving customers greater choice and flexibility.

Competitive Arenas and Emerging Business Models in Banking

• Digital Challenger Banks: Digital-only banks, or challenger banks, are disrupting the traditional banking landscape with their agile operations, innovative products, and customer-first approach. These agile startups leverage technology to deliver superior user experiences and challenge incumbents in key market segments. Such is the case with the Común app, which offers financial services for immigrants living in the U.S.
• Embedded Finance: Embedded finance refers to integrating financial services into non-financial apps, like e-commerce platforms, ride-share apps, and social networks. By embedding banking functionality directly into everyday activities, financial transactions become seamless and frictionless for users.

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A Look at the Bigger Picture: Everyday Banking

• Mobile-First Solutions: Everyday banking is increasingly mobile-centric, with customers preferring the convenience of managing their finances on the go. Mobile banking apps offer a wide range of features, including account management, bill payments, peer-to-peer transfers, and financial insights, meeting customers' diverse needs.
• Personalization and Predictive Analytics: Banks are leveraging data analytics and AI algorithms to personalize their offerings and anticipate customer needs. By analyzing transactional data and behavioral patterns, banks can deliver personalized product recommendations, tailored financial advice, and proactive alerts, improving customer engagement and satisfaction.

Discover the Future of Banking: Embrace BaaS Innovations Today for Financial Evolution and Empowerment

• Enhanced Customer Experiences: BaaS lets banks deliver enhanced customer experiences by leveraging innovative technologies and partnerships. From frictionless onboarding experiences to personalized financial solutions, BaaS empowers customers to reach their financial goals more effectively.
• Financial Inclusion and Accessibility: BaaS has the potential to drive financial inclusion by extending banking services to underserved and unbanked populations. Through partnerships with fintechs and leveraging digital channels, banks can reach previously inaccessible markets and provide essential financial services to those who need them.
• Agility and Innovation: Embracing BaaS lets banks innovate quickly and adapt to changing market dynamics. By leveraging outside expertise and resources, banks can accelerate the development and rollout of new products and services, stay ahead of the competition, and meet changing customer expectations.

Everyday banking remains the biggest arena, and the future of banking will see financial evolution and empowerment through BaaS innovations.

Regulatory and Compliance Considerations

This section explores the imperative nature of investing in regulatory compliance, the importance of anticipating regulatory action, and the impact of regulatory developments on BaaS. It also discusses predictions for the future of BaaS in light of these regulatory considerations.

Investing in Regulatory Compliance Is Imperative

• Compliance Frameworks: Banks and BaaS providers must establish robust compliance frameworks to adhere to regulatory requirements and industry standards. This includes implementing Know Your Customer (KYC) procedures, anti-money laundering (AML) measures, and data protection protocols to safeguard customer information and mitigate financial risks.
• Risk Management: Investing in risk management practices is essential to navigate regulatory complexities and protect against potential threats. By conducting regular risk assessments and implementing risk mitigation strategies, banks can ensure regulatory compliance while maintaining operational resilience.

Anticipating Regulatory Action

• Proactive Compliance Measures: Anticipating regulatory action lets banks stay ahead of compliance requirements and mitigate regulatory risks effectively. By closely monitoring regulatory developments, engaging with regulatory authorities, and participating in industry forums, banks can proactively address emerging regulatory challenges and adapt their compliance strategies accordingly.
• Regulatory Engagement: Establishing open communication channels with regulatory authorities fosters collaboration and transparency, letting banks address regulatory concerns and seek guidance on compliance matters. By actively engaging with regulators, banks can demonstrate their commitment to regulatory compliance and build trust within the regulatory community.

Regulatory Developments Impacting BaaS

• Global Regulatory Landscape: Regulatory developments, like open banking initiatives and data protection regulations, have a significant impact on the BaaS ecosystem. Financial service providers must stay on top of regulatory changes across different jurisdictions and adapt their operations accordingly to ensure compliance with local laws and regulations.
• Compliance Challenges: Regulatory requirements related to data privacy, cybersecurity, and consumer protection pose significant challenges for BaaS providers. Meeting complex regulatory frameworks requires substantial investment in resources and expertise, demanding a proactive approach to effectively address regulatory concerns.

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Predictions for the Future of BaaS

• Regulatory Evolution: The future of BaaS is expected to be shaped by ongoing regulatory evolution, with regulators adapting existing frameworks to address emerging risks and challenges. Predictions suggest regulators will focus on improving consumer protection, promoting market competition, and fostering innovation within the BaaS ecosystem.
• Regulatory Harmonization: As the BaaS landscape continues to evolve, there's a growing need for regulatory harmonization across different jurisdictions to facilitate cross-border operations and ensure a level playing field for market participants. Predictions indicate regulators will collaborate to standardize regulatory requirements and promote interoperability within the BaaS ecosystem.
• Compliance Innovation: Innovations in regulatory technology (RegTech) are expected to play a significant role in driving compliance innovation within the BaaS industry. Predictions suggest BaaS providers will leverage RegTech solutions to automate compliance processes, improve regulatory reporting capabilities, and enhance overall regulatory efficiency.

Investing in regulatory compliance is crucial, since regulatory actions and developments significantly impact BaaS. Predicting future regulatory landscapes helps institutions stay prepared and compliant.

Conclusion

The future of banking services is marked by technological innovation, shifting customer preferences, and evolving regulations. Banking as a Service (BaaS) is reshaping the industry, offering new avenues for collaboration and innovation. Embracing BaaS today unlocks new opportunities to improve customer experiences and drive economic growth.

Regulatory compliance is crucial. Banks must invest in compliance frameworks and anticipate regulatory changes to mitigate risks effectively. Looking ahead, success in banking will depend on agility, innovation, and customer focus. By staying on top of trends, leveraging technology, and prioritizing compliance, banks can thrive in the digital era.

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How to deposit money into someone else's bank account: 5 updated methods (2026)

In 2026, there are more ways than ever to send money to another bank account, but each option works differently. Some methods require a routing and account number, while others only need a phone number, email, or QR code.

5 ways of depositing money into someone else's bank account

Bank branch deposits

One of the simplest ways to deposit money into someone else's account is by visiting their bank branch directly. To deposit money at a branch, you generally need: the recipient's full name, the recipient's account number, and the cash or check you want to deposit.

ACH bank transfer

ACH transfers are electronic bank-to-bank transfers through the Automated Clearing House network. To send an ACH transfer to another person's account, you need: the recipient's bank routing number and account number.

P2P payment apps

Peer-to-peer payment apps like Común's Pay, Venmo, Cash App, and Zelle allow you to send money quickly to another person using just a phone number, email, username, or QR code.

Wire transfer

Wire transfers are electronic bank-to-bank transfers that complete quickly, usually the same business day for domestic transfers. They are typically used for large amounts or urgent payments.

Check deposit

You can also write a personal check to another person. This option is slower than digital methods but can be useful for documented or scheduled payments.

FAQ

Can I deposit cash into someone else's bank account?

It depends on the bank. Some banks allow cash deposits into third-party accounts at a branch, while others may restrict it due to fraud prevention policies.

What is the fastest way to send money to another account?

P2P apps like Común's Pay, Venmo, and Zelle are generally the fastest for everyday transfers. Wire transfers are faster for large amounts.

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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Remittances are money transfers an immigrant sends to family back home. With Común, sending a remittance to Latin America costs as little as $2.99, with a competitive exchange rate and delivery within minutes in most cases.

Living and working abroad? Remittances might be for you if you want to send money to family members, friends, or other beneficiaries in another country.

Remittance is money transfers from one person to another, usually across borders. They are most commonly sent by immigrants who send a portion of their income to support their families back home. However, remittances can also be personal gifts, financial support, or payments between relatives or friends who maintain social or economic ties despite the distance.

Do you know the difference between a remittance and a bank transfer payment?

Remittances can be money transfers, however what is commonly understood as remittances are voluntary person-to-person transfers, usually between family members. For example: a worker in Texas sending money to their parents in Mexico, a nurse in Florida sending money to her siblings in Honduras, or a student helping their grandparents in Guatemala. Bank transfers on the other hand, can include payments between companies, international trade payments, foreign direct investment, loans between corporations, or government aid.

In summary, remittances are personal, cross-border, person-to-person transfers.

How can you send remittances from the United States to Latin American countries?

Today there are more options than ever to send money to Latin America from the U.S. The process is usually very simple:

#1 Choose a remittance provider

Your remittance service provider can be a financial mobile application, a traditional bank like Wells Fargo, a specialized money transfer service like Western Union or MoneyGram, or a fintech company like Remitly.

#2 Select the destination country and delivery method

Each company offers different delivery options depending on their services and local partnerships. Delivery options vary in cost depending on the provider and the urgency.

#3 Enter the amount and confirm the exchange rate and fee

The amount received by the recipient varies by the exchange rate used by the provider and the service fee they charge. Some companies might charge no fees, but their business model relies on the exchange rate markup.

#4 Pay for the remittance

With so many options available, remittances can be paid with various methods including:

• Bank account (ACH).
• Debit card.
• Credit card (often the most expensive).
• Cash
  
  

#5 The recipient receives the money

It can take minutes to days for the recipient to receive the funds, depending on how the funds are received or by the type of remittance provider used to send the remittance. 

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How much does it cost to send remittances from the United States?

The total cost depends on two main factors:

1. Service fees

This is the fee the provider charges to send the remittance. It can range from $0 to over $20 USD per transaction depending on the provider and payment method used.

• Bank account: typically the cheapest.
• Debit card: mid-range cost.
• Credit card: most expensive (fees + potential interest)
  
  

2. Exchange rate costs

Some companies have different  exchange rates, making the remittance more expensive even if the service fee is advertised as “$0.” Sometimes the fee for the service provider is included within the added margins in exchange rates. 

3. Other possible additional costs

These may include cash pickup fees, limits for high transaction amounts, or fees charged by participating banks. It is important to understand the fees in remittance costs to be able to manage your funds in a way that makes sense to you.  

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What should you consider before sending money abroad from the United States?

To choose the best option, you can always consider:

1. Total costs (fee + exchange rate). Sometimes comparing only the fixed fee is not enough to fully understand the cost of a remittance or transfer.
   
   
2. Delivery time. If the recipient needs the money the same day, it could be best to choose an quick service.
   
   
3. Delivery method. Cash pickup can be useful if the recipient doesn’t have a bank account. Other options include bank deposit or digital wallets, which can be practical and low-cost.
   
   
4. Convenience for the sender. If you send money frequently, it is recommended to evaluate apps that allow saved recipients, automatic payments, recurring transfers, or exchange-rate alerts or options that adjust and serve your needs.
   
   
5. Limits and requirements. Not all money transfer service providers are the same. Some services require government-issued identification to provide their services, while others require a U.S. bank account and, in some cases, proof of identity (some providers accept foreign passports as proof of identity to send remittances if the sender can prove residency in the United States) for large transfers.
   
   

What Companies Offer Remittance Services from the United States?

In the U.S., there are several types of companies offering remittance services:

Traditional money transfer companies, for example: Western Union, MoneyGram, and Ria Money Transfer. These companies have physical branches in many locations. Fees could be higher than alternatives and the exchange rates can be less competitive.

Traditional banks: However, not all banks provide this service, but institutions like Bank of America and Wells Fargo allow international transfers through online banking or in-branch. However, it is important to consider that the fees can reach up to $60 USD depending on the bank, and transfers can take up to 5 business days. For this option, a bank account with the institution is needed or cash transfers are done directly at a branch.

Digital first companies (apps): Examples include Remitly, Wise, WorldRemit, and Xoom (from PayPal). These companies can offer more competitive pricing and faster transfers. These options are presented as an alternative to traditional banks or Western Union. Comun is one of these platforms, combining a fintech experience with extra benefits like a digital account and an easy-to-use app available in Spanish.

Convenience stores: For example, Walmart offers in-person remittance services. For example companies like Comun can also offer services like cash funding in retails or ATM locations. With a Comun open account you can deposit cash at one of over 90,000 retail locations (Walmart, 7-Eleven, Walgreens, and more)  and then complete the remittances conveniently from your app. 

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What do I need to send remittances from the United States to Latin American countries?

Requirements vary by provider and they depend on:

-How the remittance is sent, and
-How the remittance is received.

For example, if sending money for cash pickup, the most important information is the recipient’s full legal name as it appears on their official ID, since they’ll potentially need to present it to pick up the money.

For a bank-to-bank international transfer, the essential information includes the bank details for the receiving account.

Traditional banks and companies like Western Union generally require:

• Recipient’s full name.
• Recipient’s account number.
• SWIFT code.
• Receiving country.
• Amount and currency
  
  

How can you send remittances using Comun? 

Sending a remittance with Comun is very simple. You have two options at the palm of your hand, you can send it through the app or via WhatsApp. Here’s a detailed step by step on how to do it:

Through the Comun App

1. Open your Comun app.
2. Select “Transfer.”
3. Select “International.”
4. Under “How do you want to send your money?”, choose “Through the app.”
5. You’ll see the current exchange rate.
6. Select an existing recipient or add a new one.

*To add a recipient, you’ll need: full name as on their ID, phone number, and—if sending a bank transfer—their bank details.

7. Confirm the recipient’s information.
8. Choose the transfer method (bank deposit or cash pickup; options vary by country).
9. Enter the sender’s ID type and ID number.
10. Confirm transfer details.
11. Enter the amount (the calculator shows the amount the recipient will receive in local currency and the transfer fee).
12. Confirm the transaction.
    And that’s it—your remittance is sent!

Through Comun’s WhatsApp

1. Start from our website (by selecting “Send Money”), which will show the WhatsApp option — or.
2. From the app, select “Transfer.”
3. Select “International.”
4. Choose “Via WhatsApp.”
5. Follow the conversation flow.
6. Choose “Send money.”
7. Confirm the country.
8. Enter the amount.
9. You’ll receive a confirmation message showing the amount to be received in local currency.
10. Choose the delivery method.
11. Provide the recipient’s details: full name, ID type, ID number, and bank account (if applicable).
12. Confirm your remittance.
13. Verify your identity through the verification steps.
    And you’re done—your remittance is sent!

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Best Practices for Sending Remittances

To make sure your get the best out of your hard-earned money, it is recommended to keep some good practices in mind:

1. Verify the exchange-rate margin

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Ideally, choose a provider that uses an exchange rate as close as possible to the real market rate as this impacts the actual amount your recipient will receive. Understanding transaction costs can help make better financial decisions for your needs. 

2. Look for transparent, fixed fees
Comparing fees can be confusing because many services use variable pricing based on multiple factors. Ideally it is recommended to choose a provider that offers fixed fees and transparent pricing.

3. Consider timing and holidays in both countries

Keep in mind that transfers may be delayed during weekends or holidays in either country, so processing times may be slower than on regular business days.

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What exactly is a remittance?

It's money a person sends from the country where they work back to their home country, typically to support family.

How do I send a remittance with Común?

In the app, select "Send a remittance," choose the destination country and delivery method, add the recipient, and confirm the amount and fee before sending.

Which countries can I send money to with Común?

Común supports remittances to Mexico and other Latin American countries; check the full list of available countries in the app.

Frequently asked questions

What's the difference between a remittance and a regular bank transfer?

A remittance is specifically designed for international transfers to family, usually with delivery methods like cash pickup or deposit to an account in the destination country.

How much does it cost to send a remittance with Común?

Starting at $2.99 per transfer, with your first transfer at no cost.

Do I need a Común account to send remittances?

Yes, remittances are sent from your Común account inside the app.

How long does a remittance take to arrive?

Most transfers arrive within minutes, depending on the country and delivery method.

Can I send remittances in cash, or only to a bank account?

Both options exist depending on the country; in Mexico, for example, you can use cash pickup at locations like Elektra or Oxxo.

Is it safe to send remittances through an app?

Común works with a licensed remittance provider and shows the full exchange rate before you confirm each transfer.

What is cashback and how does it work? A 2026 Guide

Cashback is a rewards system that gives you back a percentage of the money you spend on eligible purchases. In simple terms, when you buy something using certain credit cards, debit cards, apps, or rewards programs, you may get a percentage of your money back on purchases, though it is usually credited to your account rather than handed over as physical cash.

If you recently moved to the United States or are learning how the financial system works, you may have heard the term 'cashback' while shopping at places like Walmart, Target, gas stations, supermarkets, or online stores.

For many people, cashback can become a practical tool to manage everyday expenses such as groceries, transportation, gas, and household purchases. While the amounts may seem small at first, they can add up over time when used consistently and responsibly.

What is cashback?

Cashback is a type of financial reward that returns a percentage of your purchase after you spend money with a participating payment method or rewards platform.

For example:

• If you spend $100 at the supermarket using a card that offers 2% cashback, you may receive $2 back
• If a cashback app offers 5% cashback at a participating gas station and you spend $60 on fuel, you may receive $3 back

Unlike traditional discounts, cashback usually happens after the purchase is completed. The Consumer Financial Protection Bureau (CFPB) explains that cashback rewards are commonly offered through credit cards and loyalty programs as an incentive for spending.

How does cashback work?

Cashback programs generally follow a simple process:

• You make an eligible cashback purchase using the participating card, app, or rewards account
• The transaction is recorded by the provider
• A percentage of that purchase is returned to you as cashback

The reward may appear as:

• Statement credit
• Bank deposit
• Gift card
• Rewards balance
• Redeemable points
• Store credit

Some cashback rewards appear within a few days, while others may take an entire billing cycle or longer to process. There are often minimum redemption thresholds before you can claim your cashback. Certain programs may include expiration dates. It is also important to understand that not every purchase qualifies for cashback.

Cashback vs. traditional discounts

While cashback and traditional discounts can both help consumers save money, they work in different ways. A traditional discount lowers the price immediately at checkout, while cashback returns part of the money after the purchase has already been completed.

Types of cashback in 2026

Not all cashback programs work the same way. Before signing up for a cashback program, it is important to review details such as annual fees, interest rates, minimum redemption, expiration policies, and spending categories.

Fixed-rate cashback

This type gives the same cashback percentage on all purchases. Example: 1.5% cashback on everything you buy. This structure is simple because you do not need to track categories or rotating offers.

Category-based cashback

Some cards or apps offer higher cashback percentages in specific categories such as supermarkets, restaurants, gas stations, or streaming subscriptions. For example: 3% on groceries, 2% on gas, 1% on all other purchases.

Rotating cashback categories

Some providers change cashback categories every few months. One quarter may focus on gas stations and grocery stores; another may include online shopping and travel purchases. These programs sometimes require manual activation each quarter.

Welcome bonuses

Certain credit cards offer introductory cashback bonuses if you spend a minimum amount during the first months after opening the account. For example: spend $500 in the first 3 months and receive $150 cashback bonus. The Federal Trade Commission recommends reviewing terms carefully before applying for financial products with promotional offers.

Where can you get cashback in the United States?

Credit cards:

Many credit cards in the U.S. include cashback rewards. Some examples include products from Discover, Chase, Capital One, and American Express. Some cards focus on categories like dining or travel, while others offer flat-rate cashback.

Debit cards:

Some financial institutions offer cashback debit cards, although rewards are usually smaller than those offered by credit cards. This may appeal to people who prefer avoiding debt or credit card interest.

Cashback apps:

Several mobile apps partner with retailers and offer cashback rewards for purchases. Examples include Rakuten, Ibotta, Upside, and Honey. These apps may provide cashback for grocery shopping, online purchases, gas stations, and restaurants.

Store loyalty programs:

Retailers sometimes offer cashback or store rewards through membership programs. For example, supermarkets, pharmacies, and warehouse stores may return store credit or savings points after purchases.

Cashback vs. points vs. miles: Which is better?

Although they are often grouped together under the category of 'rewards,' each one works differently and can be useful depending on a person's spending habits, financial goals, and lifestyle.

Cashback programs generally return a percentage of the money spent on eligible purchases. Points systems usually assign a numerical value to purchases that can later be redeemed for products, gift cards, discounts, or services. Travel miles are typically associated with airlines, hotels, or travel-focused credit cards.

For many people, especially those focused on getting some value on their everyday expenses such as groceries, transportation, gas, or household purchases, cashback can feel more useful as the reward is directly connected to money rather than conversion systems or travel programs.

3 practical tips for using cashback responsibly

1. Use cashback for purchases you already planned

Focus on recurring expenses such as groceries, gas, transportation, and utility bills. This helps you avoid overspending simply to earn rewards.

2. Don't buy things you don't need

A cashback offer does not automatically make a purchase worthwhile. For example, spending $200 to earn $4 cashback may not help your finances if the purchase was unnecessary.

3. Track your cashback earnings

Many apps and financial platforms allow you to monitor spending categories, cashback totals, and monthly rewards. Tracking your rewards can help you understand your spending patterns and maintain financial goals.

Does Común offer cashback?

No. Común does not currently offer cashback programs.

However, Común provides tools and resources that offer guidance for Latin American immigrants navigating the U.S. financial system.

While cashback might be useful for some people, it is important to pay attention to commissions, as savings when commissions are included might not be as strong as initially perceived. When comparing financial tools in the United States, cashback is only one factor to consider. Fees, commissions, account accessibility, and transparency can also affect your financial experience over time.

Común's cost for opening a debit account is $0, same as the $0 minimum balance and $0 monthly commission for the debit account.

FAQ

What is cashback and how does it work?

Cashback is a rewards system that returns a percentage of your purchases after you spend money using eligible cards, apps, or loyalty programs.

How is cashback calculated?

Cashback is usually calculated as a percentage of the purchase amount. For example, if you spend $100 and your cashback rate is 2%, you receive $2 back.

Where can I get cashback in the United States?

Cashback is commonly available through credit cards, debit cards, shopping apps, and retailer loyalty programs.

What is the difference between cashback and points?

Cashback returns money directly, while points are part of rewards systems that may only be redeemed for specific products, gift cards, or services.

Does Común offer cashback?

No. Común currently does not offer cashback.

Is cashback taxable?

In many cases, cashback earned through purchases is generally treated as a rebate rather than taxable income. However, tax treatment may vary depending on how rewards are earned. The IRS recommends consulting a tax professional for specific situations.

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In an era where digital innovation shapes every aspect of our daily lives, the financial sector hasn't been left behind. The introduction of mobile apps for managing finances and transferring money has revolutionized how we interact with our money, offering unprecedented convenience, efficiency, and security. This evolution isn't just about technological advancement — it's about breaking down barriers, making financial services more accessible, and fostering inclusion.

At the heart of this transformation is the rise of apps designed not just to facilitate financial transactions, but to seamlessly fit into users' lives, regardless of their background or financial status. At Común, we're leading the charge toward a more inclusive financial future. Through our innovative services, we aim to empower this vibrant demographic, highlighting the important role mobile apps play in the money transfer revolution and laying the groundwork for a discussion on the broader impact on society and the economy.

Unpacking the Impact of Mobile Apps on Money Transfers

The digital era has marked a major shift in how financial transactions happen, particularly money transfers. At the forefront of this revolution are mobile apps, which have transformed the traditional banking landscape. Mobile banking apps and money transfer services have simplified how we send and receive money. By linking bank accounts to mobile apps like Google Pay, Apple Pay, and Cash App, users can transfer funds instantly, pay bills, and manage their finances with just a few taps on their smartphones.

These apps offer features including international money transfers, multi-factor authentication for security, and the ability to monitor account activity in real time. However, they're often not inclusive of immigrant communities, with barriers to entry like language, documentation, and cost. At Común, we stand out because of our inclusive financial services aimed at helping grow the already considerable impact immigrants have on the U.S. economy, including:

• 62 million Latinos now live in the U.S.
• Latinos contribute $3.2 trillion to GDP.
• More than 1 million immigrants annually play a key role in addressing labor shortages.

Apps like Común embody the seamless integration of banking services into our digital lives, promoting financial planning and letting immigrants reach their financial goals more effectively. The arrival of mobile money transfer apps represents a significant leap forward in financial technology. By offering convenience, speed, and security, we at Común aren't just meeting users' immediate needs — we're also paving the way for a more inclusive financial ecosystem.

Security and Trust Measures in Money Transfer Apps

As money transfer apps become increasingly central to our daily financial activities, concerns about data security and fraud prevention have taken center stage. Financial institutions and app developers have prioritized security, implementing robust measures like multi-factor authentication, encryption, and fraud detection technology to protect user data and transactions.

Mobile banking apps now come with advanced security features designed to prevent unauthorized access and ensure money transfers are safe and reliable. Despite these measures, users are encouraged to exercise caution, such as not sharing sensitive information like bank account numbers or phone numbers, and using secure payment methods to mitigate risk. With Común, that's why our users know their money is safe:

1. Their card is protected by VISA's guarantee against unauthorized charges.
2. They can easily lock and unlock their card from the app.
3. They receive instant notifications about all transactions so they can stay on top of charges and make sure there's no fraudulent activity.

Trust in money transfer apps is built on the foundation of strict security measures and financial institutions' ongoing efforts to improve user security. While fraud risk can't be completely eliminated, implementing comprehensive security protocols has made money transfer apps a safe, reliable option for financial transactions.

The Convenience of Money Transfers Through Mobile Apps

Looking ahead, it's clear money transfer apps will keep evolving, introducing new features and innovations that will further revolutionize the financial landscape. The ongoing development of money transfer apps promises exciting innovations, like greater integration with digital payment systems, better international transfer capabilities, and even more robust security measures. For example, here are some of the new features we're rolling out at Común:

• Send money to your loved ones in Latin America from the app without breaking the bank, including Mexico, the Dominican Republic, Panama, Guatemala, and more.
• More locations to add cash to your account, using a barcode at stores like CVS or 7-Eleven.
• Personalized 24/7 customer service, so you can reach us day or night.
• Transfers to other bank accounts.
• Check deposit through your app.

Future iterations may offer more sophisticated financial planning tools, personalized banking services, and seamless integration with other digital payment platforms. The potential for innovation in money transfer apps is limitless, with advances poised to redefine the efficiency, security, and accessibility of financial transactions. As our app continues to evolve, it will undoubtedly play a crucial role in shaping the future of money transfers, giving our diverse users even more control over their financial lives and opening new possibilities for global financial inclusion.

1. U.S. Census Bureau. "Hispanic Population to Reach 111 Million by 2060." U.S. Census Bureau, 2018, https://www.census.gov/newsroom/facts-for-features/2023/hispanic-heritage-month.html

2. Hamilton, Dan, Ph.D., Matthew Fienup, Ph.D., David Hayes-Bautista, Ph.D., and Paul Hsu, Ph.D. "2023 U.S. Latino GDP Report." Center for the Study of Latino Health and Culture, California Lutheran University and UCLA David Geffen School of Medicine, 2023.

3. Ward, Nicole, and Jeanne Batalova. "Frequently Requested Statistics on Immigrants and Immigration in the United States." Migration Policy Institute, March 14, 2023, https://www.census.gov/library/visualizations/2018/comm/hispanic-projected-pop.html

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Registering a business as an immigrant in the U.S. generally involves choosing a business structure, obtaining an EIN from the IRS, and registering with your state. You don't need an SSN to get an EIN — an ITIN or foreign status works for this process.

Starting a business as an immigrant in the U.S. is an exciting step toward financial independence and long-term success. Fortunately, you don’t need U.S. citizenship or a Social Security Number (SSN) to register a business. Many immigrants successfully operate businesses using an Individual Taxpayer Identification Number (ITIN) and other available options. This guide walks you through the key steps to officially register your business, get the right tax IDs, and open a business bank account.

If you choose a Sole Proprietorship, you may need to register a Doing Business As (DBA) name, which allows you to operate under a name different from your personal name. For an LLC or Corporation, you’ll need to check your state’s Secretary of State website to confirm that your chosen business name is available. Each state has specific rules about what names can be used, so ensure yours complies with local guidelines.

What business structure should I choose?

Common options include sole proprietorship (simplest, no separation between personal and business liability), and LLC (separates personal assets from business liability, more paperwork).

Do I need a Social Security Number to register a business?

No — you can obtain an EIN (Employer Identification Number) from the IRS using an ITIN or by mail/fax if you don't have either an SSN or ITIN yet.

What are the basic steps to register my business?

Choose a business name and structure, register with your state, obtain an EIN from the IRS, and open a business bank account once you have your EIN and formation documents.

Frequently asked questions

Can I start a business in the U.S. without a Social Security Number?

Yes, you can obtain an EIN using an ITIN, or through an alternate IRS process if you have neither.

What's the difference between a sole proprietorship and an LLC?

A sole proprietorship has no legal separation between you and the business; an LLC separates personal assets from business liability but requires more paperwork.

How do I get an EIN?

Apply directly through the IRS website or by mail/fax — it's free and doesn't require a lawyer.

Do I need a lawyer to register my business?

Not necessarily for a simple structure like a sole proprietorship, though an LLC may benefit from professional guidance depending on complexity.

Can I use my personal bank account for my new business?

It's generally recommended to separate personal and business finances once your business is registered, for cleaner bookkeeping and liability protection.

What documents do I need to keep once my business is registered?

Your EIN confirmation letter, formation documents (for an LLC), and any state registration certificates.

Like most financial apps that don't charge a monthly fee, Común generates revenue mainly through interchange fees (a small fee paid by the merchant, not you, every time you use your debit card) and international remittance fees.

If Común doesn't charge a monthly fee, how does it make money?

Mainly through interchange fees — a small fee the merchant pays (not the user) every time the debit card is used — and international remittance fees, which start at $2.99 per transfer.

Does this mean using Común is "free"?

Using your checking account (no monthly fee, no minimum balance) is at no cost to you. International remittances do have a fee, shown transparently before you confirm each transfer.

Why does it matter to understand how your financial provider makes money?

Understanding the business model helps confirm incentives are aligned — a provider that earns from interchange fees benefits from you using your card, not from charging you hidden fees.

Frequently asked questions

Does Común charge any hidden fees if there's no monthly fee?

No, using the checking account is at no cost; the only visible fee is for international remittances, shown before you confirm.

What's an interchange fee?

It's a small fee the merchant pays to the payment network (Visa) every time a customer uses their debit card — the user doesn't pay it.

Does Común make money from my remittances?

Yes, remittance fees (starting at $2.99) are one revenue source, shown transparently before each transfer.

Why do some banks charge a monthly fee and Común doesn't?

It depends on each institution's business model; Común relies more on interchange and remittance fees than account fees.

Does this affect the safety of my money?

No, your money is FDIC-protected up to $250,000 through Community Federal Savings Bank, regardless of Común's revenue model.

Where can I see exact fees before using them?

The app shows applicable fees (like remittance fees) before you confirm any transaction.

One of the main challenges immigrants face in the U.S. is formalizing a lease, since property owners often require a series of documents that can turn the search process into a maze.

Examples might include credit scores, proof of income, background checks, and references that many immigrants do not yet have. However, there are proven strategies that make it easier for newcomers to obtain a lease in the United States.

If this sounds familiar, keep reading—we’ll explain in detail how to prepare to rent safely and avoid the typical obstacles immigrants encounter when establishing themselves in the U.S.

What do you need to rent in the United States?

Before you start searching for your next home, you should keep in mind the key requirements for renting an apartment in the U.S. These help the landlord confirm that the tenant is reliable and has sufficient financial solvency to pay rent on time and in full.

Below are the most requested items to sign a lease:

Personal identification

It’s very important to verify your legal identity. Landlords or real estate agents may ask for one or more of the following documents:

• Valid passport.

• Visa or resident card.

• Driver’s license.

• Social Security Number (SSN) or ITIN.

Financial solvency

To demonstrate you have sufficient solvency to cover the monthly rent, you can provide several documents, such as:

• Proof of income, such as pay stubs, tax returns, or bank statements.

• Employer letter or employment contract.

• It is also common to be asked for a security deposit equal to one month’s rent, which serves as a guarantee in case of damage to the property.

Credit history

Reviewing credit history is a crucial step for landlords and agents because it provides reliable evidence of the applicant’s financial behavior.

If you’ve been in the United States for a short time, you may not have a credit history. This article explains simple ways to start building one.

In that case, you may be asked for a credit report from an official agency or a signed authorization to check your credit score.

Local guarantors

If you lack sufficient evidence of solvency, you may be asked for a guarantor, who serves as a backstop if you cannot meet the lease terms.

Such a guarantor must reside in the United States and provide the following documents:

• Government-issued ID.

• Proof of income.

• Good credit history.

Renting in the United States: Process and leasing options for immigrants

Housing options in the U.S. are broad and adapt to all lifestyles, budgets, and immigration statuses.

Rental options you can find in the United States include:

• Furnished houses or apartments.

• Unfurnished houses or apartments.

• Individual rental.

• Shared rental.

Regardless of the type of property you’re looking for, we recommend following these steps to rent a house or apartment.

1. Explore and select the property

Take the time to review all property details and alternatives in different neighborhoods and cities. We recommend searching trusted sites such as Zillow, Realtor, or Apartments.com. Also ask friends or acquaintances who have gone through the process for referrals.

2. Evaluate the offer conditions

Carefully analyze the lease terms, such as price, property description, requirements, and restrictions.

3. Submit your rental application

When you find a home that meets your expectations, submit a rental application with your personal information, references, and authorization to check your credit history.

4. Visit the property

Before signing any contract or paying a deposit, it is essential to visit the property to ensure it matches the listing and is free from maintenance-related deterioration.

5. Submit the required documentation

If after the visit you are still interested in renting the property, the next step is to provide the previously mentioned documents, such as proof of income and government ID.

6. Review and sign the lease

The landlord will review your application and verify your documents. If approved, the final step is agreeing to and signing the lease terms, which set the rental conditions such as duration, cost, rules, and conditions for refunding the security deposit, among others.

Three key tips for a safe, hassle-free first rental

Finding your first rental in the U.S. can be a major challenge due to the number of requirements involved.

Below are some useful tips to help your search pay off as soon as possible.

Research the housing market

Use rental websites to research which areas are more affordable or best fit your lifestyle, ensuring you can cover not only rent but also day-to-day expenses.

Use multiple search methods

Don’t limit yourself to a single method. Alternate among websites, mobile applications, classifieds, and even the help of a real estate agent.

Avoid scams

It’s essential to stay alert to potential scams. Apply these tips and stay safe:

• Make sure the agent or brokerage is registered and has reliable references.

• Do not make any payment before personally visiting the property and having a contract formalized before a notary.

• Use only recognized platforms and portals.

• Be wary of last-minute offers or listings that seem “too good to be true.”

• Avoid using cash when finalizing the rental.

• Review each clause of the contract in detail before signing.

Considerations before choosing a home

Before choosing a house or apartment to rent, it’s important to consider several factors, for example:

• Location:

Location is one of the most relevant aspects when choosing a home. Beyond the city, consider the distance to your workplace and other frequent destinations.

• Neighborhood:

Research the type of neighborhood, safety, infrastructure, recreational areas, community profile, and any other information you consider significant for making a decision.

• Rental cost:

Make sure the rent fits within your means. Create a budget that includes your monthly income and expenses.

Below are tenants’ rights and obligations in the United States.

Payments and deposits

The tenant must pay the monthly rent and the agreed deposit on time. Both payments can be made by bank transfer, bank deposit, or check.

Maintenance and repairs

The landlord must ensure the property is in optimal condition and has all utilities. In turn, the tenant agrees to take care of the premises, keep them clean, and report any defects requiring maintenance.

Tenant legal protections

Tenants are protected by U.S. law against unfair practices, such as:

Refund of the security deposit if conditions are met.

Protection against unjustified or no-notice eviction.

Make your rent payments online safely and conveniently with Común

Renting your first home in the United States doesn’t have to be overwhelming. Take time to learn the most common requirements and consider alternative solutions like those in this article. This way, you’ll see it is possible to open the door to decent housing.

With the right preparation and tools, the rental process becomes much simpler and more accessible.

Rely on Común, a financial platform that addresses day-to-day needs in the United States, with an intuitive mobile app, so opening an account is quick and easy using qualifying official identification from your country of origin. It also makes it simple to send remittances up to the applicable limits to LATAM countries, so your family receives more, with competitive fees.

Discover Común, an excellent option dedicated to serving immigrant communities in the United States, with support available in Spanish.

Open your checking account today with a partner that understands your needs as an immigrant!

Frequently Asked Questions

If you still have questions, check our FAQs.

How much does rent cost in the United States?

The national average for rental housing is around $2,100 USD.

Where is it cheaper to live in the United States?

Cities such as Laredo, Texas, and Toledo, Ohio report the most affordable living costs.

Halloween and Día de Muertos fall on consecutive dates, October 31 through November 2, but they come from completely different traditions. Halloween has Celtic origins and is widely celebrated in the United States with costumes, trick-or-treating, candy, and spooky decorations. Día de Muertos is a celebration in Mexico that honors relatives who have passed, centered on ofrendas, favorite foods, and marigold flowers.

Because the two celebrations happen at nearly the same time, it's easy to wonder how they relate to each other. One focuses on costumes and neighborhood traditions, while the other is a time to remember loved ones who have passed. Many Latino families in the United States celebrate both, each with its own meaning. Understanding what makes each tradition unique can help preserve their significance while enjoying both.

What is Día de Muertos and where does it come from?

Día de Muertos is a Mexican tradition that honors the memory of relatives and loved ones who have died, observed on November 1 and 2. Its roots go back to pre-Hispanic cultures in Mesoamerica, including the Mexica, Maya, and Purépecha peoples, who saw death as a continuation of life rather than an ending. Over centuries, these Indigenous practices blended with Catholic traditions brought by Spanish colonizers, creating the celebration recognized today.

Families build ofrendas at home or at gravesites, placing photos, favorite dishes, candles, and marigolds to welcome the spirits back for a visit. UNESCO inscribed the celebration on its Representative List of the Intangible Cultural Heritage of Humanity in 2008, after originally proclaiming it in 2003. The holiday is about celebrating the lives of the people who have passed. Families gather, tell stories, prepare their favorite dishes, play their favorite music, and build ofrendas.

Some regions in Mexico celebrate slightly differently. In Michoacán, families spend the night at the cemetery with candles and food. In Oaxaca, comparsas (costumed parades) fill the streets. However, the heart of the celebration is honoring those who have passed by celebrating their lives.

What is Halloween and how is it celebrated in the U.S.?

Halloween is a tradition celebrated widely in the United States on October 31, a day when people wear costumes, children go trick-or-treating, families and friends carve pumpkins, and decorate their homes with haunted house decorations. It has roots in ancient Celtic festivals and later Christian observances, but in its modern form it is mostly a secular, community-based holiday for children and neighborhoods.

Halloween is widely celebrated across the United States, but it is not a federal public holiday, so schools and most workplaces stay open. Kids often dress up for school during the day and go trick-or-treating door to door in the evening. Neighborhoods decorate their yards with pumpkins, cobwebs, and lights weeks in advance.

For many Latino families in the United States, Halloween is one of the first traditions children experience at school and in their neighborhoods. Costume parades, classroom activities, and trick-or-treating are common parts of the celebration.

Halloween vs. Día de Muertos: key differences

Halloween and Día de Muertos take place within days of each other, which can make them easy to confuse. While both are widely celebrated during fall, they have different histories, traditions, and meanings. Being familiar with those differences can help you understand each better and celebrate accordingly.

• Purpose:
  Halloween is playful and focuses on costumes and candy. Día de Muertos is a remembrance of loved ones who have passed.
• Origin:
  Halloween developed from Celtic and Christian traditions in Europe and later took its modern form in the U.S. On the other hand, Día de Muertos comes from Indigenous Mesoamerican beliefs blended with Catholic practice.
• Symbols:
  Halloween decorations include pumpkins, ghosts, and skeletons as spooky themes. Día de Muertos centers on marigolds, candles, pan de muerto and offerings with specific meanings.
• Mood:
  Halloween aims to scare or entertain. Día de Muertos aims to honor and reconnect, often with warmth rather than fear.
• Status in the U.S.:
  Halloween is a widely observed cultural tradition, not an official public holiday. Día de Muertos is increasingly recognized in U.S. cities with large Latino populations, through parades, museum exhibits, and school programs, though it is not a national holiday either.

Although the celebrations take place during the same time of year, each has its own history and purpose. Many families choose to celebrate both while preserving and embracing the traditions and cultural meaning of each one.

How to celebrate Día de Muertos in the United States

Día de Muertos is celebrated in many parts of the United States, especially in communities with a strong Mexican and Latino presence. Cultural centers, museums, schools, and community organizations often host public altars, festivals, parades, and educational events during the days leading up to November 1 and 2. These events offer an opportunity to learn about the tradition and take part in local celebrations.

Many families also observe Día de Muertos at home. The way it is celebrated varies from one household to another, but common traditions include:

• Setting up an ofrenda with photos and personal items of relatives who have passed.
• Preparing a favorite meal or drink of the person being remembered.
• Sharing stories and family memories with children and other relatives.
• Visiting a local Día de Muertos festival, museum exhibit, or community altar.
• Buying traditional foods such as pan de muerto from a nearby Mexican bakery or grocery store during the season.

Because Halloween and Día de Muertos take place within the same week, many families participate in both. Children may go trick-or-treating on October 31 while the family gathers on November 1 or 2 to remember loved ones and continue Día de Muertos traditions.

How to set up a traditional ofrenda

The ofrenda is built to welcome the spirits of deceased loved ones back for a visit. While designs vary by region and family, most ofrendas include the same elements that follow the tradition:

• Photos:
  Pictures of the relatives being honored, placed at the center or top level.
• Cempasúchil (marigold) flowers:
  Their scent and bright color are believed to guide spirits back home. They're the most traditional flower for the occasion.
• Pan de muerto:
  A sweet bread shaped like bones, representing an offering shared with the departed.
• Favorite foods and drinks:
  Whatever the honored person enjoyed most in life, from mole to coffee to a favorite tequila.
• Candles:
  To light the path back for the spirit and represent hope.
• Papel picado:
  Cut tissue paper banners representing the wind and the connection between life and death.
• Sugar skulls (calaveras):
  Decorative and symbolic, representing the deceased with color rather than fear.
• Salt and water:
  Salt to purify the soul on its journey, water to quench its thirst after traveling.

Ofrendas are often arranged on two or three levels, symbolizing heaven, purgatory, and earth. But there is no single correct way to build one. Some families also include religious images, incense or seasonal fruit. However, it is very important to add something that had a special meaning for the person being remembered. That could be personal belongings, clothes, perfumes, but when you don’t have the items accessible, they can still be represented through colors, music or symbolic gestures. What matters is creating a space that reflects the memory of the loved ones being honored.

How to send money home so your family can celebrate Día de Muertos

Preparing for Día de Muertos often means buying flowers, candles, pan de muerto, ingredients for family recipes, and other items used to build an ofrenda. For families celebrating in Mexico or other parts of Latin America, money sent from relatives in the United States can help cover those seasonal expenses and support the holiday preparations.

If you plan to send money for the celebration, it's a good idea to do it before the end of October so your family has enough time to shop before November 1. Común Remittances allows eligible customers to send money from the United States to Mexico and other Latin American countries, with transfer fees starting at $2.99. Transfers typically arrive in less than 10 minutes, and money can be sent through the app without visiting a physical location. Eligible customers may be able to apply for a Común account with a valid passport, matrícula consular card, or more than 100 valid Latin American IDs.

Even from thousands of miles away, you can celebrate Día de Muertos whether it's in the US or by supporting your loved ones back home. Marigolds and pan de muerto make the celebration special but what matters most is honoring those who have passed by celebrating their lives in any way that you might find meaningful.

FAQ

What is the difference between Halloween and Día de Muertos?
Halloween is a tradition widely celebrated in the United States, focused on costumes, candy, and spooky fun, celebrated October 31. Día de Muertos is a Mexican tradition that honors deceased loved ones through ofrendas, food, and flowers, celebrated on November 1 and 2.

Is Día de Muertos celebrated in the United States?
Yes. Cities with large Latino populations hold public festivals, parades, and museum exhibits for Día de Muertos. Many families also celebrate at home with a private ofrenda.

What goes on a Día de Muertos ofrenda?
An ofrenda can include photos of the deceased, marigold flowers, pan de muerto, favorite foods and drinks, candles, papel picado, and sugar skulls. Salt and water are often included to represent purification and rest after the spirit's journey.

What do families in Mexico typically buy to prepare for Día de Muertos?
Marigolds, candles, pan de muerto, ingredients for the meal being offered, and materials for the ofrenda. Many families in the U.S. send money home to help with these costs.

How do I explain Día de Muertos to my U.S.-born children?
Focus on remembrance rather than fear. Share photos and stories about relatives who have passed, and let kids help build the ofrenda so they understand it as a way of keeping memory alive, not something scary.

What flowers are traditional for Día de Muertos?
Cempasúchil, also known as marigold, is the most traditional flower. Its bright color and strong scent are believed to guide spirits to the ofrenda so they can enjoy their favorite meal or drink.

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

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

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

Común Inc. may earn revenue from the conversion of foreign currencies.

Understanding Money Transfer Scams

Money transfer scams are fraudulent schemes designed to trick people into sending money or sharing sensitive financial information. These scams can happen through various channels, including emails, phone calls, text messages, and even social media. Scammers often pose as legitimate entities, like banks, government agencies, or trusted companies, to earn the victim's trust and prompt immediate action.

Common Tactics Used in Money Transfer Scams

• Impersonation: Scammers often pose as credible entities to make their requests seem legitimate. They may pretend to be from your bank, a government agency, or even a friend or family member in trouble.
• Urgency and Fear: Scammers create a sense of urgency or fear, insisting immediate action must be taken. This tactic pressures victims into making hasty decisions without proper verification.
• Emotional Manipulation: Many scams exploit the victim's emotions. For example, a scammer might claim a loved one is in trouble and needs money right away.
• Phishing: Scammers use emails or messages that appear to be from legitimate sources to steal personal information, like login credentials or bank details.

Impact of Money Transfer Scams

The consequences of falling victim to a money transfer scam can be severe:

• Financial Loss: The most direct impact is losing money, which can range from a few dollars to substantial sums.
• Identity Theft: Scammers can use stolen information to commit identity theft, leading to further financial and legal complications.
• Emotional Stress: Victims often experience significant stress and anxiety after realizing they've been scammed.

Understanding these tactics and their potential impact is the first step to protecting yourself from money transfer scams. Learn about Común account security

Types of Scams

Money transfer scams come in several forms, each with unique methods for deceiving victims. Below are two common types of scams to be aware of:

They Send You a Check in Exchange for a Return Payment

In this scam, the victim receives a check, often for a large amount, with instructions to deposit it into their bank account. The scammer then asks the victim to send part of the money back to them or to a third party, usually under the pretext of covering fees, taxes, or another made-up reason.

How It Works:

• Receiving the Check: The scammer sends a check that looks real, often claiming it's an overpayment, a prize, or some other reason.
• Depositing the Check: The victim deposits the check into their account. Initially, the bank may credit the amount to the victim's account, making it appear the funds are available.
• Return Payment Request: The scammer then asks the victim to send back a portion of the funds before the check fully clears.
• Returned Check: Eventually, the check is returned as fraudulent, leaving the victim responsible for the full amount, including the money they sent to the scammer.

Warning Signs:

• Receiving a check from an unknown source.
• Instructions to send money or gift cards in return.
• Pressure to act quickly before verifying the check's authenticity.

They Ask for a Confirmation Code Before Withdrawing Funds

In this scam, the scammer poses as a legitimate company or financial institution and contacts the victim, asking them to provide a confirmation code to verify their identity or complete a transaction.

How It Works:

• Initial Contact: The scammer contacts the victim, often through a phone call, text message, or email, posing as a representative of a trusted entity.
• Confirmation Code Request: The victim is asked to provide a confirmation code, usually sent to their phone or email.
• Unauthorized Access: Once the victim provides the code, the scammer uses it to access the victim's bank account or complete an unauthorized transaction.
• Withdrawal of Funds: The scammer withdraws funds from the victim's account, leaving them with financial losses.

Warning Signs:

• Unexpected requests for confirmation codes or personal information.
• Calls or messages claiming urgent verification needs.
• Requests to share codes sent to your phone or email, especially if you didn't initiate any transaction.

By understanding these specific types of money transfer scams, you can better protect yourself and recognize warning signs when they come up.

How to Avoid Money Transfer Scams

Avoiding money transfer scams requires vigilance and following certain best practices. Here are some essential tips to help protect you from falling victim to these fraudulent schemes.

Never Send Money to Someone You Don't Know

One of the most important rules to remember is to never send money to someone you don't personally know. Scammers often pose as legitimate businesses or people in urgent need, but once the money is sent, it's nearly impossible to get it back.

Key Points:

• Verify Identity: Always verify the identity of the person or organization requesting the transfer. Use official contact information to confirm their legitimacy.
• Question the Request: Be skeptical of any request to send money, especially if it comes from someone you haven't dealt with before or don't know in person.
• Consult Trusted Sources: Before sending money, check with friends, family, or financial advisors for a second opinion.

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Remember: Money Transfers Are Like Sending Cash

Money transfers are a convenient way to send money, but they're also irreversible and can be easily exploited by scammers. Treat money transfers with the same caution you'd use with cash transactions. Learn how to make international transfers

Key Points:

• Understand the Risks: Money sent via transfer is money that's gone. Unlike credit card transactions, money transfers don't have fraud protection or dispute mechanisms.
• Use Alternative Methods: For transactions with unknown parties, consider using payment methods with better security and fraud protection, like credit cards or payment platforms like PayPal.
• Double-Check Details: Before completing a money transfer service, double-check all the recipient's details to ensure accuracy and legitimacy.

Verify Identity and Authenticate Transactions

Verifying the identity of the parties involved in a transaction and ensuring the transaction itself is authentic are crucial steps to preventing money transfer scams. Scammers often rely on impersonation and fake transactions to deceive victims.

User Authentication at the Point of Purchase

Implementing strong user authentication methods at the point of purchase can significantly reduce fraud risk. This involves verifying the buyer's identity before completing the transaction.

Effective Authentication Methods:

• Biometric Verification: Use biometric data, like fingerprints or facial recognition, for added security during transactions.
• Secure Payment Gateways: Use secure payment gateways that offer robust authentication processes.
• Verification Codes: Require verification codes sent to the user's mobile device or email before completing the purchase.

Be Cautious When Transferring Money

Exercising caution and diligence when transferring money is essential to avoid scams. Here are some tips to keep in mind:

• Double-Check Recipient Details: Always double-check the recipient's information before starting a transfer. Make sure the name, account number, and routing or control number are accurate.
• Avoid Public Wi-Fi: Only complete financial transactions on secure, private networks. Public Wi-Fi can be easily compromised by scammers.
• Limit Transfer Amounts: If possible, limit how much money you transfer at once, especially when dealing with new or unknown parties.

Protect Your Bank Account

Protecting your bank account from unauthorized access is vital to preventing financial losses due to scams.

Security Measures:

• Strong Passwords: Use complex, unique passwords for your bank accounts. Avoid easy-to-guess information, like birthdates or common words.
• Regular Monitoring: Regularly monitor your bank statements and account activity for suspicious transactions.
• Account Alerts: Set up account alerts to notify you of large withdrawals, suspicious activity, or login attempts from unrecognized devices.
• Secure Devices: Make sure your devices are protected with up-to-date antivirus software and that you use secure browsers for online banking.

By following these guidelines and putting these security measures in place, you can significantly reduce your risk of falling victim to money transfer scams.

Recovering From a Money Transfer Scam

If you suspect you've fallen victim to a money transfer scam, it's crucial to act quickly to limit any potential damage and increase your chances of recovering lost funds. Here are the steps to take to address the situation:

What Are the Steps to Recover Funds From Money Transfer Scams?

Contact Your Bank Immediately

The first and most critical step to recovering from a money transfer scam is contacting your bank. Here's what to do:

• Provide Details: Give your bank all the information about the transaction, including dates, amounts, and any communication with the scammer.
• Request an Investigation: Ask the bank to investigate the transaction. They may have specific procedures for handling fraud cases.
• Follow Up: Stay in regular contact with your bank to stay updated on the investigation's progress and any action they take.

Report to Authorities

• File a Report: Report the scam to your local law enforcement agency. Give them all the details and any evidence you have.
• Contact Federal Agencies: In the United States, report the scam to the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3). These agencies can help investigate the fraud and potentially recover funds.

Notify Your Employer

If the scam involves your workplace or business accounts, notify your employer right away. They may have additional resources or protocols to help mitigate the impact.

Monitor Your Accounts

• Watch for Unauthorized Activity: Closely monitor your bank accounts and credit reports for any signs of unauthorized transactions or identity theft.
• Set Up Alerts: Enable alerts on all financial accounts to get notified of any suspicious activity.

Change Security Details

• Update Passwords: Change the passwords on all your financial accounts and any other accounts that may have been compromised.
• Enable Two-Factor Authentication: Improve your account security by enabling two-factor authentication wherever possible.

Seek Professional Advice

• Legal Advice: Consider consulting with an attorney specializing in financial fraud to understand your legal options and rights.
• Financial Advisor: A financial advisor can help you assess the scam's impact on your finances and advise you on steps to prevent future occurrences.

By following these steps, you can take proactive measures to recover from a money transfer scam and protect yourself from future incidents. Staying informed is key to safeguarding your financial well-being in an increasingly digital world. Learn more about the immediate actions you can take if your account has been compromised

Conclusion

Money transfer scams are pervasive threats in today's digital landscape, targeting both individuals and businesses with sophisticated tactics. However, armed with knowledge and vigilance, you can protect yourself against these fraudulent schemes. By understanding common tactics, recognizing warning signs, and implementing preventive measures like verifying identities and protecting your bank accounts, you can significantly reduce your risk of falling victim to scams.

In the unfortunate event that you're scammed, quick action is crucial. Contact your bank immediately, report the scam to authorities, and monitor your accounts for unauthorized activity. By staying cautious and skeptical of unsolicited requests for money or personal information, you can navigate financial transactions with confidence and security.

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Cashing a Check at Your Own Bank

When it comes to cashing a check, one of the simplest options is visiting your own bank or financial institution. Here's a step-by-step process for depositing or cashing a check:

1. Endorse the Check: Flip the check over and sign your name on the back in the area designated for endorsement. Make sure your signature matches what's on file with the bank.
2. Visit Your Bank: Head to the local branch of the bank where you have an account. Bring a valid form of ID, like a driver's license or passport.
3. Approach a Teller: Depending on your preference and the bank's options, you can present the check to a teller for processing or use an ATM equipped with check deposit functionality to get your money.
4. Provide Necessary Information: If you're dealing with a teller, you may need to provide additional account information, like your account number, the issuing bank, and the check amount. For ATM deposits, follow the on-screen prompts to enter the relevant details.
5. Confirm Deposit or Receive Cash: After processing, you'll receive confirmation of the deposit into your account or the cash in hand if you chose to cash the check.

'Cashing' a Check Electronically

Beyond traditional in-person methods, many banks offer electronic options for depositing checks. This convenient approach lets you deposit checks without visiting physical locations or even cash checks without ID. Here's how it works:

• Mobile Deposit: Most banks provide a mobile app that lets you deposit checks using your smartphone or tablet. Simply endorse the check, take photos of the front and back, and submit them through the app.
• Online Banking: Some banks offer online banking portals where you can scan and upload images of checks for deposit. This method generally follows steps similar to mobile deposit and is accessible through a web browser.
• Electronic Funds Transfer: In some cases, you may have the option to electronically transfer a check's funds directly to your account without needing physical processing.

Pros and Cons of Checking Accounts

Checking accounts serve as the hub for many financial transactions, offering both benefits and drawbacks. Understanding these pros and cons is crucial to effectively managing your resources.

Advantages of Having a Checking Account

• Convenience: Checking accounts provide a convenient way to access and manage your funds for everyday expenses, like paying bills and making purchases with a debit card.
• Writing Checks: With a checking account, you can issue checks to people or businesses, offering a secure, traceable payment method.
• Direct Deposit: Many employers offer direct deposit, letting your paychecks be automatically deposited into your checking account, providing quick access to money.
• Online Banking: Most banks offer online banking services for checking accounts, letting you monitor account activity, transfer money, and pay bills from the comfort of home or on the go.
• Overdraft Protection: Some checking accounts come with overdraft protection options, which can help prevent declined transactions and fees in the event of insufficient funds.

Disadvantages or Limitations of Checking Accounts

• Fees: Some checking and money market accounts may have monthly maintenance fees, overdraft fees, limited withdrawals, or ATM fees, which can reduce your balance if not carefully managed.
• Minimum Balance Requirements: Certain checking accounts require you to maintain a minimum balance to avoid fees, which can be a challenge for those living paycheck to paycheck.
• Limited Interest: While some checking accounts offer interest on balances, rates are typically lower compared to savings accounts, resulting in minimal earnings on your deposits.
• Fraud Risk: Issuing checks or using a debit card linked to your checking account exposes you to the risk of fraud or unauthorized transactions, requiring vigilance and prompt reporting of any suspicious activity.

By carefully weighing the advantages and disadvantages of checking accounts and considering key factors when selecting the right account, you can effectively manage your finances and get the most out of your banking experience.

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Where to Cash a Check

When it comes to cashing a check, you have several options available, ranging from a traditional bank to a retail store. However, not all locations are equal, and it's essential to weigh the pros and cons of each option before making a decision.

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• Banks: Your bank is often the simplest option for cashing a check. You can visit a branch or use an ATM equipped with check deposit functionality. Many banks and credit unions also offer mobile deposit options, letting you deposit checks using your smartphone.
• Retail Stores: Some retail stores, like supermarkets, convenience stores, and big-box retailers, offer check-cashing services for a fee. This can be a convenient option if you don't have a bank account or need access to cash outside of banking hours.
• Check-Cashing Stores: Dedicated check-cashing stores specialize in cashing checks for a fee. While these establishments provide quick access to cash, their fees can be higher compared to other options, reducing the amount you receive.
• Prepaid Debit Card: Certain prepaid debit cards let you load checks onto the card electronically, providing instant access to funds. This can be a convenient option if you regularly use prepaid cards for financial transactions.

Where to Avoid Cashing a Check Due to Potential Fees or Limitations

• Payday Lenders: Avoid cashing checks at payday loan establishments, since they often charge exorbitant fees and may engage in predatory lending practices.
• Pawn Shops: While some pawn shops offer check-cashing services, their fees can be high, and they may require collateral or impose additional charges and higher costs to cover transactions.
• High-Fee Retailers: Be careful when cashing checks at retailers that charge high fees for the service, since these fees can significantly reduce the amount of cash you receive.

When deciding where to cash a check, consider factors like convenience, fees, and access to money. Choose a reputable establishment and service with transparent fee structures to make sure you get the most value from your check-cashing experience.

Comparing Checking and Savings Accounts

Understanding the differences between checking and savings accounts is crucial for effective financial management. Here's a concise comparison:

Interest Rates and Benefits of Savings Accounts

• Interest Rates: A savings account generally offers higher interest rates compared to a checking account, making it ideal for growing your money over time.
• Benefits:
• Goal-Oriented Saving: Savings accounts are great for setting aside funds for specific goals.
• Safety Net: They provide a financial cushion for unexpected expenses.
• Access to Funds: While there may be a limit on withdrawals, savings accounts offer relatively easy access to your money.

Considerations for Having Both Accounts at the Same Bank

• Convenience: Managing both a savings and checking account at the same bank offers ease in transferring money, viewing balances, and accessing statement cycles and bundled services.
• Relationship Benefits: Some banks or credit unions offer perks for customers with multiple accounts, like higher interest rates or waived fees.
• Simplified Experience: Consolidating a savings and checking account simplifies banking tasks like bill payments and money transfers.
• Diversification: However, having accounts at different banks provides diversification and can mitigate risks associated with a single financial institution.

Ultimately, the decision to have a savings and checking account at the same bank or spread across multiple financial institutions depends on your preferences, financial goals, and banking needs.

Loading a Check Onto a Prepaid Card

Loading a check onto a prepaid card is a convenient alternative to traditional banking methods, offering flexibility and accessibility for people who may not have or prefer not to use traditional accounts. Let's briefly break down the process and considerations associated with this method.

Prepaid Cards and Their Suitability

• Prepaid Cards: Reloadable payment cards not linked to traditional bank accounts.
• Loading Checks: Prepaid card providers offer options to load checks electronically through mobile apps or online portals.
• Suitability: Ideal for those without a bank account or who prefer alternative financial services.

Pros and Cons of Using Prepaid Cards

Pros:

• Accessibility and convenience for loading checks.
• Control over spending and security features.

Cons:

• Monthly fees for various transactions.
• Limited features compared to traditional bank accounts.
• Reload limits and lack of FDIC insurance.

Consider the convenience and accessibility of prepaid cards for check transactions, keeping in mind the associated fees and limitations.

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Conclusion

Navigating the check banking landscape today requires a balanced understanding of the advantages and disadvantages inherent to this payment method. While checks offer flexibility and accessibility, they also come with potential fees and security risks. By weighing the pros and cons outlined in this article and exploring alternative banking options, people can make informed decisions to optimize their financial and cash management strategies.

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If you need to send money to your home country from the United States, it is important to consider how long an international money transfer takes. In general, the processing time for this type of operation is usually 1 to 5 business days.

However, this depends on several factors, such as the payment system, the banks involved, the currency conversion, and the holidays in between.

That is why it is important to know the different types of international money transfers available, the advantages and disadvantages of each one, and, of course, how long they take to deliver the money to its destination.

Below, we offer you a guide to answer those questions so you can send money home as quickly and safely as possible.

What is an international money transfer and how long does it usually take?

First of all, an international transfer is the sending of money to a bank entity located outside the country of the originating account. Unlike domestic transfers, international transfers involve additional banking systems, such as the SWIFT networks, which can increase costs and processing times in many cases.

There are several factors that influence the total time an international money transfer takes, but in general, it takes 1 to 5 business days.

For example, one relevant aspect that influences this is the system used, whether SWIFT or SEPA, which have different conditions and characteristics.

SWIFT Transfers

The SWIFT system is the largest network: it connects thousands of traditional banks worldwide to send money from one country to another through secure mechanisms.

Characteristics of the SWIFT system

• In general, it takes 3 to 5 days to complete money transfers.

• The involvement of intermediary banks is common, which can generate additional fees.

• It is useful for sending money in different currencies, although it implies disadvantages in time and costs.

• To use this system, check the SWIFT code of the receiving bank.

SEPA Transfer

On the other hand, the SEPA system is focused on international money transfers within the European Union.

Characteristics of the SEPA system

• International money transfers are usually completed in 1 business day.

• Fees are more affordable compared to the SWIFT system.

• This system works exclusively in the SEPA area, and for transactions in euros.

As you can see, both the SWIFT and SEPA systems are useful for making international money transfers safely. Although for those living in the United States, the latter is not recommended due to its geographic limitations.

Here is a comparison table:

Factors that influence the time of an international money transfer

The time an international money transfer takes is not fixed. It varies according to the type of transfer and other elements involved in the operation.

Here is what you need to know to estimate how long it will take for your money to reach your loved ones.

Payment system

So far, we have presented the SWIFT system, which takes 3 to 5 business days, and SEPA, which is generally reflected the next business day.

In addition, there are ACH (Automated Clearing House) transfers, which are a more common system in the U.S., characterized by being a more economical option, although the process usually takes 2 to 3 business days.

Intermediary banks

There are cases in which the financial institutions participating in an international money transfer do not have a direct relationship with each other, so they need to involve intermediary banks. This, in addition to increasing costs, lengthens transfer times, because it makes the operation take longer than usual.

Cut-off times and business days

Another essential aspect is the cut-off time banks have for executing transactions. If you send money after this time, the operation is processed the next business day.

Also, do not forget to take into account the holidays of both the sending country and the receiving country, which also extend the waiting time.

Currency conversion and destination country

When sending money from the United States to your home country in Latin America, the bank will need to make the corresponding currency exchange and apply an exchange rate. This also usually adds time to the international money transfer process.

Security verifications and compliance controls

Banks often carry out security checks to prevent money laundering and fraud, especially when large amounts are involved.

What information do you need to make an international money transfer?

You are almost ready to start sending money abroad. But first, it is very important that you make sure you have the necessary information to process this type of transfer. Otherwise, the transfer could be rejected or take longer than usual.

Sender’s information

You will need to provide your basic personal information: full name, bank account, official address, and phone number.

Beneficiary’s information

It is also essential to provide the details of the person who will receive the money: full name, recipient’s account number, address, and country of origin.

Bank codes

• IBAN: for transfers within the European Union.

• SWIFT/BIC code: for transfers in most of the world, including the United States.

Amount and currency

Indicate the amount of the transfer and the currency in which it will be received.

Purpose or payment reference

Finally, indicate the purpose of the transfer. It may be: maintenance payment, family support, family savings, etc.

How can you speed up an international money transfer?

We know that sending money to your family and loved ones is very important, which is why it is vital that you avoid mistakes and bad practices that could delay your transfers even more.

• Verify that the beneficiary’s details are complete and correct: check that your recipient’s details are written as they appear on their official identification.

• Make the transfer before the bank’s cut-off time: remember that doing it after this time causes the transfer to be processed the next business day.

• Avoid sending money on weekends or holidays: try to send money on business days to avoid delays.

• Consider using specialized remittance services with faster processes: there are alternative services that offer better conditions than traditional banks.

Make your international money transfers quickly and safely with Común

This time, we learned that international transfers are money transfers made from one country to another, and there are several factors involved in the time they take to be completed.

Are you looking for a way to send money home without complications?

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Make your first international money transfer, forget about hidden fees, and get transparent rate so your loved ones receive more for less.

Frequently Asked Questions (FAQ)

If you still have questions, check our FAQ.

What is the average time of an international money transfer?

Approximately 1 to 5 business days.

Why do some transfers take longer than usual?

It depends on the system used, the involvement of intermediaries, the currency exchange, and other factors. That is why you should make sure to check the estimated time before sending your money, to see if it fits your timing and needs.

Can I send money on weekends?

Yes, but it will be processed the next business day in most cases.