1. Comun: A Bank Account¹ with a VISA Debit Card

A Comun account comes with a VISA debit card, which gives you the convenience and security of using one of the most widely accepted payment methods worldwide. Whether you are shopping online or in a physical store, your Comun VISA debit card has your back.

2. FDIC Insured Money with VISA's Unauthorized Charge Guarantee

Your money is safe with Comun. The funds in your Comun account are FDIC insured, which means your deposits are protected up to $250,000 through Community Federal Savings Bank. Plus, VISA's guarantee against unauthorized charges offers an additional layer of security, giving you peace of mind that your money is protected against fraudulent activity.

3. No Absurd Fees

One of the outstanding features of a Comun account is its fee structure: there are no absurd fees. You won't be charged an opening fee, a monthly fee, minimum balance fees or membership fees. This means that more of your money stays with you, where it belongs, with no hidden fees.

4. Largest Cash Deposit Network in the U.S.

Comun has the largest cash deposit network in the United States. You can deposit cash at more than 88,000 locations, including major chains such as Walmart, Walgreens, CVS, Dollar General and 7-Eleven. This extensive network ensures that you can conveniently deposit cash no matter where you are.

5. First Class Customer Service

Customer service is a priority at Comun. You'll have access to world-class support available seven days a week via chat, email or phone. Whether you have questions or need help, Comun s customer service team is ready to assist you.

6. Affordable Remittances

Sending money abroad can be expensive, but not with Comun. The account provides access to one of the cheapest remittance products on the market⁴, starting at just $2.99 per remittance, regardless of the destination country or collection method. This means you can send money to your loved ones without worrying about high fees reducing the amount you're sending.

7. Take it out with your country's official documentation and Your Information Is Safe

One of the most inclusive features of a Comun account is that you can use your country's official documentation to open an account. Applicants can apply with any official government-issued ID, including a driver's license, voter's credential and more².

8. Early Access to your Paycheck

With Comun, you can access your paycheck up to two days in advance without fees³. This feature can help you manage your finances more effectively, giving you more flexibility and peace of mind.

9. Instant Notifications and Secure Login

Stay informed and secure with Comun s instant notifications for every transaction. Secure login features, including Touch ID, ensure that only you have access to your account, keeping your funds and personal information safe.

A Brief History of Banking Platforms

To truly appreciate the benefits of a Comun account, it is helpful to understand how banking platforms have evolved over time.

The Evolution of Banking

Traditional Banking:

Banking as we know it began with physical branches where customers could manage their finances in person. These banks offered essential services such as deposits, withdrawals, loans and financial advice. Customers had to visit the bank during business hours, which could be inconvenient for many.

The Emergence of Online Banking:

The Internet revolutionized many industries, and banking was no exception. Online banking emerged in the late 1990s, allowing customers to perform basic banking tasks from their computers. This innovation provided greater convenience and accessibility, reducing the need to visit physical branches.

Mobile Banking:

With the proliferation of smartphones in the early 2000s, mobile banking became the next big leap. Banks developed mobile apps that allowed customers to manage their accounts, transfer money and even deposit checks from anywhere, anytime. Mobile banking made financial management more accessible and convenient than ever before.

Neobanks and Digital Only Platforms:

The latest evolution in banking is the rise of neobanks: digital-only platforms that offer banking services without physical branches. These banks leverage technology to reduce overhead costs and provide innovative, user-friendly financial products. Comun is a leading example of this new generation of banks.

Why Choose Comun?

Choosing Comun means choosing a bank that prioritizes your financial well-being and security. With no unnecessary fees, extensive cash deposit options, superior customer service and inclusive policies, a Comun account is designed to meet your needs and exceed your expectations. In addition, support from leading investment firms such as Animo Ventures, Costanoa Ventures and FJ Labs underscores the strength and reliability of Comuns financial backing.

When you choose Comun, you don't just get a bank account; you get a partner who supports your financial journey every step of the way, ensuring that your unique needs are met with the utmost care and attention.

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

What is a Bank Account Number?

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

Structure of a Bank Account Number

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

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

Importance of Your Bank Account Number

• Transaction Accuracy: The account number is vital for accuracy in financial transactions, ensuring that money is sent or received correctly, whether you are setting up direct deposits, handling bill payments, or executing other bank-related financial transactions.
• Security: The uniqueness of your account number adds a significant layer of security, protecting against fraud and ensuring that funds are not diverted.
• Financial Management: Understanding and managing your bank account numbers, whether for checking, savings or other types of accounts, aids in efficient financial management and security measures such as identity theft prevention.
• International TransactionsFor transactions beyond domestic borders, the International Bank Account Number (IBAN) and Bank Identifier Code (BIC) are used in conjunction with your account number to facilitate international payments and identify the relevant financial institutions globally.

Manage Your Bank Account Number

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

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

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

Things You Should Know: Bank Account Number vs. Routing Number

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

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

• They all have different digits: Each bank account number is unique to the account holder within a particular bank. No two accounts at the same bank have the same account number.
• Amount and Structure: The length and structure may vary by bank and country, typically ranging from 8 to 12 digits in most countries. Some countries may use longer formats.

Routing number (also known as a sort code in some countries) identifies the bank itself and sometimes the branch where the account is held. It is used to direct money transfers such as direct deposits and bill payments to the correct bank.

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

In addition, the geographic validity of these numbers varies. A bank account number is valid throughout the bank and does not change even if the account holder moves to another branch, unless the banking system specifies otherwise. On the other hand, a routing number is often specific to a region or branch, particularly in larger banking systems such as those in the United States. This specificity helps in managing and directing payments accurately within the complex network of branches and banks.

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

Conclusion

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

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

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

Starting today, all Común customers will have access to free international money transfers for a limited time. Thereafter, the fee will start at $2.99.

Sending international money transfers, also known as remittances, can be costly, given the additional fees consumers face from financial institutions and other non-bank service providers. This is an area particularly relevant to the Latino community. According to a recent report by the Inter-American Development Bank, remittances to Latin America and the Caribbean will reach an all-time high in 2023, reaching $155 billion, an increase of 9.5% compared to 2022 ($142 billion). At Comun , we believe that transfer remittances should not come at a high cost. Today, we are pleased to announce that all Comun customers can send money to Latin America free of charge for a limited time. Thereafter, the fee will start at $2.99, which is lower than what other providers offer.

To put into perspective how much Latinos can save on fees with international money transfers, Comun analyzed and compared the cost of using providers like Western Union or Remitly versus Comun. In addition, we wanted to know how customers interact with Comuns new money transfer feature, which became available in March 2024.

For the analysis, we first looked at the average number of remittance transfers that Comun s clients send monthly; in this case, it was two transfers. Using the knowledge of Comuns customers, the report analyzed the most common countries to which customers send money. Finally, we examined how much a consumer could save on remittance fees over a one-year and five-year period if they used Comun versus Western Union or Remitly, assuming they sent two money transfers each month.

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Key findings

• Comun clients' money transfer destinations: Comun clients were most likely to send remittances to Mexico, followed by Honduras, Guatemala, Colombia and Nicaragua.
• Paying in person to send money internationally can cost hundreds of dollars: Based on our analysis, assuming a person sends two remittances per month and pays in person (e.g., by visiting a Western Union location), fees can amount to $960. By using a service like Comun, users can save nearly $600 in fees over five years. In addition, Comun customers have the convenience of sending remittances directly from their phones.
• Even if users can avoid paying in person and want to send remittances from a bank account, sending money overseas is still costly: Our analysis found that for users who want to send remittances directly from a U.S. bank account, using a service like Comun instead of Western Union and Remitly can save consumers more than $20 in one year and $120 over five years.

For more information about Comun and its latest remittance offer in conjunction with a U.S. bank account and debit card, click here. 

Methodology

Our analysis included several data points such as:

1. To determine the most common countries to which Comun customers send money and the average number of transfers each month, we examined customer usage between March 7, 2024 and April 15, 2024.
2. To understand how much customers can expect to pay to send international money transfers, we analyzed Western Union and Remitly fees. Our analysis examined how much an individual pays in remittance fees if 1) they pay in person, i.e., walk into a Western Union location to send a transfer, and 2) an individual sends money through their bank account, and the recipient picks it up in cash at their destination.

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

¹ Delivery times may vary.

²Terms and Conditions here. Terms and Conditions apply. Limited time offer. Service UniTeller, Inc. is licensed in all states that require a license. Comun, Inc. and/or UniTeller Service, Inc. may earn income from foreign currency conversion. Rates are subject to change. Service UniTeller, Inc. and/or Comun, Inc. reserve the right, at any time, without prior notice, to add, modify or cancel any and/or all terms of the promotion, or replace, in whole or in part, the promotion with another offer without liability to Service UniTeller, Inc. and/or Comun, Inc.

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There is no doubt that Western Union has established itself as a leader in remittance transfer , with more than 145 years of permanence in the market.

Since its inception, Western Union has enabled people without access to a bank account to make quick money transfers, which has been especially relevant to rural and immigrant communities in the United States.

According to recent data, during 2023, 12% of remittances sent from the United States to Latin America and the Caribbean were sent through Western Union, making it one of the leading money transfer services globally.

Today, the transfer of remittances is essential in the lives of millions of Latin American migrants in the United States, so on this occasion we will address the best alternatives to Western Union, which solve problems such as high commissions, unfavorable exchange rates and the complexity of the processes, through more modern, accessible and fair financial services.

Why look for alternatives to Western Union?

For more than a century, Western Union has been dedicated to bringing families closer together through international money transfer services, with multiple delivery options and broad coverage.

But the truth is that over the years, services have appeared that fill Western Union's opportunities for improvement, such as:

High and variable commissions

One of the main difficulties faced by the immigrant community in the United States when sending money is the high money transfer fees, which considerably affect the final amount to be received.

For example, according to Western Union's price calculator, the cost to send $500 USD to Mexico through an agency and with cash collection would be $15 USD, with a dollar value of 18.17 MXN.

Uncompetitive exchange rates

In addition to commissions, international transactions involve currency exchange, which in turn can be detrimental to the recipient, depending on the exchange margin used.

In the previous example using the Western Union price calculator, the dollar price was MXN 18.17, compared to an official value of MXN 18.64, which would result in the recipient receiving MXN 9,081 instead of MXN 9,320.

Limits and restrictions

Another factor that could be detrimental to migrants sending remittances to Mexico are the limits and restrictions imposed, subject to factors such as method of payment, receiving country and identity verification.

Generally, for unverified users, the limit for sending cash by Western Union is $3,000 USD per transaction. Upon identity verification, this amount may increase.

Speed of transactions

The speed of Western Union money transfer depends on the method of payment and the method of delivery, which you can check below.

• Debit/credit card - cash: minutes
• Debit/credit card - bank deposit: 1-2 business days
• Bank account - cash: 3-5 business days
• Bank account - Bank account: up to 5 business days
• Cash in branch - Cash in branch: minutes
• Electronic money transfer - mobile wallet: up to 24 hours

Accessibility and convenience

Western Union is known for its extensive global presence, as well as the accessibility of its international money transfer services.

However, for these reasons, their lines and waiting times to send money are also increasing. If you need to speed up your transactions, this massive service may not be your most favorable option.

9 Alternatives to Western Union for sending money home

In case Western Union doesn't fit your needs, here are the best applications for sending money.

Comun

Comun is a comprehensive platform that not only allows you to transfer money in and out of the U.S., but gives you access to a complete and efficient financial experience that also offers easy access to cash.

Access support also available in Spanish 24/7, pay a transparent and fixed fee for international money transfers starting at 2.99 USD, with no hidden fees.

Ria Money Transfer

Ria Money Transfer is a service similar to Western Union. It has coverage in a large number of countries around the world and offers different payment and delivery methods, as well as partnerships with retailers such as Walmart.

Wise (formerly TransferWise)

Wise is a UK-based financial technology company that facilitates international money transfers and offers benefits such as multi-currency accounts and real exchange rates.

Remitly

Remitly is a fintech that operates mainly in the United States, Canada and Australia. It allows money transfers with the option of cash, bank account or mobile wallet. Although it is a good option for sending remittances to Latin America, it has uncompetitive commissions and exchange rates.

WorldRemit

WorldRemit is a global money transfer service with a presence in more than 130 receiving countries. In addition to the cash pickup and bank account options, it also allows transfers through phone recharges.

PayPal/Xoom

Xoom is a remittance transfer company acquired by PayPal. It offers money transfers with multiple receiving methods, such as bank deposit, cash, mobile wallet or direct transfer .

MoneyGram

MoneyGram is a U.S. company specializing in international money transfers and peer-to-peer (P2P) payments. It has a presence in more than 200 countries and different payment options.

OFX

OFX is a company specialized in international money transfers and currency exchanges with presence in more than 190 receiving countries.

Revolut

Revolut is a UK fintech offering multi-currency digital accounts, international money transfers and investments.

How to choose the most convenient alternative for your remittances?

If you are still wondering which money transfer application is right for you, remember to consider the following factors before choosing the best alternative to Western Union:

Commissions and the real exchange rate

It is advisable to look for a payment service provider with fixed and clear rates, so that your family receives as much money as possible.

Money transfer speed

Although in several cases, most applications offer fast money transfers, in others, the waiting time could be detrimental to the recipient.

transfer and withdrawal methods

Make sure that the transfer methods suit your needs, whether by bank account, credit or debit card or cash transfer .

Coverage in your country

Verify that the money transfer service has coverage in Latin America, and that this does not imply extra transfer fees.

Ease of use and customer support

It is important that you can communicate easily in case you have any problems. Choose an option with 24/7 support in English.

Safety and confidence

Verify that the service has the necessary permits and regulations of the places where it operates, as well as the necessary security measures to keep your data safe.

Comun: A great financial and remittance alternative designed for the immigrant community in the U.S.

Although Western Union is an excellent alternative to send money abroad, there are better options with more competitive and fairer conditions to make your money and your family's money work.

It is essential to research and compare each international payment service in order to choose the option with the most appropriate benefits for you.

Comun offers you a comprehensive service with which you can make international money transfers at low cost, plus you will get a complete financial experience in your language.

• Easily open your account with your country's official documentation
• Make your first international money transfer for free and then just pay from 2.99 USD per transfer, up to the applicable limits.
• Deposit cash at more than 88,000 retail stores in the U.S.
• Keep track of your finances in a mobile application
• Get 24/7 support in English

Open your account today and learn about the best alternative to Western Union.

Frequently Asked Questions

Is it safe to use digital alternatives to Western Union?

Comun uses secure technology and complies with U.S. financial regulations to protect your money transfers. You can also choose from multiple payment and delivery options.

What are the hidden costs when sending money internationally?

International money transfers generate commissions, in addition to the currency conversion rate.

Can I send money to a country if I do not have a bank account?

With Comun, you can send cash even if you don't have a traditional U.S. bank account.

What do I need to open an account with services like Comun?

An Android or iOS compatible cell phone and an official ID from your country.

How long does a money transfer take with these alternatives?

Money transfers with Comun are reflected in a matter of minutes or hours.


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

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

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

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

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

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What is a check and how to cash it?

Checks are used as a form of payment, allowing individuals and businesses to transfer funds without the need for physical cash. A check is a specific amount of money from the check writer's account allocated to a check recipient (the payee). The check is generally written, dated and signed, acting as an instrument that directs a bank to pay a payee.

Before cashing a check, make sure all details are correct and the check is valid. Verify the payee's name, the amount written, the date and the signature of the issuer. Also sign your name on the back of the check in the designated endorsement area, as this is necessary for banks to process checks. Take the endorsed check to your bank or use an ATM or mobile banking app if your financial institution offers check deposit services. You may also be asked to provide valid identification.

If you are depositing, fill out a deposit slip if necessary, and the funds will be credited to your account. If you are cashing, the bank will provide you with the cash amount after deducting any applicable fees. If you deposited the check, it may take a few days for the check to clear and the funds to be available in your account, depending on your bank's policies.

Find more information about what a check is and how to cash it here.

Realizing that a check is lost: Stay calm and act quickly

Losing a check can feel overwhelming, especially if you are new to banking. The first step in handling a lost or stolen check is to stay calm. Panicking won't help, and thinking clearly and quickly is your best ally here. Take a moment to retrace your steps. Sometimes, the check may simply be misplaced rather than lost. Check all the possible places it could be. If it really is missing, it's time to act quickly to prevent any potential misuse of your bank or savings account.

Contacting your bank: The first line of defense

Your bank or credit union is your best friend in this situation. As soon as you realize a check is missing, contact your bank immediately and begin monitoring bank accounts for signs of identity theft. Most financial institutions have a dedicated customer service line for such emergencies. Be prepared to provide account information such as the check number, amount and date it was issued. The sooner you notify them, the better they can help protect your account from fraudulent activity and identity theft.

Stop payment request on a lost or stolen check

After informing your bank, the next crucial step is to request a stop payment on the lost check. This action prevents the check from being processed if someone tries to cash it. Be sure to file a stop payment request for the lost or stolen check. There may be a fee for this service, but it is a small price to pay for the security it provides. Be sure to get a confirmation from the bank that the stop payment has been successfully placed on your bank account.

Filing a police report: When to involve law enforcement for identity theft

If you suspect that your check was stolen, it is important to file a police report with your local police department. This step not only helps in the investigation of the theft, but also provides you with a record of the incident, which can be useful for bank claims and insurance purposes. When filing the report, provide all relevant details, including any suspicions you may have about mail theft or check fraud. Reporting the incident to the appropriate government agency can also be beneficial in cases of identity theft.

Preventing Future Problems: Best Practices for Check Security

Prevention is always better than cure. To avoid losing checks in the future, consider these best practices:

Keep checks in a safe place: Keep your checkbook in a safe but easily accessible place. Keeping it out of sight from prying eyes can prevent potential theft. Consider using a locked drawer or safe for added security.

Use electronic payments: Whenever possible, opt for direct deposit or wire transfers, which are safer and more convenient. Direct deposits not only simplify your payments, but also reduce the risks associated with physical checks, such as mail theft or check fraud. Many financial institutions offer premium accounts with direct deposit options, ensuring that your funds are transferred securely and quickly. In addition, you can earn a higher annual percentage yield on your savings and checking balances based on your direct deposit activity and qualified deposits. To qualify for specific interest rates, you can use direct deposit, which includes payroll, pension or government payments.

Regularly monitor your accounts: Frequently review your bank statements and account activity for unauthorized transactions or signs of check laundering attempts. Set up alerts with your bank or credit union to notify you of any unusual activity. This vigilance is crucial for both your checking and savings balances, helping you detect fraudulent activity early and take immediate action.

Shred old checks: Properly dispose of old or unused checks by shredding them to prevent any misuse. Counterfeit checks are a common problem, and shredding them helps maintain a secure paper trail. Make sure any documents containing your account number or payment information are completely shredded before disposal.

Be cautious with mail: Avoid sending checks through outgoing mail, as this can expose you to the risk of mail theft. Instead, deposit them directly at the post office to ensure they are handled securely. For added security, consider using certified mail for important payments to create a traceable record of your transaction. Alternatively, use P2P transfers or wire transfers to send money to friends, family or anyone with a U.S. bank account, highlighting the speed, simplicity and security of these transactions.

Educate yourself about check fraud: Familiarize yourself with common check fraud schemes, such as check laundering and counterfeit checks. Understanding these threats can help you recognize suspicious activity and protect your finances more effectively.

Protect your account information: Keep your account number, cell phone number and other personal details confidential. Sharing this information carelessly can make you a target for fraud. Always verify the identity of anyone requesting your account details.

By following these steps, you can effectively manage and prevent problems with lost or stolen checks. Remember, acting quickly and keeping your bank informed are key to protecting your finances and preventing someone from attempting to commit fraud using your account information. Adopting these best practices will help you maintain a secure financial environment and give you peace of mind.

Now that you know how to handle lost or stolen checks, it's time to take control of your finances with ease. At Comun.app, we offer secure and easy-to-use solutions so you can manage your money without hassle. Open your account in minutes and start enjoying the benefits!

What is an SSN?

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

Individuals should send their SSN application to the address provided by the Social Security Administration.

Key points about SSNs:

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

What is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is also a nine-digit number, but it is issued by the IRS (Internal Revenue Service) instead of the SSA. Individuals must file Form W-7 to apply for an ITIN. The ITIN is specifically intended for individuals who are required to file U.S. tax returns but are not eligible for an SSN. This includes non-citizens who do not have legal authorization to work in the U.S., foreign investors, and dependents of U.S. citizens or residents.

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

Key points about ITINs:

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

Differences between ITIN and SSN

The main difference between an ITIN and an SSN lies in who can obtain them and for what purposes they are used:

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

ITIN vs. SSN: Why does the difference matter?

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

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

Conclusion

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

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What Today's Bank Customers Want

Today's banking consumers are no longer satisfied with just basic financial transactions. They are looking for seamless digital experiences, personalized services and 24-hour accessibility. With the proliferation of smartphones and internet connectivity, corporate customers expect banking services to be available at their fingertips, anytime, 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 imperative to growing deposits and maintaining customer loyalty. Banks that prioritize easy-to-use interfaces, intuitive mobile apps and responsive customer support are more likely to succeed in creating integrated solutions with customer data. Beyond the transactional aspect, customers value proactive financial advice, personalized product recommendations and one-on-one communication.

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

Technological and Industrial Changes

In banking, the traditional advantages that once distinguished institutions are gradually eroding. With the rise of fintech startups and tech giants entering the financial services space, banks are facing 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 had monopolies in financial services due to their physical presence, regulatory barriers and established trust with customers. However, the advent of digital banking and the proliferation of online-only banks have challenged this status quo. Traditional advantages such as branch networks and long-standing reputations are no longer as significant in a digital age where convenience and efficiency are paramount.

Technological Advances Shaping the Banking Industry

Technological advances are driving profound changes 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, enhance security and improve customer experiences.

Advances in AI and Data Accelerating Transformational Possibilities

AI and data analytics are revolutionizing banking by enabling institutions to gain deeper insights 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 risks.

Seamless Integration of Technology and Platforms is a Top Priority

Seamless integration of technology and platforms is essential for banks to deliver cohesive, omnichannel experiences to their customers. Whether through mobile banking apps, internet banking portals or in-branch interactions, customers expect consistent and intuitive interfaces that facilitate their financial needs seamlessly across multiple touch points.

Adopt Responsible AI (GenAI)

As banks adopt AI and automation, it is crucial to do so responsibly, considering ethical implications and potential biases. Responsible AI, often referred to as 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 analytics are driving transformative possibilities, while seamless integration of technology and platforms is now a top priority. Banks must also embrace responsible Generative AI (GenAI) to stay ahead of the curve.

Banking as a Service (BaaS)

As traditional banking models evolve, Banking as a Service (BaaS) is emerging as a key trend that is reshaping the financial landscape. This section explores key aspects of BaaS, from emerging industry trends to competitive arenas and business models, offering insights into the future of investment 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 allows banks to leverage innovative technologies and expand their service offerings without extensive investment in infrastructure.
• API-Driven Ecosystems: Application Programming Interfaces (APIs) play a central role in BaaS, enabling the seamless integration of banking services into third-party applications and platforms. Open banking systems initiatives around the world are driving the adoption of standardized APIs, fostering a more interconnected financial ecosystem.
• Platformization of Banking: Banking services are moving 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 selected from multiple providers, allowing 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-centric approach. These agile startups leverage technology to deliver superior user experiences and challenge incumbents in key market segments. Such is the case of the Comun app, which offers financial services for immigrants living in the US.
• Integrated Finance: Integrated finance refers to the integration of financial services into non-financial applications, such as e-commerce platforms, transportation applications and social networks. By integrating banking functionalities directly into everyday activities, financial transactions become seamless and frictionless for users.

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A Look at the Biggest Stage: Everyday Banking

• Mobile First SolutionsEveryday banking is increasingly focused on mobile devices, with customers preferring the convenience of managing their finances on the go. Mobile banking applications offer a wide range of functionalities, including account management, bill payments, person-to-person transfers and financial literacy, meeting the diverse needs of customers.
• 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 offer personalized product recommendations, customized 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 enables banks to deliver enhanced customer experiences by leveraging innovative technologies and partnerships. From frictionless onboarding experiences to personalized financial solutions, BaaS empowers customers to achieve 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 capital markets and provide essential financial services to those in need.
• Agility and Innovation: Adopting BaaS enables banks to innovate quickly and adapt to changing market dynamics. By leveraging external expertise and resources, banks can accelerate the development and implementation of new products and services, stay ahead of the competition, and meet changing customer expectations.

Everyday banking remains the biggest stage, 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. In addition, predictions for the future of BaaS in light of these regulatory considerations are discussed.

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 enables banks to 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 channels of communication with regulatory authorities fosters collaboration and transparency, allowing banks to address regulatory concerns and seek guidance on compliance issues. 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, such as open banking initiatives and data protection regulations, have a significant impact on the BaaS ecosystem. Financial service providers must keep abreast of regulatory changes in 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. Complying with complex regulatory frameworks requires substantial investment in resources and expertise, requiring a proactive approach to effectively address regulatory concerns.

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BaaS Future Predictions

• 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 that regulators will focus on enhancing consumer protection, promoting market competition and fostering innovation within the BaaS ecosystem.
• Regulatory Harmonization: As the BaaS landscape continues to evolve, there is a growing need for regulatory harmonization across jurisdictions to facilitate cross-border transactions and ensure a level playing field for market participants. Predictions indicate that 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 that BaaS providers will leverage RegTech solutions to automate compliance processes, enhance regulatory reporting capabilities and improve overall regulatory efficiency.

Investment in regulatory compliance is crucial, as regulatory actions and developments significantly impact BaaS. Predicting future regulatory landscapes helps institutions to be prepared and comply with regulations.

Conclusion

The future of banking services is shaped by technological innovation, changing 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 for improved customer experiences and economic growth.

Regulatory compliance is crucial. Banks must invest in compliance frameworks and anticipate regulatory changes to effectively mitigate risks. 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 age.

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What is the Real Time Payment (RTP) Network?

The Real-Time Payments (RTP) network is an advanced financial infrastructure designed to facilitate instant real-time money transfers. Introduced by The Clearing House in 2017, the RTP network enables the immediate transfer of funds between participating financial institutions. This system operates 24 hours a day, 365 days a year, ensuring that transactions can take place at any time, including weekends and holidays.

Key features of the RTP network include:

• Immediate Funds Availability: Funds are available to the recipient within seconds of initiating the transaction.
• Enhanced Communication: The RTP system supports detailed messaging, allowing senders and recipients to exchange payment information.
• Increased Security: Advanced encryption and authentication measures help protect transactions against fraud.

Key Features of the RTP Network

• Speed: Transactions are completed in seconds, providing immediate availability of funds to the recipient.
• Security: The RTP network employs advanced encryption and authentication protocols to ensure transaction security.
• Transparency: Real-time updates and confirmations allow both parties to track the status of their payments instantly.
• Interoperability: The RTP network is designed to work seamlessly with multiple financial institutions, allowing for broad compatibility and adoption.

The RTP network is designed to support a variety of payment types, including person-to-person (P2P), business-to-business (B2B) and business-to-consumer (B2C) payments, making it a versatile tool for modern financial transactions.

How Do Real-Time Payments Work?

Real-time payments revolutionize the traditional banking experience by enabling instant money transfers. This efficiency is made possible by advanced technology and secure communication protocols. Below is a detailed analysis of how real-time payments work.

Real-Time Payment Processing

The mechanics of real-time payments involve several key steps, which ensure both speed and security:

Payment Initiation

• The sender initiates a payment service through their bank's online platform or a mobile application.
• Essential details such as the recipient's account information, the amount and purpose of the payment are entered.

Validation and Authentication

• The sender's bank validates the payment details and authenticates the sender's identity.
• Verification includes checking that there are sufficient funds in the sender's account to cover the transaction.

Payment Transmission

• Once validated, the payment is transmitted through the RTP network.
• The RTP network facilitates real-time data exchange between the sender's and recipient's banks.

Receiving Bank Processing

• The receiving bank receives the payment instructions and verifies their authenticity.
• The receiving bank then credits the recipient's account with the specified amount.

Real Time Confirmation

• Both the sender and the recipient receive real-time notifications confirming the successful transaction.
• This transparency ensures that both parties are aware of the payment status immediately.

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Technical Infrastructure Behind Real-Time Payments

The smooth operation of real-time payments depends on a robust technical infrastructure. Key components include:

• Payment Gateways: Facilitate the transfer of payment data between banks and the RTP network.
• APIs (Application Programming Interfaces): Allow banks to integrate their systems with the RTP network, ensuring seamless communication and transaction processing.
• Encryption Protocols: Protect transaction data during transmission, preventing unauthorized access.
• Fraud Detection Systems: Advanced algorithms and machine learning models monitor transactions in real time to detect and prevent fraudulent activity.

Real-Time Payment Security Measures

Ensuring the security of real-time payments is critical. Several layers of security are implemented to protect transactions:

• Multifactor Authentication (MFA): Users are required to verify their identity using multiple authentication methods, such as passwords, biometrics or one-time codes.
• Encryption: All transaction data is encrypted during transmission to prevent interception and unauthorized access.
• Tokenization: Sensitive information, such as account numbers, is replaced with unique tokens that can only be interpreted by authorized parties.
• Continuous Monitoring: Transactions are continuously monitored in real time to detect any unusual patterns that may indicate fraudulent activity.

Real-Time Payment Use Case Examples

Real-time payments are used in a variety of scenarios, improving the efficiency of financial transactions in different sectors:

• Person-to-Person (P2P) TransfersFriends and family can send money to each other instantly, regardless of the bank they use.
• Business-to-Business (B2B) Payments: Companies can pay suppliers and partners immediately, improving cash flow management and business operations.
• Business-to-Consumer (B2C) Payments: Businesses can pay employees, contractors or service providers instantly, ensuring timely compensation.
• E-Commerce Transactions: Online retailers can receive payments instantly, enabling faster order processing and transfer .

Advantages of Real Time Payments

The benefits of real-time payments are multifaceted and offer significant advantages over traditional payment methods:

• Speed: Instant transactions eliminate waiting periods for funds to become available.
• Convenience: Transactions can be made anytime, from anywhere, without the constraints of banking hours.
• Efficiency: Simplifies financial transactions for both individuals and businesses, reducing the time and effort required to process payments.
• Transparency: Immediate notifications and confirmations keep all parties informed in real time.

Real-time payments represent a significant advancement in the financial industry, offering a seamless, secure and efficient way to transfer funds. As the adoption of real-time payment systems continues to grow, the benefits will become increasingly widespread, transforming the way we handle financial transactions.

RTP vs. Other Payment Types

Real-time payments (RTP) offer a distinct advantage over traditional payment methods by providing immediate transaction processing and funds availability. To understand the full scope of the benefits of RTPs, it is useful to compare them to other common payment types: Automated Clearing House (ACH) transfers and Immediate Payments.

RTP vs. ACH

Automated Clearing House (ACH) transfers have been a mainstay in financial transactions for decades. However, RTPs offer several enhancements that make them a superior option in many scenarios. Here's a comparison:

• Speed:
  • RTP: Transactions are processed instantly, with funds available to the recipient in seconds.
  • ACH: Transactions generally take one to three business days to settle, as they are processed in batches.
• Availability:
  • RTP: Operates 24 hours a day, 365 days a year, allowing transactions at any time, including weekends and holidays.
  • ACH: Limited to business days and hours, no processing on weekends or holidays.
• Cost:
  • RTP: Although costs may vary, RTP transactions typically have competitive fees, which may be lower than those of accelerated ACH services.
  • ACH: Generally lower cost for standard transactions, but accelerated ACH transfers may incur higher fees.
• Transparency:
  • RTP: Provides real-time transaction confirmations and detailed messaging capabilities, enhancing transparency.
  • ACH: Notifications are often delayed, and detailed transaction messages are not as robust.
• Use Cases:
  • RTP: Ideal for urgent payments, peer-to-peer (P2P) transfers and commercial transactions requiring immediate availability of funds.
  • ACH: Suitable for regular payroll, bill payments and mass transactions where immediate availability is not critical.

RTP vs. Immediate Payments

Immediate payments, such as those facilitated by credit card networks or certain digital payment services, also offer fast processing times. This is how they compare to RTP:

• Processing Time:
  • RTP: Transactions are settled instantly, providing immediate availability of funds.
  • Immediate Payments: Often processed in seconds or minutes, but settlement times may vary by service provider.
• Cost:
  • RTP: Generally more cost effective, especially for high value transactions, as fees are usually lower compared to credit card processing fees.
  • Immediate Payments: Credit card transactions may incur higher fees due to processing fees and interchange fees.
• Security:
  • RTP: Employs advanced encryption, multi-factor authentication and continuous monitoring for fraud detection.
  • Immediate Payments: Security measures vary by provider, but generally include encryption and fraud monitoring.
• Usage:
  • RTP: Used for a wide range of transactions, including P2P transfers, B2B and B2C payments.
  • Immediate Payments: Commonly used for consumer transactions, online purchases and small business payments.
• Availability:
  • RTP: Always available, regardless of time or day.
  • Immediate Payments: Availability depends on the service provider, but many offer near-instant processing.

By understanding these comparisons, it is clear that RTPs bring a level of efficiency, convenience and security that traditional payment methods cannot match. As a result, RTPs are gaining popularity for both personal and commercial financial transactions.

Learn more about the different types of wire transfers

Instant Transfer Applications

In addition to traditional banking channels, instant transfer applications have emerged as popular tools to facilitate real-time money transfers. These applications leverage the Real Time Payments (RTP) network and other real-time payment technologies to provide users with fast and convenient ways to send and receive funds. Let's explore some of the most commonly used instant transfer applications and how they work.

Popular Instant Transfer Applications

• Venmo: A widely used application that allows users to send and receive money with friends and family, with a social network-like interface for convenience.
• Zelle: Integrated with major banks, Zelle offers direct bank-to-bank transfers, making it convenient for users with accounts at participating financial institutions.
• Comun AppComun is a newcomer to the instant transfer app market, gaining attention for its user-friendly interface and focus on financial services driven by the immigrant community. With Comun, users can send money instantly to friends, family and businesses, while accessing a range of features designed to financially empower communities.

These applications have made instant transfers accessible to a wider audience, simplifying the process of sending and receiving money.

Conclusion

Real-time money transfers, facilitated by the RTP network and instant money transfer applications such as Venmo, Zelle and Comunoffer unparalleled speed, convenience and security in financial transactions. With immediate availability of funds, 24-hour operation and user-friendly interfaces, these technologies are transforming the way we manage our finances. Embracing real-time transfers opens up new possibilities for efficient and inclusive financial interactions, empowering individuals and businesses around the world.

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How to obtain an ITIN

Obtaining an ITIN involves filing IRS Form W-7 along with documentation proving your foreign status and identity. This form can be filed with your federal tax return or separately. The IRS processes the application and, once approved, issues the ITIN, which you can then use for tax filing and other financial purposes.

1. Enables federal tax filing

One of the main benefits of having an ITIN is the ability to file a federal income tax return. The IRS requires anyone earning income in the U.S. to file taxes, and the ITIN allows individuals who do not qualify for an SSN to fulfill this obligation. Filing a tax return is essential not only to comply with U.S. tax laws, but also to claim refunds or credits that may be due. This includes tax benefits such as the Child Tax Credit and the Earned Income Tax Credit, which can provide significant financial relief.

2. Access to credit and financial services

Although an ITIN does not replace a Social Security Number, it helps non-citizens access financial services, including credit. Many banks, credit unions and other financial institutions accept an ITIN as a valid form of identification to open accounts and apply for credit cards or loans. Establishing a credit history is crucial to building financial stability, and an ITIN can serve as a step toward greater financial inclusion.

For example, Comun is a financial service that recognizes the importance of inclusion by allowing people with an ITIN to open accounts and access essential banking services. Establishing a credit history is crucial to building financial stability, and an ITIN, along with a Comun account, can be a step toward greater financial inclusion.

3. Facilitates commercial operations

For entrepreneurs and small business owners, having an ITIN is vital to operating a business in the U.S. The ITIN can be used to file business taxes, apply for an Employer Identification Number (EIN) and conduct other business-related activities that require identification. In addition, by filing a tax return with an ITIN, business owners can claim deductions and credits that reduce their taxable income, leading to potential savings and reinvestment opportunities.

4. Supports legal residency and immigration processes

Although an ITIN does not grant legal residency or citizenship, it can play an important role in immigration-related processes. Consistently filing taxes using an ITIN can demonstrate good moral character, a factor considered in some immigration cases. In addition, an ITIN is often required when filing certain immigration forms or supporting documents, making it an essential part of the application process.

5. Helps establish identity and secure income

In the absence of an SSN, an ITIN can help establish your identity for a variety of purposes, such as securing employment income or investments. Although it does not authorize work, the ITIN is recognized by many entities, including financial institutions and government agencies, as a valid identification number. This recognition helps non-citizens access needed services and secure their income in a legal and documented manner.

6. Allows access to state services and benefits

Although not universally accepted, in some states, having an ITIN can help individuals access certain state services and benefits. This includes applying for a driver's license, obtaining health insurance or qualifying for in-state tuition rates at public colleges. These benefits contribute to the overall financial and social well-being of ITIN holders, further promoting their integration into the community.

7. Protects against identity theft

Filing taxes with an ITIN helps the IRS process your tax return accurately and reduces the risk of identity theft associated with tax fraud. By obtaining an ITIN and using it consistently for tax purposes, you ensure that your tax data is securely linked to your identification number, minimizing the chances that someone else will file a tax return in your name.

Conclusion

The ITIN is a powerful tool for non-citizens in the U.S., providing access to tax filing, financial services and various other benefits. While it does not have the same privileges as a Social Security Number, the ITIN is essential for meeting tax obligations, establishing a financial identity and integrating into the U.S. financial system. Understanding and utilizing the benefits of an ITIN can significantly improve the financial stability and inclusion of those who do not qualify for an SSN.

Whether you're filing a tax return, looking to build credit or establishing a business, having an ITIN opens doors to opportunities that contribute to long-term financial success. By taking advantage of the benefits associated with an ITIN, non-citizens can better navigate the complexities of the U.S. financial landscape.

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The rise of digital personal finance applications is growing every day among users in the United States. According to recent data, 8 out of 10 Americans have embraced the digital economy, using financial apps for shopping, digital payments, online banking and more. 

Cash App is an effective alternative to facilitate the control of personal finances. In 2024, it recorded 57 million monthly active users and $16.2 billion in revenue. 

If you are curious to know what Cash App is, how it works, all its benefits and also its commissions, here are all the details so you can decide if it is the best option to meet your needs. 

What is Cash App and what is it for?

Cash App is an alternative to traditional banking that works through a mobile financial services application. Its operation is very versatile, since it not only allows sending and receiving money, but also making purchases and receiving payroll deposits. 

The application was developed by Block Inc. (formerly Square Inc.) and seeks to offer a comprehensive and more accessible service through digital solutions. 

To open a Cash App account you must meet certain requirements, such as having a SSN (Social Security Number) and a U.S. bank account. 

Cash App: how it works, what features it offers and how much it charges

Cash App is available through its official mobile application, in which you will have to register and verify to access all the available functionalities. Once you have done so, you will be able to link a bank account, if needed. 

You will also have a Cash Tag: a unique user name that will allow you to send and receive money easily. 

These are the main functionalities offered by the Cash App application:

transfer and receipt of money

Cash App allows instant transfers between app users free of charge (Free Instant Transfers; standard network fees may still apply).

Cash Card

It is a free debit card linked to your balance. It allows you to shop online, in physical establishments, and also make cash withdrawals at ATMs. 

QR Code

Pay directly in physical stores through a QR code. 

Cash App Pay

It is a payment method that allows users to make transactions in online stores and directly in the application. 

Cash Boosts

You will be able to get discounts in selected physical and online stores.

Costs for using Cash App

Although many of the Cash App features are free of charge, such as account pasturing, use of Cash Cards and transfers between Cash App accounts, below is a table with some of the costs and fees associated with the aforementioned features:
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Cash App registration requirements

If you want to use Cash App to control your finances, make sure you meet the following requirements: 

Have a telephone number in the United States

You can also use an email to verify your identity. 

Residence in the United States or England

Cash App is only available in the United States and the United Kingdom. The application and information are available in English only. 

Have a bank account

It is recommended if you want to have access to all the functions of the application. 

Identity verification

This will give you access to features such as sending or receiving more than 1,000 USD over a 30-day period and applying for the Cash Card.

But remember that in order to perform the identity verification you need to: 

• Full name
• Date of birth
• Social Security Number (SSN)

How secure is Cash App: 9 important considerations

The issue of security is one of the most relevant in relation to financial services applications. You should always verify that your provider has the necessary measures in place to keep your assets and personal data safe. 

Cash App has the following security measures, among others: 

Multifactor authentication

Cash App requests identity authentication via email or SMS. In addition, it allows you to activate a PIN or biometrics to log in. 

End-to-end encryption

Your personal data stored in Cash App is secured through TLS/E2E.

System for detection and prevention of illicit activities

Cash App has implemented technologies trained to detect unusual behavior and prevent fraud, such as machine learning and algorithms. 

Subsequent monitoring of payments

The application has an additional monitoring system to double check and detect unusual activity. 

Although the above features provide some certainty as to the security measures of the application, it is always important to take some considerations into account: 

Disables automatic login

To prevent an outsider from accessing your account without your authorization, avoid using automatic login. Instead, use strong, unique passwords and enable 2-step authentication. 

Beware of frauds 

Be alert to scams, whether by phone or e-mail. Never give out personal information or passwords by these means. If you need to contact application support, do so through official means. 

Keep active alerts

Cash App allows you to receive transaction alerts directly on your cell phone. Be sure to keep them active. 

Verify the data before making transfers

Send money only to people you know and verify their information before confirming the operation, since once the money is sent, it is not possible to recover it. 

Activate the PIN for transactions

You have the option to activate the PIN or biometric data to confirm your transfers before making them, and prevent the use of your application by third parties in case of theft or loss. 

Looking for more than a payment app? Comun is your financial ally in the U.S.

There is no doubt that Cash App is a popular alternative for those looking for a fairly comprehensive and easy-to-use financial solution. 

But if you are looking for a financial ally that offers a simple and secure experience, with customer service and a platform also available in Spanish, we introduce you to Comun

Comun goes beyond traditional limitations, so that immigrant communities in the United States have access to quality financial services, hassle-free. With Comun you can:

• Receive and send money conveniently, hassle-free and without the need for a traditional bank account. 
• Open your account in Comun with a qualified official ID from your country of origin.
• Get a simple mobile application for hassle-free, everyday international money transfers. 

Open your Comun account today and break down traditional financial services, language and cultural barriers.

Frequently asked questions

If you still have doubts about what Cash App is for and its features, please check our frequently asked questions. 

What are Cash Boosts in Cash App?

These are instant discounts available on the Cash Card. To activate them, log in to the mobile app and select "Cash Card", followed by "Add Boost" and "Save Boost". Select the discount of your interest and it will be applied when you pay with your debit card. 

What happens if I receive a lot of money through Cash App?

Some required checks may be triggered above $1,000 USD.

What is the maximum amount that can be sent by Cash App?

1000 USD over 30 days for non-verified users; if you verify your user, you can increase this limit up to 20,000 USD.

What is Cashtag in Cash App?

It is a unique username that is used so that other users of the application can send you money. It starts with the $ symbol followed by an identifier. 

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

The FDIC report also found that 9.3 percent of Hispanic households are unbanked, meaning that no one in the household has a checking or savings account at a financial institution. Being unbanked can result in limited access to certain financial products and services, such as savings accounts that offer investment opportunities and insurance options.

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

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

How much customers can save by using a service like Comun in a year:

Cost of a traditional bank account: $1,176

The cost of not being banked: $196

How much customers can save in five years by using a service like Comun:

Cost of traditional bank account: $5,881

The cost of being unbanked: $981

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Additional comments

In addition to direct costs such as check cashing or money order fees, the unbanked also incur many indirect costs, such as:

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

Methodology

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

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

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Understanding the ITIN: Essential for Non-Citizens

Navigating the U.S. tax system can be intimidating, especially for non-citizens. However, the IRS offers a helpful tool: the Individual Taxpayer Identification Number (ITIN). Understanding the ITIN is an important step for non-citizens in the U.S. who need to comply with tax laws, but are not eligible for a Social Security Number (SSN). This article will explain what an ITIN is, why it is important, who is eligible, and how to apply.

What is an ITIN?

An ITIN is a tax processing number issued by the Internal Revenue Service (IRS). It consists of nine digits, similar to an SSN, and is used by non-citizens who are required to file U.S. tax returns but do not qualify for an SSN. The ITIN ensures that individuals comply with U.S. tax laws, even if they do not have legal immigration status.

Why is the ITIN important?

For non-citizens, the ITIN is essential because it allows them to comply with their tax obligations. Without an ITIN, these individuals would not be able to file tax returns, which could lead to penalties or problems with their immigration status in the future. In addition, having an ITIN can be beneficial for other purposes, such as opening a bank account, obtaining loans or even applying for certain types of visas. It is a critical tool for financial inclusion and stability for non-citizens living and working in the United States.

Who is eligible for an ITIN?

Eligibility for an ITIN is relatively broad. The ITIN is primarily intended for non-citizens who are required to file a tax return but are not eligible for an SSN. This includes:

1. Nonresident aliens who are required to file a U.S. tax return.
2. U.S. resident aliens (based on the number of days present in the U.S.) filing a U.S. tax return.
3. Dependents or spouses of U.S. citizens or resident aliens who are not eligible for an SSN.
4. Dependents or spouses of nonresident alien visa holders who are not eligible for an SSN.

An ITIN does not grant the right to work in the U.S. nor does it qualify a person for Social Security benefits; its purpose is strictly for tax filing purposes.

How to apply for an ITIN?

To apply for an ITIN, you must begin by completing IRS Form W-7, also known as the 'Application for IRS Personal Taxpayer Identification Number'. You will also need to provide documents confirming your identity and foreign status, such as a passport or a combination of other acceptable documents. The completed application, along with the required documentation, can be submitted by mail, in person at an IRS office, or through an IRS-authorized Certified Acceptance Agent (CAA).

1. Complete Form W-7: Provide personal information, including your name, mailing address, and reason for applying for an ITIN.
2. Provide original documents: Send documents that prove your identity and foreign status. These may include a passport, foreign driver's license or birth certificate.
3. Submit the application: You can submit your application by mail to the IRS, through an IRS office or through a CAA.
4. Wait for processing: The IRS generally takes six to ten weeks to process the application and issue the ITIN.

Common misconceptions about the ITIN

There are several misconceptions about the ITIN that can cause confusion:

• ITINs do not confer legal status: The ITIN is only a tax processing number. It does not confer immigration status or the right to work in the US.
• ITINs are not a path to citizenship: While having an ITIN is necessary for filing taxes, it does not directly contribute to obtaining citizenship or a green card.
• ITINs are not permanent: ITINs expire if they are not used on a federal tax return for three consecutive years. In addition, certain ITINs issued before 2013 may need to be renewed.

ITIN-like concepts in the world

The concept of an ITIN, while specific to the U.S., has parallels in several countries around the world. Many nations have similar systems designed to ensure that non-citizens and others without a standard national identification number can meet their tax obligations. Here's a look at some comparable systems in different regions:

• Latin America: RUT and CPF
• In Latin America, several countries have tax identification numbers for residents and non-residents alike. For example:
• • Chile: The RUT (Rol Único Tributario) is a unique tax identification number used by both residents and non-residents. Like the ITIN, the RUT is essential for filing taxes, opening bank accounts and performing various financial transactions. Non-residents who have income from Chilean sources are required to obtain a RUT.
  • Brazil: The CPF (Cadastro de Pessoas Físicas) serves as a tax identification number for citizens and non-citizens. Foreigners who need to engage in financial activities in Brazil, such as owning property or receiving income, must obtain a CPF, even if they do not reside in the country.
• Asia: PAN and NRIC
• In Asia, countries such as India and Singapore have their versions of tax identification numbers:
• • India: The PAN (Permanent Account Number) is a ten-digit alphanumeric identifier issued to residents and non-residents. It is similar to the ITIN in that it is required to file taxes and conduct financial transactions in India. Foreigners with sources of income in India need a PAN to comply with tax regulations.
  • Singapore: The NRIC (National Registration Identity Card) number is used for residents, while non-residents are assigned a FIN (Foreign Identification Number) for tax and legal purposes. The FIN is required for non-citizens working in Singapore, ensuring that they comply with the country's tax laws.
• Europe: NIE and NIF
• In Europe, many countries have specific identification numbers for non-citizens, similar to the ITIN:
• • Spain: The NIE (Número de Identificación de Extranjero) is an identification number assigned to non-citizens in Spain. It is essential for tax purposes, purchasing property and setting up a business. The NIE is analogous to the ITIN in its function of helping foreigners comply with their legal and financial obligations in Spain.
  • Portugal: The NIF (Tax Identification Number) is used for tax identification in Portugal. Non-residents who need to perform financial activities or meet tax obligations in Portugal are required to obtain a NIF, similar to how non-citizens in the U.S. use an ITIN.

The ITIN is a unique feature of the U.S. tax system, but its purpose is mirrored in many other countries around the world. Whether it is the RUT in Chile, the PAN in India or the NIE in Spain, these identification systems play a crucial role in ensuring that non-citizens can engage in financial activities and meet their tax obligations.

Do you need an ITIN to open an account at Comun?

No, you do not need an ITIN (Individual Taxpayer Identification Number) to open an account at Comun! Comun is designed to be accessible to individuals who may not have traditional forms of identification, such as an SSN (Social Security Number) or ITIN. Instead, Comun allows users to open an account using alternative forms of identification, such as a passport, consular ID or other documents that verify identity and residency.

This approach aligns with Comun s mission to provide financial inclusion for all, regardless of immigration status. By not requiring an ITIN or SSN, Comun ensures that more people, including those in the immigrant community, can access banking services and manage their finances securely and conveniently.

Conclusion

The ITIN is a vital tool for noncitizens navigating the U.S. tax system. It allows them to meet their tax obligations, access financial services and participate more fully in economic life. Understanding the purpose and process for obtaining an ITIN can help noncitizens comply with U.S. tax laws and avoid potential legal problems. Whether you are new to the U.S. or have been living here for some time, knowing the ITIN and its importance is essential for financial stability and legal compliance.

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