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TikTok has become one of the world’s most powerful platforms, with over a billion active users and a creator economy that’s redefining how people earn a living. Every day, new voices go viral, trends spark overnight, and short videos evolve into long-term careers.

If you’ve ever wondered whether it’s possible to make real money on TikTok, you’re not alone. For aspiring creators, the earning potential ranges from a few extra dollars a month to full-time income—and in some rare cases, millions. Knowing where most creators actually fall on that scale can help set realistic goals. 

In this Remitly guide, we’ll break down how TikTokers make money, share real examples of what different types of creators earn, and explain the key factors that influence their income. You’ll also find practice steps to start building your own presence and explore whether TikTok could be a meaningful income stream for you. 

TikTok’s multiple revenue streams explained

Most TikTokers don’t earn from just one source. Instead, they piece together income from several different streams—both on and off the app. This kind of diversification is key to building financial stability and making the most of an engaged audience.

TikTok Creator Fund

The TikTok Creator Fund was one of the app’s first efforts to pay creators directly for their content. While TikTok has started shifting toward newer monetization models, the Fund still offers a helpful benchmark for what early earnings can look like.

Payouts typically ranged from $0.02 USD to $0.04 per 1,000 views—meaning a video with a million views might earn between $20 USD and $40. Actual earnings depended on factors like video engagement, region, and whether the content met TikTok’s guidelines.

To qualify, creators needed at least 10,000 followers and 100,000 video views over the past 30 days. It wasn’t a huge income source for most, but for many, it was a starting point.

Brand partnerships and sponsored posts

For many creators, brand deals are where the real money is. Companies pay influencers to promote their products or services, and those rates can vary a lot—based on follower count, engagement, niche, and reputation. 

• Micro-influencers might earn a few hundred dollars per post.

• Mid-tier creators often charge several thousand. 

• Top creators can make $10,000 USD or more for a single collaboration.

These partnerships come in different forms: one-time posts, multi-video campaigns, or even long-term ambassadorships. As a creator’s audience grows—and their influence strengthens—brands are often willing to pay more for access to that reach.

TikTok Live gifts

When creators go live on TikTok, viewers can send virtual gifts as a show of support. These gifts have real monetary value—creators can convert them into actual earnings, though TikTok takes a percentage.

Earnings from live streams vary widely:

• Smaller creators might earn a few dollars per session.
• Popular streamers with loyal audiences can earn hundreds—or even thousands—during special events or viral moments.

While not every live will bring in big income, consistent streaming and audience engagement can add up over time.

TikTok Shop and affiliate marketing

TikTok Shop gives creators a built-in way to promote and sell products directly on the platform. Through affiliate marketing, creators earn a commission when someone makes a purchase via their video or livestream links.

Commission rates vary by brand and product category, but creators in niches like beauty, home décor, lifestyle, and tech often see higher conversions. If you’re regularly recommending products your audience already trusts, this can be a strong source of passive income—even for smaller accounts.

Merchandise and external sales

Many TikTokers also branch out beyond the app by building income streams elsewhere. 

Common side hustles include:

• Selling branded merchandise

• Launching digital products (like templates, eBooks, or presets)

• Starting paid communities on platforms like Patreon or Discord

• Growing on YouTube or Instagram to expand reach and revenue

These external ventures help creators diversify their income and avoid relying too heavily on TikTok alone—especially important as algorithms and platform rules evolve.

Real TikTok earnings: what creators actually make

TikTok earnings vary widely depending on factors such as follower count, engagement, and niche. Here’s a general idea of what creators at different levels might earn:

• Micro-influencers (10K–100K followers): Often earn between $100 USD and $1,000 per month, mostly through brand deals or affiliate links.

• Mid-tier creators (100K–500K followers): Can bring in several thousand dollars monthly from sponsorships, live gifts, and product promotions.

• Top creators (1M+ followers): May earn $10,000+ USD per post, with annual incomes in the millions if they have strong brand partnerships and external ventures.

Big names like Charli D’Amelio (reportedly earning $17.5M USD annually) and Addison Rae ($8.5M) show what’s possible at the highest level—but those cases are rare. Most creators earn much less, and even those with large followings often combine several income streams to reach full-time earnings.

Compared to platforms like YouTube or Instagram, TikTok may offer faster growth, but lower payouts per view. That makes diversifying income essential for long-term success.

Key factors that determine how much TikTokers make

Not all TikTok creators earn the same—even with similar follower counts. These key factors can influence how much you actually make on the platform:

Follower count

The more followers you have, the more earning opportunities tend to open up—especially for brand deals and affiliate marketing. But it’s only one part of the equation.

Engagement rate

Brands care more about how engaged your audience is—likes, comments, shares—than your raw follower number. A smaller, active audience can be more valuable than a large but passive one.

Your niche

Some niches attract higher-paying deals than others. Creators focused on finance, tech, fitness, or beauty often see more brand interest than those in general entertainment, because their content aligns with products people are ready to buy.

Where you live

Your location affects how much you can earn—especially from programs like the Creator Fund. For example, creators in countries like the US or the UK often earn more per view than those in regions with lower advertiser demand.

Consistency

Posting regularly helps grow your audience and stay visible to the algorithm. It’s not just what you post—but how often.

Breaking down TikTok creator fund payments

Many creators joined the Creator Fund hoping it would lead to steady income—but the reality often fell short. To qualify, you needed:

• 10,000 followers
• 100,000 video views in the past 30 days
• Full compliance with TikTok’s community and content guidelines

These thresholds made the program feel accessible, especially for up-and-coming creators. But earnings were based on a vague formula that considered factors like video views, engagement, region, and broader platform trends.

Because the payment pool didn’t grow alongside the number of eligible users—and the payout model lacked transparency—many creators found their earnings surprisingly low. A video might rack up views, but bring in just a few dollars.

Payments also differed by region. Creators in countries with stronger advertising markets tended to earn more. Here’s a rough comparison of estimated payouts for one million views:

Country	Estimated earnings (1M views)	Notes
United States	$20–$40 USD	Higher advertiser demand boosts earnings
United Kingdom	$15–$35 USD	Slightly lower, but still competitive
Brazil	$5–$15 USD	Lower advertising market means smaller payouts

These geographic disparities caused frustration—especially for creators whose content performed well but earned far less due to location.

In response to this feedback, TikTok has begun phasing out the Creator Fund in favor of new programs that reward longer, high-quality videos. The goal: make TikTok more competitive with platforms like YouTube, where creators typically earn more for long-form content.

Brand partnerships: where the real money is

For many creators, brand deals are the most profitable and consistent source of income. Sponsored post rates vary, but here’s a rough range:

• Smaller creators (under 10K followers): around $100 USD per post
• Mid-tier creators: can earn $1,000–$5,000 USD per post
• Top creators (500K+ followers): often charge $10,000+ USD, depending on engagement

The most common types of partnerships include:

• Product gifting: Free products in exchange for content—usually unpaid

• Paid posts: Flat-rate sponsorships to feature a product or service

• Long-term partnerships: Brand ambassadorships with recurring income and multi-post campaigns

If you’re hoping to land more brand deals, focus on:

• Sharpening your niche and content style
• Keeping a professional email in your bio
• Highlighting your most successful videos
• Maintaining a clear, consistent presence across platforms

When brands look for new creators, they’re not just looking at follower count—they’re looking at fit, content quality, and audience trust.

Start your TikTok monetization journey

Earning money on TikTok isn’t just for viral stars. Whether you’re aiming to supplement your income or build a full-time creator career, there are multiple paths to explore.

Here’s where to start:

• Learn the platform: Study what works in your niche and stay current with trends.
• Post consistently: Regular, high-quality content builds trust and engagement.
• Experiment with income streams: Try affiliate links, live gifts, brand outreach, or even your own merch.
• Track your growth: Use analytics tools to measure what’s resonating and adjust as you go.

Like any income stream, TikTok monetization takes time and effort—but it also offers creative freedom and flexibility. And with new features like TikTok Shop and evolving creator reward programs, the earning potential continues to grow.

If you’re ready to begin, take the first step by setting up your TikTok profile for success—and exploring more Remitly guides on side hustles, online income, and building financial confidence as an immigrant.

FAQs

How much do TikTokers make per view?

TikTok’s Creator Fund typically paid $0.02 to $0.04 USD per 1,000 views, though rates varied by region and engagement. Other monetization methods—like brand deals or affiliate marketing—can offer higher per-view value, depending on your niche and audience.

How many followers do you need to start making money on TikTok?

To join the Creator Fund, you need at least 10,000 followers and 100,000 views in the past 30 days. However, many creators start earning through brand partnerships and affiliate links with as few as 1,000–5,000 followers if they have strong engagement.

Do TikTokers get paid for likes or comments?

No. TikTok doesn’t directly pay for likes or comments. However, higher engagement boosts your visibility—and that can lead to more views, better brand deals, and stronger earnings overall.

How much do TikTok live streamers make from gifts?

Live streamers can earn a share of the value of virtual gifts sent by viewers. Payouts vary, but popular streamers sometimes earn hundreds of dollars per session, especially during themed events or viral moments.

Can you make a living as a TikTok creator?

Yes, but it often requires combining income from several sources—like sponsorships, product sales, and affiliate links. Full-time creators typically invest heavily in content quality, audience engagement, and platform strategy.

Have you ever looked at a $45K-a-year salary offer and wondered what it really means for your day-to-day life? If you’ve been asking yourself, “How much is $45,000 a year per hour?” and what it might look like after taxes, you’re not alone.

Knowing how to convert an annual salary into an hourly rate can help you compare job offers, plan your finances, and understand your earning potential. That’s why we’ve created this Remitly guide. We’ll walk you through the math, explain key factors like taxes and typical work hours, and share tips to help you manage your money effectively.

The simple math: $45,000 USD a year to an hourly rate

The most common way to calculate your hourly wage from a salary is by using the 40-hour workweek as a baseline. This standard assumes you work 52 weeks a year, giving you a total of 2,080 work hours annually.

To find your hourly rate, simply divide your salary by those hours:

$45,000 USD ÷ 2,080 = $21.63 USD per hour

This number represents your gross hourly income, before deducting taxes, insurance, or retirement contributions. Keep in mind that actual hours worked may vary if you take unpaid leave or have overtime. It’s a useful benchmark for seeing how your pay compares to local wage standards and other job offers.

But what’s your take-home pay? A look at post-tax income

A $45,000 salary may sound great, but the amount that actually lands in your account each payday is different. After taxes and mandatory deductions, your take-home pay is usually lower than your gross salary.

Here’s what typically gets deducted from your paycheck:

• Federal income tax: The US tax system is progressive, meaning you’re taxed at different rates as your income increases. Most taxpayers qualify for a standard deduction, which is a set amount the government lets you subtract from your income before calculating your taxes. In 2025, a single filer can deduct $15,750 (set to increase to $16,100 in 2026). After this deduction, someone earning around $45,000 would likely owe around $3,400 in federal income tax. Your exact amount can vary depending on filing status, tax credits, and other deductions. 
• State income tax: Not all states collect income tax, but some do. Rates vary widely, from 0% in states like Florida and Alaska to as much as 13% in others. Your location will play a big role in how much you take home.
• Federal Insurance Contributions Act (FICA) taxes: These are the payroll taxes that fund Social Security and Medicare. They’re a flat 6.2% for Social Security and 1.45% for Medicare, totalling 7.65% of your income. The amounts are taken from your income before federal tax is applied.

Here’s how that might look in real numbers:

Deduction type	Estimated rate	Annual amount
Federal income tax	Progressive	$3,416
State income tax	0%-5%	$0-$2,250 (but unlikely to be this high due to pre-tax deductions that reduce the taxable amount)
Social Security	6.2%	$2,790
Medicare	1.45%	$653
Total deductions	—	$6,859-$9,109

With these deductions, your estimated take-home pay comes to about $35,891 per year or roughly $17.25 per hour based on a standard 2,080-hour work year. 

Keep in mind that your exact take-home pay will vary based on your location, tax situation, deductions, and benefits. However, this example provides a realistic picture of what you’ll actually earn after taxes, helping you plan your budget and manage expenses. 

How many hours you work matters

Your hourly rate depends not just on your salary but also on how many hours you actually work. Even with a fixed annual salary, your true hourly earnings can vary based on overtime, part-time schedules, or paid time off.

Part-time work

If you work fewer hours than the standard 40 hours per week, your effective hourly rate increases because you’re earning the same salary for less time worked. For example, if you earn $45,000 a year but only work 20 hours per week, your hourly rate would be:

45,000 ÷ 1,040 hours = $43.27 per hour

While salaried part-time positions are rare, this example clearly shows how reducing the number of hours can increase what each hour is worth.

Working overtime without additional pay

On the flip side, working more than 40 hours a week without extra compensation lowers your effective hourly rate. For example, if you work 50 hours per week all year, that’s 2,600 hours annually:

45,000 ÷ 2,600 hours = $17.31 per hour

This shows that putting in extra hours without additional pay reduces how much you earn for each hour worked.

Including Paid Time Off (PTO)

Paid vacation and holidays can boost your effective hourly rate since you’re paid for time you don’t actually work. For instance, if your salary includes two weeks of PTO, you’d work about 2,000 hours a year instead of 2,080:

45,000 ÷ 2,000 hours = $22.50 per hour

In other words, your pay stays the same, but you earn more for each working hour.

Creating a budget on a $45,000 salary

Managing your finances on a $45,000 salary starts with knowing your take-home pay and deciding how to spend it wisely. A simple budgeting framework is the 50/30/20 rule, which divides your income into needs, wants, and savings or debt repayment.

How the 50/30/20 rule works for a $45,000 salary

Here’s an example of how a $3,000 monthly take-home pay might be divided using the 50/30/20 formula:

Category	Percentage	Amount
Needs (rent, utilities, food)	50%	$1,500
Wants (entertainment, dining)	30%	$900
Savings and debt repayment	20%	$600
Total	100%	$3,000

 

50% for needs: This goes toward essentials like rent or mortgage, utilities, groceries, transportation, and insurance. These are expenses that keep your life running smoothly and usually can’t be avoided.

30% for wants: Discretionary spending for things that bring enjoyment, like dining out, entertainment, hobbies, and subscriptions. This category allows room for lifestyle flexibility without overspending.

20% for savings or debt repayment: This includes contributions to an emergency fund, retirement accounts, or paying down debts like student loans or credit cards. Building savings and reducing debt helps contribute to long-term financial health.

Practical tips for budgeting on $45,000 a year

Living on a $45,000 salary is completely manageable with the right approach. These tips can help you budget smarter and make the most of your money.

• Track your expenses: Keep a record of all your spending for at least a month to spot patterns and identify areas where you may be able to cut back.
• Automate savings: Set up automatic transfers to a savings account or retirement funds to make savings effortless.
• Prioritize high-interest debt: Focus on paying off credit cards or loans with the highest interest first to reduce long-term financial strain.
• Separate needs and wants: Clearly distinguish essential expenses from discretionary spending to avoid overspending on non-essential items.
• Plan for irregular costs: Include seasonal or occasional expenses like holidays, insurance premiums, or car maintenance to prevent surprises.
• Use budgeting tools: Apps like Mint, YNAB, or PocketGuard, or even a simple spreadsheet, can help you track spending, visualize progress, and stay accountable.
• Set financial goals: Define both short-term and long-term goals to guide how you spend and save.
• Negotiate bills where possible: Reduce recurring expenses, like utilities, internet, or insurance, by comparing providers or asking for discounts.
• Review subscriptions: Cancel or pause subscriptions you don’t actively use to free up extra funds.
• Reassess regularly: Revisit your budget monthly or quarterly to adjust for changes in income, expenses, or financial priorities.

With structure and consistency, a $45,000 salary can support a solid and sustainable financial plan.

Maximizing your total compensation

Your $45,000 salary is just the starting point. Benefits like retirement matching, health insurance, training, and commuter perks can add significant value to your overall compensation. Understanding and using these extras can help you get the most out of your job.

Health insurance and wellness benefits

Employer-provided health, dental, and vision coverage can save you hundreds or even thousands of dollars each year compared to paying from your own insurance. Some companies also offer wellness stipends or gym memberships that support both your physical and financial well-being.

Retirement contributions

Many employers offer 401(k) or other retirement plans and may match a portion of your contributions. Even a modest employer match is effectively extra compensation that grows tax-advantaged over time. Taking full advantage of any employer match is one of the easiest ways to build long-term wealth faster.

Professional development and education stipends

Some employers provide funds for courses, certifications, or training programs. Using these perks to improve your skills can increase your earning potential over time. Taking advantage of these opportunities can also make you competitive for promotions or higher-paying roles within your company.

Employee discounts and perks

Workplaces may also provide discounts on products, services, or commuter costs. Even small savings on regular purchases add up over the year, effectively increasing your take-home value.

By combining salary with benefits, your total compensation often becomes much higher than just the number on your paycheck.

Know your worth and plan accordingly

A $45,000 salary equals about $21.63 per hour before taxes. This simple calculation is a helpful starting point for comparing job offers, understanding your earning power, and planning your finances.

The real insight comes when you factor in taxes, work hours, and smart budgeting. Keeping these elements in mind allows you to make informed choices, manage your money confidently, and build a financial plan that fits your goals and lifestyle.

With this knowledge, you’re better prepared to take control of your finances and make decisions that move you closer to long-term financial stability.

FAQs

Is $45,000 a year a good salary?

It depends on your location, lifestyle, and financial goals. It’s above the federal minimum wage, so it can cover basic living expenses, but it might feel tight in high-cost cities. If you’re single and living in a moderate-cost area, you can typically live comfortably with careful budgeting.

How much is $45,000 a year per month?

Your gross monthly income is $45,000 ÷ 12 = $3,750. After taxes, your take-home pay could be roughly $3,000 to $3,200, depending on your state and personal deductions. The net amount is what you can realistically use for living expenses, savings, and discretionary spending.

How much is $45,000 a year per week?

A $45,000 salary comes to $45,000 ÷ 52 = $865.38 per week gross. After taxes, your net income could be about $690 to $730, which can help you plan spending and budgeting on a weekly basis.

How much is $45,000 a year per day?

Assuming a standard five-day work week, $45,000 ÷ 260 workdays equals $173 per day gross. After taxes, this could be about $138 to $146 per day, which is useful to know if you budget in shorter time periods.

Can you live comfortably on $45,000 a year?

“Comfortable” depends on your circumstances. A single person in a low-cost or moderate-cost area can typically cover essentials, occasional leisure activities, and some savings. Families or those in high-cost cities will need more strategic planning to meet all their financial goals.

How does $45,000 compare to the median salary?

The median US household income was $83,730 in 2024, so $45,000 falls below the national average. Still, many individuals can live reasonably well on this income depending on local costs. Comparing your salary to the median helps you understand your earning position and plan meaningful financial goals.

Post Office money orders have been one of the most reliable and safest payment methods available in the US for more than 150 years. 

Although digital payments, like the ones you can make with Remitly, have overshadowed the humble money order over the past couple of decades, this payment method is still useful in a bunch of scenarios.

This guide covers everything you need to know about how Post Office money orders work, where and how to buy and cash them, and when they’re the best choice for sending money.

What is a Post Office money order?

A Post Office money order is a prepaid payment instrument that’s issued by the US Postal Service (USPS). You pay for them upfront and receive a paper document that guarantees payment to your nominated recipient.

Unlike checks, money orders can’t bounce because they’ve already been paid for. They’re also trackable and traceable, so they’re generally considered much more secure than cash payments. 

Money order slips have security features that make them a safe way to transfer money without using electronic methods. They’re printed on uniquely patterned paper, have watermarks, and they carry tracking numbers. Depending on when and where it was issued, your money order may also feature a QR code or barcode you can use to check the status of the order.

When to use a Post Office money order

Post Office money orders work well for situations where you need to make a secure, guaranteed payment but sending money via the bank or using a remittance service isn’t an option. Even in our digital world, there are still scenarios where using a money order makes sense.

Rent and utility payments

Many landlords and utility companies will accept money orders, and some even prefer them over checks because, as we mentioned, money orders can’t bounce. This means the people you’re paying can be certain they’ll receive the funds.

On top of the benefits for the recipient, money orders have some advantages for payers. When you send a money order to your landlord or utility company, you can be sure the funds will clear. This reduces the likelihood of late fees or getting a black mark on your payment record.

Online transactions

Security is always a concern when you’re buying things from strangers online. Who hasn’t heard a story about someone who’s been scammed in an online marketplace?

Money orders make these kinds of transactions safer. They create a paper trail without exposing your bank account details to the person you’re sending money to. They’re safer than carrying cash and more likely to be accepted than a check, which makes them ideal for online marketplace purchases.

Sending money long distance

If you need to send money to family or friends in another US state but can’t use a bank transfer or a payment app, a Post Office money order is a reliable alternative.

You can mail the slip to whoever needs the funds and track its movement across the country. When the recipient gets the money order, they can cash it at any USPS or a selection of banks, credit unions, or check-cashing businesses.

International payments

The USPS used to offer international money orders that let you pay people overseas, but it stopped selling these in October 2024 and stopped cashing inbound money orders a year later. Although that’s cut out a relatively cost-effective way to send small amounts of money overseas, you don’t have to fret: with Remitly you can send funds from the US to other countries securely, and without the sometimes long waiting times involved with bank transfers.

How to buy a Post Office money order

Money orders might seem a bit strange if you’ve never used them before, but the process of buying one is actually pretty simple.

What you’ll need

Before you head to your local Post Office, you’ll need to gather a few essentials:

• Cash or debit card
• Valid photo ID (e.g. driver’s license or passport)
• Recipient’s full name and address

The USPS does not accept credit cards or checks for money order payment.

Step-by-step purchase process

There’s no minimum for money order purchases and you can buy one for as little as one cent. There is a maximum, though: you can only send up to $1,000 USD per money order, though there’s no daily limit on the number of orders you can purchase. So you can buy multiple slips to send a larger amount.

The entire process takes just a few minutes:

1. Visit any Post Office during business hours (usually 9 am to 5 pm)
2. Go to the counter and request a money order
3. Provide the recipient’s information and your payment amount
4. Pay the money order amount plus fees
5. Keep your receipt for tracking and records

It’s really important that you keep the receipt you receive from the Post Office: that’s your proof of purchase, and it’s the only way to track the money order once it leaves your hands. Store it somewhere safe until you know the person you’re sending funds to has received the money order.

How to send a money order from a Post Office

Payment made, it’s time to fill out the money order and send it. 

Write the recipient’s full legal name (as it appears on their identity document) in the “Pay to the order of” field and add your details in the purchaser sections to show the recipient who sent it. If you’re paying a bill, be sure to include your account number so the money is routed correctly.

After filling out all the details, consider making a photocopy for your records if you can, put it in an envelope, and deliver it to the recipient. You can do this by hand, or you can just mail it.

Where to cash a Post Office money order

When you receive a money order, you’ll need to take valid photo ID and the original money order slip to where you’d like to cash it. You’ve got a few options.

At Post Offices

Any US Post Office will honor money orders for free, which makes this a convenient and cost-effective option for getting your cash. You’ll receive the full amount on the order, too, without any deductions.

Banks and credit unions

Most banks and credit unions will cash postal money orders for their account holders.

Some banks provide this service free of charge to clients, though they may charge fees or even refuse to cash money orders for people who don’t bank with them. So it’s best to confirm this ahead of time.

Check-cashing services

Groceries, pharmacies, and dedicated check-cashing businesses also cash money orders and usually have longer opening hours than Post Offices or banks. While this is more convenient, these places usually charge a small fee based on the amount of the money order. 

Post Office money order fees and refunds

The USPS charges money order senders a small fee based on the amount they’re sending. At time of writing, you’ll pay:

• $2.55 USD for orders up to $500 USD
• $3.60 USD for orders between $500.01 USD and $1,000 USD
• $21 USD processing fee for replacing lost or stolen money orders

If your money order is lost or stolen, you’ll need the original receipt to have it replaced and you’ll have to fill in form 6401 to prompt the USPS to look into it.

You can get refunds on any money orders that aren’t cashed by the recipient. All you need to do is take your receipt to the Post Office and start a Money Order Inquiry, which you can track on the USPS website. The process takes up to 60 days, though.

Post Office money orders vs. other payment methods

Post Office money orders work well in many situations, but understanding how they compare to other payment methods can help you to choose the right money transfer method for your specific needs.

Compared to bank money orders

USPS money orders cost much less to send than the ones you can send from the bank. People generally trust the USPS, too, which is why they can be cashed at so many different outlets.

That said, you might be able to send a higher amount through a bank. This could be convenient if you need to pay a recipient quite a bit more than $1,000 USD and don’t want to buy multiple orders.

Compared to cashier’s checks

There’s one big benefit that money orders offer over cashier’s checks: you don’t need a bank account to purchase them.

To write a cashier’s check, you’ll definitely need to have an account with the bank that backs it. They usually don’t have a mandated maximum limit, though, so you can send much more than the $1,000 USD limit on USPS money orders. That makes cashier’s checks better for large transactions like buying a car or making down-payments on a property, for example.

Compared to wire transfers

Post Office money orders are much less expensive than wire transfers, which can cost $35 USD or more per transaction. Although they cost more to send, wire transfers are significantly faster than postal money orders because they’re sent electronically. 

Since the USPS no longer offers international money orders, a wire transfer is one of your remaining options if you want to send money across borders. You can also use Remitly, of course, to send money to recipients worldwide quickly and securely.

Tips for using money order safely

There are always risks involved in sending money, though you can overcome many of these by following smart security practices and staying alert to potential scams.

Security best practices

Follow these guidelines will help you to protect your money orders from theft, fraud, and loss across the entire transaction process:

• Look after money orders like you would if they were cash.
• Never send blank or partially filled money orders.
• Use trackable mail services when sending money orders.
• Photocopy completed money orders before mailing them, if you can.
• Keep your money order receipt.

Avoiding scams

You’ll need a little healthy skepticism and some vigilance to protect yourself from money order scams.

It’s best not to accept money orders with a higher value than the payment price. A common money order scam involves sending someone a fake order for more than the agreed amount, then asking you to cash it and wire the difference back to their account. Because it’s a falsified document, you end up being short the full amount plus the “extra” paid to you.

Be suspicious of unexpected money orders or those with amounts larger than expected. Always verify that the order is legitimate with your bank or the Post Office before providing any goods or services to the sender.

If you come across anything that seems suspicious, report it to the US Postal Inspection Service.

Make your next money order payment with confidence

US Post Office money orders offer a great combination of security, availability, and affordability. Whether you’re paying rent, sending money to family, or making purchases that require a guaranteed payment, postal orders provide peace of mind for senders and recipients.

With Post Offices conveniently located across the US, it’s easy to use this trusted payment method. Just remember to fill them out correctly and completely, keep your receipts, and store them securely before sending or cashing them.

FAQs

Can I buy a Post Office money order with a credit card?

No. The USPS doesn’t accept credit cards for money order purchases: you can only pay with cash or a debit card.

What happens if I lose my Post Office money order receipt?

It’s really difficult to replace a money order if you don’t have a receipt. It may not even be possible in some cases. You can still file a Money Order Inquiry, but the process will be way more complicated and time-consuming without your original receipt.

How long does a Post Office money order take to clear?

Post Office money orders can be cashed immediately after they’ve been issued. Unlike bank money orders, which typically take one to three business days to clear, there’s no waiting period.

Can I cancel a Post Office money order after purchase?

Yes, you can request a refund for an uncashed money order. Just head to the Post Office with your money order receipt and complete the refund request form. It will usually take a few weeks for money to get back to you.

Are there age restrictions for buying Post Office money orders?

There aren’t any specific age restrictions for sending Post Office money orders. That said, the Post Office will require a valid form of identification, so you should be prepared to provide this regardless of your age.

Nowadays, online banking services are everywhere, and platforms like Remitly allow you to send money from one person to another with the click of a button. But long before we paid for nearly everything electronically, there was simple cash, and before that, there were beads and cattle.

Money, as we know it today, hasn’t always existed. The term commodity money refers to the use of physical goods as currency. We’re talking about items like salt, livestock, and precious metals. 

Seeing the importance that these items have held over thousands of years helps us appreciate how modern money evolved, and understand why many places still use commodity money as a form of payment. 

What is commodity money, exactly?

Commodity money is a physical item used as a method of payment for another good or service. This process is commonly known as bartering, and it’s been around for a long time. 

We say commodities used for trade have intrinsic value because they have innate worth or use that doesn’t depend on market trends or subjective opinions. Think about livestock, for example; we get meat, milk, and eggs from farmed animals. All of these items can be eaten and sustain humans. Their value isn’t man-made, but intrinsic. 

This is in contrast to paper and digital money, which have value only because society assigns worth to them. Electronic money doesn’t have a practical, physical use on its own—we’ve given it value by deciding it can be used to buy things. Modern currencies are also known as fiat money, or money that has been assigned value by a government.

Intrinsic value is one key feature of commodity money; the other is that it needs to be a widely accepted method of payment for goods and services. Precious metals, for example, are valuable as a medium of exchange because they have many practical uses, such as being worn as jewelry. In many cultures, gold is a symbol of wealth and status. 

Real-world examples of commodity money

Let’s look at some real examples of commodity money, both historical and modern. 

Agricultural products

These are items that humans farm and harvest, such as salt, grain, livestock, rice, tea, and coffee, which have been historically used for bartering. Tea bricks, which are compressed blocks of tea leaves, were used as currency along the Silk Road. The word “salary” comes from the Latin salarium, which translates to “salt money”. 

These items are edible and commonly used, making them extremely valuable throughout history because they serve as a means of survival.

Precious metals

There are eight precious metals in total, but we’ll focus on two of the most well-known ones: gold and silver.

Historically, gold and silver were viewed as a source of wealth; they’ve been used for millennia as a means of paying for goods and services. They’re durable and divisible (i.e., they can be melted and remade), giving them a universal appeal across cultures and countries. They can also be made into attractive-looking items, like jewelry. 

In the modern financial world, we’ve adopted the term “gold standard,” which is the act of backing fiat money with physical gold to give it value. The gold standard isn’t really used much today, but the precious metal is still seen as a safe-haven asset in times of economic turmoil. 

Other goods

Shells, beads, and even large stones, like the Rai stones of Yap Island in Micronesia, have long held cultural significance. 

Cowrie shells historically held value in Africa and Asia largely because of their uniform weight and size, and their relative rarity. They were easy to carry around and weigh, giving them a set, standard value. They were also quite durable, making them even more appropriate as a form of money.

Rai stones were used for big-ticket goods and services, such as dowries and land purchases. They were quarried hundreds of miles away and transported by boat, adding to their value. 

Because of their long history and prominence in various cultures, these items still hold cultural value today.

The advantages of commodity money

There are numerous pros to using commodity money, even in today’s modern world. Here are a few: 

• Inherent value: These items are worth something because of their practical uses. Precious metals, for example, are used in electronics that power our 21st-century lifestyles through smartphones and computers. 
• Stable value: Because the value of these items is tied to physical goods, they’re less prone to the swings that fiat money can have during economic ups and downs.
• Self-regulating: The supply of many of these commodities is finite or hard to come by, such as precious metals that need to be mined and coffee that must be grown continuously.

The disadvantages of commodity money

As much as commodity money has its place in history and our contemporary world, it does have its downsides, such as: 

• Portability issues: It’s easy to move cowrie shells, but it’s not as simple as moving a herd of cattle or a house.
• Lack of divisibility: Some commodities aren’t easy to divide into smaller units to make minor purchases, such as a live cow or land.
• Inconsistent quality: Unlike paper or electronic money, which is designed to be uniform in every way, the quality of commodities can vary—two gold coins might not have the same purity, or a bag of rice may have spoiled. 
• Supply fluctuations: A bad harvest can destroy crops, driving up the price of related commodities, while the discovery of a large deposit of gold could see the precious metal’s price devalue as supply is increased. This not only disrupts the wider economy, but also affects the individuals who are buying and selling these items. 

The movement from commodities to currencies

The shift from commodity money to modern currencies was a gradual process shaped by growing economies and the need for faster, more reliable trade. As societies expanded, everyday transactions became too complex for systems based on livestock, grain or precious metals. These goods were valuable, but they were not always practical. Some were hard to transport, others were difficult to divide, and many were vulnerable to spoilage or changes in quality. 

As trade networks grew across regions and continents, people needed a payment system that was lighter, more uniform and easier to manage. The introduction of paper money marked a major turning point. 

Historians often point to China as the origin of the first true paper currency during the Tang Dynasty. Merchants started using paper notes as receipts for the large amounts of metal coins they deposited with trusted agents. Over time, these notes became widely accepted on their own because they represented real value stored elsewhere. This idea spread slowly to other parts of the world, setting the stage for modern banking systems.

Nowadays, the adoption of fiat money seems like a no-brainer for the convenience and stability it offers over commodities. Even so, some countries and communities still use commodity money in limited ways. In parts of Africa and Asia, items like livestock or grain remain common for bartering in rural areas. In regions without stable banking systems, goods such as coffee beans or tobacco can serve as a reliable way to store value or trade for essentials. 

Commodity money in a contemporary world

The best way to understand commodity money is to see it as a physical good with intrinsic value that serves as a medium of exchange. It has its benefits, like its practical uses in everyday life, but it also has disadvantages, like a lack of portability and inconsistent quality.

While the world has largely moved onto fiat currencies, knowing where our modern payment methods originated helps us understand the way economics works—and highlights how important trust and stability are in any financial system. We rely on this trust in governments to keep paper and electronic money stable, and collectively agree on this money’s value.

FAQs

What are the main characteristics of commodity money?

The first main feature of commodity money is its intrinsic value, which means these items have practical uses in our day-to-day lives. The second is its ability to be a medium of exchange—sought after and widely accepted.

What is the difference between commodity money and fiat money?

Commodity money has intrinsic value, whereas fiat money has extrinsic value. Fiat money, like the US dollar, has value only because the government has assigned it value, and society agrees on this worth and trusts it.

What are some examples of commodity money in history?

These include cowrie shells, gold and silver, grain, livestock, tobacco, coffee, tea, and salt.

How is the value of commodity money determined? 

Let’s look at a couple of examples to understand this: When gold coins were used, their purity and weight determined how much they were worth. When it came to goods like salt and tobacco, these were valued according to their supply and demand. 

Can cryptocurrency be considered commodity money?

This is a hotly debated topic. Cryptocurrency is a digital currency, so it doesn’t have inherent value like gold or rice. However, some cryptos, like Bitcoin, need to be “mined” digitally, so their scarcity creates a value similar to that of a commodity. Most economists, however, see cryptocurrency as a separate asset class, distinct from commodities and fiat money.

Is gold still considered commodity money?

Yes and no. In most economies, fiat money is used instead of precious metals like gold. However, countries like the US have a gold reserve, because the qualities of gold that made it a valuable commodity all those years ago still exist. This is also why many investors choose to keep their money in gold.

Signing a check isn’t always as straightforward as it looks—especially if, like most of us, you’re much more used to making digital payments through platforms like Remitly these days.

Many people aren’t sure where their signature should go or whether anything special needs to be written on the back. If you’re learning to navigate the US banking system, you’re not used to using checks, or you just want to get your cash quickly, this guide will show you exactly where to sign a check to avoid delays.

Check signing basics

Before you get to signing a check in the US, it helps to understand why you need to put your “John Hancock,” as Americans call your signature, on these money transfer documents.

When you write a check and sign it on the signature line, it indicates that you (the drawer or person who wrote the check) are authorizing the bank to withdraw funds from your account and pay the person or entity named on the “Pay to the order of” line. 

The recipient (the payee or person who you’re sending funds to) also needs to sign the check. They do this in the check endorsement box on the back of the slip. This tells the bank that the person who the check is written to agrees to receive the funds and authorizes the bank to process or deposit the check into their account.

On most US checks, you’ll see a section at the back that says “Endorse here” along with a line that instructs you not to write, stamp, or sign below that line. 

Where to sign a check

Whether you’re making or accepting a payment, it’s important to put your signature in the right place. Let’s take a look at the rules for where you place your signature, to ensure your payment can be processed without delay.

Signing the front of the check

The signature on the front of the check is how the person or entity making the payment authorizes the transfer of funds from their account to the recipient’s. A check can’t be deposited or cashed if this signature doesn’t appear on the document.

The line where you sign is typically placed in the lower-right corner of most US checks, but it may also be a small box. The standardized placement helps bank employees and ATMs scan and process checks quickly and accurately.

Signing the back of a check

The back of the check is where the payee signs. This signature is called the endorsement. It’s a little different from the front signature, as not all banks require checks to be endorsed before accepting them.

The endorsement area appears on the back of a check. It’s usually marked with a heading saying something like “Endorse here,” along with lines or a box for where your signature should go. As with the front signature, it’s important to sign within the designated area to ensure that your bank’s imaging systems or staff can verify and clear the check easily.

When you turn over a check that’s written to you to endorse it, you should sign your name exactly as it appears in the “Pay to the order of” line on the front. So if you’re receiving a check, make sure your name is spelled correctly.

Why where you sign a check matters

The location of your signature on a check matters a lot. On the front, the payer’s signature gives banks legal permission to move funds from the account that’s linked to the check. When it’s missing or in the wrong spot, the check could be flagged for fraud or simply rejected.

The endorsement signature on the back shows that the person holding the check is the rightful recipient of the funds. Even though it’s not always a requirement, signing in the designated “Endorse here” area is the safest bet.

If you make a mistake and sign in the wrong place, you won’t be able to deposit or cash the check. You’ll have to go back to the person who wrote it to get a new one. Which might cause delays, and could be a bit embarrassing.

Best practices for signing a check

Filling out a check can be stressful if you’re still getting used to the US banking system. Fortunately, whether you’re the one paying or receiving funds, the process is pretty simple when you have a clear roadmap of what to do.

Here are some best practices for signing a check as a payer and payee:

• Check the details
  Confirm that the date, payee name, amounts, and all other required fields are filled in and accurate.
• Use blue or black ink
  Banks use imaging systems that don’t always pick up colored pens, and definitely don’t use pencil, which can easily be erased.
• Sign consistently
  Match the signature your bank has one file or write your name exactly as it appears on the “Pay to the order of” line.
• Stay inside the lines
  Sign directly on the signature line on the front of the check or within the bounds of the endorsement box on the back.

Different types of check endorsements

There’s only one way to sign the front of a check, but there are a few different options when it comes to signing on the back. There are different ways to endorse a check, depending on how you plan to deposit, cash, or transfer the payment.

Blank endorsement

A blank endorsement is the simplest way to sign the back of a check: You just write your signature in the “Endorse here” section. At that moment, the check becomes what’s known as a bearer instrument, meaning whoever holds it can present it for payment.

This method is most useful when you’re depositing a check soon after endorsing it. For example, when you’re standing at the teller counter in the bank or just before feeding the check into an ATM.

Although it’s quick and easy, there are some risks. Once the check is endorsed in blank, it’s similar to carrying cash. If you lose it or it gets stolen, someone else can deposit it. This means that it’s best to only use a blank endorsement when you’re about to accept the funds from the payer.

Restrictive endorsement

A restrictive endorsement adds a layer of protection to the check cashing process by limiting how the check can be used once it leaves your hands. Instead of a simple signature, you’ll write a short instruction (usually “For deposit only”) and your account number on the back of the check, in addition to your signature.

This extra bit of information tells the bank that the check can’t be cashed or signed over to someone else, and can only be deposited into the specific account you’ve detailed above your signature in the endorsement area.

Restrictive endorsements are ideal when you have a check that you’re not going to deposit immediately. For example, if you’re mailing it to your bank, using a mobile deposit, or depositing it via an ATM.

It’s also a good choice if you’re handling a high-value check. By clearly limiting what can happen to it, you reduce the risk of fraud and ensure that the funds end up exactly where you want them to go.

Special endorsement

Special endorsements allow you to transfer a check that was made out to you to someone else. Basically, these types of endorsements let you pay a third party. 

To do this, you’ll need to write “Pay to the order of…” and the new recipient’s name above your signature in the endorsement area on the back of the check. Legally, this transfers your rights as the payee to the new recipient, making them the person who’s authorized to deposit or cash the check.

Although this can be convenient, banks are not obligated to accept checks with special endorsements. Most institutions impose extra requirements (e.g. having both parties present at the branch with their IDs) before these checks can be deposited because of the opportunities they present for fraud.

So before you write “Pay to the order of,” consider confirming with the recipient’s bank that they accept third-party checks and any extra conditions they might apply if they do. 

Endorsements for mobile check deposits

Mobile banking apps have changed how we deposit checks, and the endorsement requirements reflect that. With mobile check deposits, you’ll usually take pictures of the front and back of your check to action the deposit.

Many banks require you to sign the check and add wording like “For mobile deposit only” in the endorsement area to do this. Adding this wording helps ensure the paper check can’t be redeposited somewhere else if it lands in an unauthorized person’s hands.

As you’re submitting photos of the check to deposit it, clarity is super-important. Place the check on a plain-colored, flat surface in good light, ensuring that your endorsement text and signature are clearly readable. This helps ensure the bank can easily confirm the check is intended for your account and mobile deposit.

Keep in mind that banks may limit which types of checks qualify for mobile deposit. For example, often they won’t let you use this method for specially endorsed or high-value checks.

Security tips for signing and endorsing checks

Checks carry sensitive information about both the payer and the payee, so a little extra care goes a long way to keeping both parties protected from fraud.

• Sign in ink to ensure your signature can’t be easily erased or altered.
• Never sign blank checks.
• Only endorse the check when you’re ready to deposit it.
• Avoid blank endorsements unless you’re standing in front of the bank teller.
• Don’t include any personal details that you don’t strictly need to validate the check.
• Shred unused or voided checks before throwing them away.
• Monitor your account after writing or depositing a check to confirm action has been taken.

Take control of how you send and receive payments today

Knowing exactly what a proper check looks like and all the signatures it needs makes sending and receiving payments with this paper-based method much less stressful. 

It may seem old-fashioned if you’re not from the US, but it’s still very common there, so knowing how to do this right helps you protect your money, prevents processing delays, and keeps your payment moving smoothly through the banking system.

FAQs

Can I sign a check anywhere on the back?

No, your signature should go in the designated endorsement area on the back of the check. It’s usually marked with “Endorse here.” If you sign outside of that area, the deposit might be delayed or the check rejected by your bank.

What if I make a mistake when signing my check?

Most banks will require the check writer to submit a new check if there’s a mistake on the front. Payees can usually re-endorse a check in the endorsement box if they make a mistake. In either case, you should never try to alter the check.

Do I need to sign a check for mobile deposit?

You definitely need to sign a check for a mobile deposit. Many banks also ask that you include something like “For mobile deposit only” so that the paper original can’t be redeposited using another method later on.

Can someone else sign my check for me?

Generally only the payer and the name payee sign the check. If you have a special endorsement or third-party check, don’t need to sign it. But there are other requirements that banks sometimes put in place.

What happens if I don’t sign a check before depositing it?

A check that isn’t signed on the front by the payer can’t be deposited. However, you might be able to deposit a check that hasn’t been endorsed because not all banks require an endorsement for checks to be deposited. 

If you’re a shopper or business owner facing an unexpected transaction reversal, it’s likely a chargeback. What exactly is a chargeback? Basically, it’s a method of reversing a disputed transaction through your bank. While it’s intended to protect consumers from unauthorized charges, it can sometimes catch both customers and business owners off guard.

Understanding chargebacks gives you the confidence to handle them without hassle. That’s why we’ve created this guide at Remitly to explain what a chargeback is and how it works. We’ll also give you some tips on how to prevent them and avoid unnecessary headaches in the future.

What is a chargeback?

A chargeback is the reversal of a credit or debit card payment by your bank after you dispute a transaction. 

Think of it like your bank acting as a referee. They step in to review the situation between you (the customer) and the business (the merchant) to decide if the money should be returned. 

Chargebacks are designed to protect consumers when there’s a valid dispute. If approved, the bank refunds your money and collects it from the merchant.

Why do chargebacks happen?

Chargebacks can occur for many reasons. Below are some of the most common causes.

Fraudulent transactions

A fraudulent transaction happens when someone uses your credit or debit card without your permission. This could be someone making an online purchase, signing up for a subscription, or even booking travel or event tickets using your card. If you report the charge as soon as possible, your bank can reverse the payment and protect you from financial loss.

Service not received

If you paid for a product that never arrived or a service was never provided, you can file a chargeback. For example, you might have booked a photography session or hired a cleaning service, but the business cancels at the last minute or refuses to deliver. Filing a chargeback ensures you get your money back.

Product not as described

Chargebacks can also happen when the item you received isn’t what you expected. For example, you might order a new smartphone online but end up receiving a used or damaged one instead. If the product is wrong, faulty, or not as described, your bank can review the issue and return your money.

Refund not processed

If a merchant doesn’t process a refund you’re owed, you can file a chargeback. For example, if you return an item that doesn’t fit and the store never issued the refund, a chargeback can help you get your money back.

Incorrect amount charged

A charge may be higher or lower than expected due to manual entry errors or simple typos, such as entering an extra zero when taking an order over the phone. Chargebacks allow you to dispute the mistake and have the amount corrected.

Unrecognized charge

An unrecognized charge is when a transaction that you don’t recognize or remember appears on your statement. This often happens when a merchant’s name looks unfamiliar or you simply forgot the purchase. 

For example, a streaming subscription might show up under the parent company’s name instead of the brand you know. If you dispute the charge, your bank can investigate and issue a chargeback if necessary.

Wrong currency charged

A merchant might accidentally charge your card in the wrong currency. For example, you might be billed in Australian dollars instead of US dollars, or a transaction you made while traveling may not match the currency you expected. A chargeback allows your bank to review the issue and correct the charge if needed.

Technical issues

In some cases, the issue isn’t with the merchant or the product but with the payment system itself. You might get charged twice for the same online order or see the wrong amount on your statement. A chargeback allows your bank to fix these errors so you only pay for what you actually purchased.

Chargebacks vs refunds: What’s the difference?

It’s easy to confuse chargebacks with refunds. Both return your money, but in fact they are quite different processes.

Here’s a simple table to break it down:

Factor	Refund	Chargeback
Who starts it	The customer contacts the merchant directly	The customer contacts their bank to dispute the charge
Who is involved	Only the customer and merchant	The customer, merchant, and their banks
How long it takes	Usually processed within a few days	Can take weeks or even months to resolve
Impact	Little impact outside of the transaction—the merchant simply sends you the money	May lead to fees, penalties, or even reputation damage for the merchant

When possible, it’s always best to contact the merchant first to request a refund. Most businesses want to keep their customers happy and will issue a refund quickly. This avoids the longer chargeback process and helps maintain a good relationship if you plan to shop there again.

For customers: how do you initiate a chargeback?

If you’re a customer with an unauthorized transaction and you need to request a chargeback, you’ll want to understand how the chargeback process works.

1. The chargeback dispute: The process begins when you contact your bank to challenge a charge on your account. You’ll need to provide detailed information like receipts, emails, or screenshots to help your bank quickly understand the issue and start an investigation.
2. Provisional credit: While your bank investigates, they may issue a temporary credit for the disputed amount. This means the money is returned to your account so you’re not left out of pocket while your bank checks the issue. 
3. The merchant is notified: Your bank informs the merchant’s bank about the dispute and temporarily withdraws the funds from the merchant’s account. 
4. The merchant responds: The merchant can either accept the chargeback or provide evidence to challenge it, a process known as representment. They might provide proof of delivery, signed receipts, or communication showing the service was rendered. 
5. The final decision: After reviewing all submitted evidence, your bank makes a final ruling. If the chargeback is approved, the temporary credit becomes permanent, and the merchant permanently loses the funds. 
6. Reversal of credit if denied: If the bank rules in favor of the merchant, the provisional credit is reversed, and the original charge stays on your account. Either way, the bank’s decision is based on evidence and ensures a fair outcome.

For merchants: tips to prevent chargebacks

As a business owner, chargebacks can harm your reputation and disrupt your business. Luckily, there are several proactive policies you can follow to help your customer service shine and reduce the likelihood of chargebacks.

Make terms and policies crystal clear

Be upfront about what customers can expect before they make a payment. Clearly display product prices, estimated shipping times, and any extra fees like taxes or delivery costs on your website or at checkout. Include easy-to-find links to your return, refund, and cancellation policies written in plain language.

Clearly communicate your refund policy: how long customers have to request a refund, what conditions apply, and whether any fees are charged. Making everything clear from the start reduces confusion, and customers are less likely to file a chargeback.

Deliver outstanding customer support

Respond quickly and helpfully when customers reach out with questions or complaints. Many chargebacks happen simply because someone couldn’t get a timely response. Proactively resolving small problems, like a missing item or a delay, can stop them from turning into disputes.

Make it easy for customers to contact you through multiple channels, such as live chat, phone, or email, so they always feel heard and supported.

Use secure payment methods and fraud prevention

Use secure payment methods with tools like 3D Secure, CVV checks, and two-factor authentication to make sure the cardholder is legitimate. These systems help confirm that the person making a purchase is the actual cardholder, reducing the risk of unauthorized use. 

Update your fraud detection software regularly to keep up with evolving scams and new threats. The stronger your security setup, the fewer chargebacks you’ll face from fraudulent activity.

Keep an eye on high-risk transactions

Watch out for high-risk transactions, such as unusually large purchases, multiple orders in quick succession, or payments from new or international customers. Reviewing these transactions manually gives you a chance to verify their legitimacy before processing. 

You can also use automated alerts or filters to flag suspicious activity early, helping you stop potential chargebacks before they occur.

Analyze chargeback patterns regularly

Keep track of which products, services, or transactions lead to the most chargebacks. Identifying recurring issues, like misleading product descriptions or delayed deliveries, helps you understand where improvements are needed. 

Use these insights to fine-tune your policies and update product details. Sharing this data with your team ensures everyone works together to reduce future disputes and protect your business reputation.

Staying in control of your finances

A chargeback is a formal process between banks, making it more complex than a standard refund. It can occur for several reasons, including fraud, unrecognized charges, undelivered services, incorrect amounts, or technical errors. It should really be used as a last resort, because it can take some time to complete and may result in additional consequences for the merchant. As a customer, you can feel confident knowing that your bank will protect you from any unauthorized charges.

FAQs

How long do I have to file a chargeback?

The timeframe for filing a chargeback depends on your card network, such as Visa or Mastercard, and the reason for the dispute. Typically, you have between 60 and 120 days from the transaction date to initiate it. It’s best to contact your bank as soon as you notice an issue.

Can a business refuse a chargeback?

A business cannot refuse to participate in the chargeback process, but it can challenge the claim by providing evidence that the transaction was valid. The bank reviews both sides before making a final decision. If the merchant’s proof is valid, it may affect the outcome, so clear communication and documentation are essential on your end.

What happens if I lose a chargeback dispute?

If the bank decides in favor of the merchant, any temporary credit you received will be reversed, and the original charge will be reinstated on your account. 

Can I file a chargeback for a digital product or subscription?

Yes, you can file chargebacks for digital goods or subscription services if you have a good reason to dispute the charge. You’ll probably need to provide evidence such as confirmation emails, receipts, or screenshots to support your claim. 

Will filing too many chargebacks affect my credit score?

Filing chargebacks doesn’t directly affect your credit score, but frequent disputes can raise red flags with your bank. Repeated chargebacks might lead your bank to review or even restrict your account if they suspect misuse. Use chargebacks only when necessary and try to resolve issues with the merchant first.

Do chargebacks work internationally?

Yes, you can file chargebacks for international transactions as long as your card supports global payments. Processing may take longer because of currency conversions, different banking systems, or time zone differences. Even so, your customer rights remain protected, no matter where the merchant is based.

Taxes can feel complicated, especially if you’re new to running a business or navigating US tax requirements. One of the first things to understand is your Tax Identification Number (TIN), which the IRS uses to track your filings and ensure proper reporting. While many US citizens use a Social Security number, individuals without one and businesses may need to apply for a different type of TIN.

Two terms you’ll likely come across are TIN and Employer Identification Number (EIN). An EIN is a specific type of TIN used for businesses, and understanding the difference can help you choose the right number for your situation. This Remitly guide will walk you through the details in a clear, approachable way, so you can feel confident knowing which number applies to your situation.

What is a Taxpayer Identification Number (TIN)?

A Taxpayer Identification Number (TIN) is a number the IRS uses to identify individuals and entities for tax purposes. Different agencies may issue these numbers, but all are accepted by the IRS to identify you in tax filings and related financial records.

Several types of TINs exist, each serving a different purpose depending on your circumstances. If you’re a US citizen or authorized worker, your TIN is typically your Social Security Number (SSN). Individuals who need a tax ID but aren’t eligible for an SSN may apply for an Individual Taxpayer Identification Number (ITIN) instead.

And if you’ve started a small business or employ others, your business might have an Employer Identification Number (EIN), which is another type of TIN.

Using the correct TIN helps make filing taxes, opening accounts, and completing financial paperwork simpler and more efficient.

The most common types of TINs

Let’s take a closer look at the types of TINs you might encounter:

Social Security Number (SSN)

This is the most familiar type of TIN, issued by the Social Security Administration. It’s used by US citizens, permanent residents, and some temporary residents with work authorization to report income, file taxes, and qualify for benefits like retirement or disability. Employers also use it to report wages to the IRS.

Individual Taxpayer Identification Number (ITIN)

If you’re not eligible for an SSN but still need to file taxes, the IRS issues an ITIN instead. This is the case if you earn income in the US but are a non-resident immigrant, or if you’re a dependent or the spouse of a US taxpayer. ITINs are strictly for tax purposes. They don’t provide work authorization, social security benefits, or immigration status.

For instance, imagine you’re studying abroad in the US, earning money from a research position or freelance work. You may not qualify for an SSN, but you still need to file taxes. That’s where an ITIN comes in.

ITINs help ensure that everyone who earns taxable income can pay and report taxes fairly, regardless of citizenship or immigration status.

Employer Identification Number (EIN) 

An EIN is a TIN for businesses, corporations, partnerships, and some trusts or estates. The IRS assigns it to identify your business when you file taxes, report payroll, or open bank accounts.

You’ll need an EIN if your business has employees, operates as a corporation or partnership, or files specific tax returns. Even if you’re a sole proprietor with no staff, many people choose to get an EIN to keep their business and personal finances separate.

Adoption Taxpayer Identification Number (ATIN)

ATINs are temporary numbers issued by the IRS to parents in the process of adopting a child in the US. It lets them claim the child as a dependent on their taxes while waiting for the adoption to be finalized and an SSN to be issued to the child. 

Why TINs matter

Having the correct TIN ensures the IRS and financial institutions can accurately identify you for tax reporting, income tracking, and financial transactions. For businesses, it keeps personal and business finances clearly separated, simplifying recordkeeping and compliance.

For newcomers to the US, the different TIN types can be confusing, but each serves a specific purpose. Using the right number helps avoid delays, errors, and unnecessary complications when filing taxes, opening accounts, or completing other official paperwork.

What is an Employer Identification Number (EIN)?

An Employer Identification Number (EIN), sometimes called a Federal Tax Identification Number, identifies a business to the IRS. If an SSN is a personal tax ID, an EIN serves the same purpose for a business. It uniquely identifies your company to the IRS and other agencies.

Why businesses need an EIN

If you plan to hire employees, file payroll taxes, operate as a corporation or partnership, or open a business bank account, you’ll almost certainly need an EIN.

For example, imagine you’ve just started a landscaping business and you’re trying to understand whether you need a TIN or an EIN. First, you might report income under your own name. However, once you hire a few helpers or want to open a business bank account, you’ll need an EIN for payroll reporting and banking. Most financial institutions require one for any account opened in the name of a business.

Common reasons to get an EIN

Here are a few common situations where having an EIN is necessary or helpful.

• Hiring employees: Payroll taxes are tied to your EIN, and it’s required for reporting wages to the IRS.
• Operating as a corporation or partnership: These structures must have an EIN for federal filings.
• Filing specific tax returns: For example, employment or excise taxes.
• Opening a business bank account or credit line: Most banks and lenders require an EIN to verify your business identity.

Even if you’re a sole proprietor with no employees, a freelancer, or have a small online business, an EIN can still be useful. It helps maintain privacy, makes financial management easier, and can add credibility when working with clients or vendors.

Summarizing the TIN vs. EIN difference

While TINs and EINs are related, the key difference comes down to who or what the number identifies. To make things clearer, here’s how TINs and EINs compare side by side:

Feature	TIN	EIN
Primary user	Individuals, non-residents, and businesses	Businesses only
Common types	SSN, ITIN, EIN, ATIN	EIN (it’s a type of TIN)
Main purpose	General tax administration for all taxpayers	Identifying business entities for tax and payroll purposes
Format	Varies (SSN is XXX-XX-XXXX)	Always nine digits (XX-XXXXXXX)

Understanding this distinction helps ensure you’re using the right number for tax reporting, banking, and other official purposes.

When do you need an EIN for your business?

Not every business needs an EIN, but there are a few common situations where having one becomes necessary or simply helpful.

Hiring employees
Once you bring employees on board, an EIN is essential for reporting wages and managing payroll taxes. The IRS uses your EIN to track how much you withhold from paychecks and the contributions you make.

Operating as a corporation or partnership
Any business structured as a corporation or partnership must have an EIN. This applies whether you’re running a large company or a small business.

Filing certain tax returns
Even if you don’t have employees, you might still need an EIN if you file taxes for excise, employment, or other specialized federal taxes.

Opening a business bank account or credit card
Most financial institutions require an EIN to open a business account or apply for business credit.

Separating business and personal finances
Even if it’s not legally required, many small business owners choose to get an EIN to make their recordkeeping simpler and safer. It’s an easy way to keep your SSN private and reduce the risk of identity theft. 

How to apply for a TIN or EIN

Applying for a tax ID number is more straightforward than you might expect, but the process depends on the type you need.

Applying for a TIN

• SSN: Use Form SS-5 with the Social Security Administration. Applicants generally apply in person or by mail if abroad.
• ITIN: Use Form W-7, along with proof of your identity and foreign status. You can apply directly with the IRS or through an ITIN acceptance agent, someone authorized by the IRS to help verify documents for ITIN applications.
• ATIN: Adoptive parents can file Form W-7A to receive a temporary number while waiting for the child’s SSN.

Once you receive your TIN, keep the confirmation document somewhere safe. You’ll need it for all tax filings and financial activities.

Applying for an EIN

If you’re starting or running a business, you can apply for an EIN directly through the IRS website. The online application is free, and you’ll usually get your EIN immediately after completing it.

You can also apply by fax or mail using Form SS-4, but those methods take anywhere from a few days to several weeks.

Only the responsible party for the business should apply. This is typically the owner or principal officer who controls the company’s finances and decision-making.

Keeping your tax ID secure

Once you receive your TIN or EIN, treat it like any sensitive information. Store it securely and share it only with trusted parties, such as your bank, employer, or accountant.

Scammers sometimes impersonate the IRS or banks to request tax IDs. If something feels suspicious, double-check before sharing any information. Remember, the IRS will never ask for your personal details by email or text message.

Making sense of TINs and EINs

Understanding the difference between a TIN and an EIN isn’t just about tax forms; it’s about feeling confident managing your life or business in the US.

TIN is a broad term for any IRS-issued tax numbers, including SSNs, ITINs, ATINs, and EINs. An EIN is a specific type of TIN used primarily for businesses, corporations, partnerships, and some trusts or estates. Even sole proprietors may choose to get an EIN to separate personal and business finances.

If you’re not sure which number applies to you, the IRS website offers clear guidance, and the process of applying is free. Remember, it’s normal to feel uncertain. US tax rules can be complex, especially if you’re just getting started. Once you have the right number, you’ll feel more confident handling your taxes, opening financial accounts, and growing your business.

FAQs

Is an EIN the same as a TIN?

An EIN is a type of TIN, but not all TINs are EINs. TIN is a broad category for tax identification, while an EIN is a specific number for business entities.

Can I use my SSN instead of an EIN?

Yes, if you’re a sole proprietor with no employees and don’t meet other IRS requirements for an EIN. Even then, using an EIN can help protect your SSN and keep finances separate.

How do I apply for an EIN?

The easiest method is online through the IRS website. You can also apply by fax or mail using Form SS-4. International applicants can apply by phone.

Do I need a new EIN if my business changes?

You don’t need a new EIN if you change your business name or move locations.

But if you change your business structure (for example, from a sole proprietorship to a corporation), you’ll need to apply for a new one.

What’s the difference between a TIN, EIN, and ITIN?

A TIN is a general tax ID number that the IRS uses for individuals and businesses. An EIN is a type of TIN for business, while an ITIN is a TIN for individuals who aren’t eligible for an SSN but need to file taxes.

If you’re a green card holder living in the United States, you may have wondered: Can I vote if I have a green card? It’s a common and important question. Permanent residents live, work, and pay taxes in the US, and many feel deeply connected to their communities. However, in most cases, the answer is no. Green card holders can’t vote in federal elections, and US citizenship is required to vote in federal, state, and most local elections.

It’s understandable that many immigrants and permanent residents feel unsure about their rights when it comes to civic participation. Questions about voter registration, eligibility, and possible legal consequences often come up, especially since rules can vary slightly between local jurisdictions. Knowing exactly what’s allowed is essential, not only to stay informed but also to protect your immigration status and avoid serious penalties.

This Remitly guide explains the key facts about voting with a green card. You’ll learn about the rules and restrictions, the potential risks of voting as a non-citizen, and how to gain voting rights through US citizenship. With the right information, you can make informed choices and prepare for the moment when you can fully take part in American democracy.

Why can’t green card holders vote in federal elections?

In the United States, only US citizens can vote in federal elections. The US Constitution and federal law make this clear: national leadership and policies are decided by those who hold full membership in the nation. This rule reflects one of the most basic principles of American democracy: that the people who shape the country’s future through their votes are those who have taken on the full rights and responsibilities of citizenship.

For green card holders, this distinction can sometimes be confusing. Permanent residents live, work, and pay taxes in the US, often for many years. Many contribute deeply to their communities. However, until they complete the naturalization process, they’re not eligible to vote in federal elections. The US government considers voting one of the core privileges of citizenship, alongside responsibilities like jury duty.

Legal consequences for non-citizen voting

Federal law also reinforces this rule. The Illegal Immigration Reform and Immigrant Responsibility Act of 1996 makes it a federal offense for non-citizens to vote in federal elections. Even if a person votes by mistake, it can lead to:

• Fines or criminal penalties
• Loss of immigration status
• Long-term issues with future applications

These rules exist to protect fair elections and to ensure that national decisions are determined by citizens.

For permanent residents, the rules may feel restrictive, but they also offer clarity. Learning how voting laws work helps you avoid accidental violations and focus on preparing for citizenship, so when you are eligible to vote, you’re ready to make your voice count.

Are there any exceptions for local elections?

Federal and state elections in the United States are strictly limited to US citizens, but there are a few rare local exceptions. In some municipalities, non-citizens—including green card holders—may be allowed to vote in local elections, such as school board or city council races. These exceptions are uncommon and only apply at the community level.

A few examples include:

• Maryland: Several towns, including Takoma Park and Hyattsville, allow non-citizens to vote in their municipal elections. 
• Vermont: Montpelier and Winooski have extended limited voting rights to permanent residents for local issues. 

These exceptions apply only to local contests, not statewide or federal elections. Eligibility rules can vary widely from one city to another, and they may change over time as local governments review their policies.

Check your local rules

If you live in one of these areas, or think you might, check the most recent information from your city clerk’s office, county election authority, or the official municipal website. Registering to vote when you’re not eligible, even by mistake, can lead to serious immigration consequences.

When in doubt, verify your eligibility before taking any action. If you’re still uncertain, consider speaking with an immigration attorney for guidance. Understanding the rules protects both your status and your future path to citizenship.

The path to voting: becoming a US citizen

If you’re a green card holder hoping to vote one day, the most secure path forward is naturalization, the process of becoming a US citizen. Citizenship is what gives you full voting rights in federal, state, and local elections. It’s the only guaranteed, legal, and lasting way for permanent residents to gain a voice in the nation’s future.

Meeting age and residency requirements

To qualify for US citizenship, applicants need to meet several key requirements:

1. Be at least 18 years old. Applicants must be legal adults to take on the full rights and responsibilities of citizenship.
2. Hold a green card for a set period (usually three or five years). Most applicants must be permanent residents for at least five years. Those married to a US citizen can apply after three years. During this time, you need to maintain lawful status and avoid actions that could jeopardize your residency.
3. Show continuous residence and physical presence in the US. This means living primarily in the country without long or frequent trips abroad, demonstrating an ongoing commitment to life in the US.
4. Demonstrate good moral character. Applicants need to show respect for US laws, pay taxes, and avoid serious criminal issues. Fulfilling obligations such as child support is also essential.
5. Pass the civics and English tests. These exams assess your ability to read, write, and speak basic English and your understanding of American history and government. Preparing for them is both a requirement and an opportunity to learn about the country you plan to call your home.

While the naturalization process takes time, it’s a meaningful milestone. It grants the right to vote, strengthens your sense of belonging, and provides access to the full protections and privileges of citizenship. For many immigrants, earning the right to vote is a symbol of their hard work and a way to honor their journey and contributions to the US.

Some applicants, such as members of the US military and their families, may even qualify for expedited citizenship, making the path to full civic participation even faster.

Once you take the Oath of Allegiance, you can register to vote and participate in every election, from local city councils to presidential races. It’s a moment that marks both the end of a long journey and the beginning of a new chapter as a full participant in American democracy.

Protect your status and plan your path

Green card holders can’t vote in federal or state elections, and doing so can lead to serious immigration consequences. Federal law reserves voting rights for US citizens only, and even an unintentional violation can create long-term legal problems. Knowing and respecting these rules helps protect your path toward citizenship and ensures that your efforts to build a stable life in the United States remain secure.

While green card holders contribute greatly to American society, the ability to vote is one of the key distinctions between permanent residency and full citizenship. Recognizing this difference is an important part of preparing for the next step in your journey, allowing you to focus on achieving the legal and civic milestones that come with becoming a citizen.

If your goal is to participate fully in American democracy, the best way forward is through naturalization. Becoming a US citizen not only grants you the right to vote but also offers greater security, opportunity, and a deeper connection to your community. Understanding the rules is the first step, preparing for citizenship is the next, and it opens the door to becoming an active participant in American civic life.

FAQs

What if I registered to vote by mistake?

If you believe you’ve registered to vote unintentionally, act fast. Contact an immigration attorney for personalized advice, and inform your local election office to correct your registration status. Taking proactive steps shows good faith and may help protect your immigration status.

Can I vote in my home country’s elections?

In many cases, yes. Many countries allow citizens living abroad to vote, often through their embassy or consulate. Participating in foreign elections typically does not affect your US permanent residency, but it’s still a good idea to verify the rules with your home country’s election authorities.

Does serving in the US military give me the right to vote?

Not automatically. Military service can expedite your path to US citizenship, but it does not grant voting rights on its own. You still have to complete the naturalization process before you can vote in US elections.

When you make an online purchase, the process seems fairly straightforward at first—you input your address and contact details, and then fill out your credit card information. But this is where it’s easy to get stuck, because you’re also asked for something called a CVC (card verification code). What is this number, and where do you find it?  In this Remitly blog, we’ll cover what a CVC number on a credit or debit card is, why it plays an important role in keeping you safe online, and how to make sure you use it securely. By the end of this read, you’ll understand how it’s a simple but effective way to protect your financial information in the digital world.

What does CVC stand for?

CVC stands for “card verification code,” and it’s also commonly referred to as a CVV (card verification value), CSC (card security code), or CID (card identification number), depending on your card issuer. These codes all serve the same purpose—to help protect you from online fraud. 

You can think of your CVC as a printed security feature for your physical credit card. Most online retailers require it, and keeping it safe and secure is an important step in protecting your card information.

Where do I find my CVC number?

The location of a CVV on a credit card depends on the card issuer. The following card companies print it on the back of their cards: 

• Visa
• Mastercard
• Discover

The CVC on these is always three digits long and is typically located near or to the right of the signature area. Some newer cards without a signature strip may print the CVC elsewhere on the back. 

On the other hand, American Express prints its CVV codes on the front of its cards, and the number consists of four digits. You can find the code above the main card number.

Why is my CVC number so important?

Your credit card’s CVC number is a key security feature because it proves you have the card in your possession when you make a “card-not-present” purchase, like with online shopping.

While the CVC adds an important layer of protection, it’s not a guarantee against fraud. Data breaches, phishing scams, or saved payment details still expose your card information, so make sure you handle your card carefully and only shop on trusted sites.

The CVC isn’t stored digitally in the magnetic strip or chip. Instead, those parts of the card contain their own encrypted verification codes for in-person transactions. This helps prevent counterfeit cards and highlights why it’s important to be aware of card skimming (which we look at in the next section). 

How to keep your CVC safe

Protecting your card verification code is a simple but powerful way to reduce your risk of fraud. Here are a few tips to help you stay secure:

Never share it

Only input your CVC when you’re using a secure and trusted website to make an online purchase. Input it only in the section specifically designed for this code. Never share your CVC by email, text message (including WhatsApp), or over the phone.

Only shop on secure websites

The best way to tell if a site is secure is to make sure the website address begins with https:// and shows a small lock icon in the browser’s address bar. This means the site uses encryption to protect your data. Sometimes, you need to dig a bit deeper and click on the settings icon in the address bar, which will display a pop-up that states whether the site is secure. If you’re unsure, look up customer reviews or check that the business has clear contact information and privacy policies.

Be wary of phishing

Fraudsters often pretend to be from a reputable company by email, text, or phone, trying to convince you to hand over your credit card data. Remember, a legitimate company will never ask for this information over the phone or via text or email, so don’t click on any links or attachments asking for this data, even if it seems real.

Don’t write it down

Avoid storing your CVC anywhere other than on the card itself. Writing it down, taking a photo, or saving it in a notes app can put your financial safety at risk. 

Beware of card skimming

Card skimming happens when criminals capture your card information using hidden devices or malicious software. There are two types of card skimming to be aware of: physical and digital.

• Physical card skimming: Criminals attach a device that records your card’s sensitive data at the point of use, such as at an ATM or gas pump. Always inspect card readers for loose parts or anything that looks out of place.
• Digital card skimming: Hackers can insert malicious code into websites to steal card information during checkout. Shopping only on secure and reputable websites can reduce this risk.

Consider using digital wallets

Payment apps like Apple Pay and Google Pay use a different mechanism to pay for goods online, known as tokenization. This replaces your card details with a unique digital code, making it much harder for scammers to commit fraud. Consider installing a digital wallet app on your smartphone and use it when buying online or in person.

Your CVC protects you from financial fraud

Your card verification code (CVC) adds an important layer of security when you shop online or by phone. It helps confirm that you’re using your physical card to make a purchase.

You can usually find the CVC on the back of your Visa, Mastercard, and Discover card, where it’s a three-digit number, or on the front of your American Express card, where it’s a three-digit code.

Following a few simple safety guidelines will go a long way in helping to protect you from falling victim to fraud and unauthorized use of your card, allowing you to shop online with confidence and peace of mind. 

FAQs

Is the CVC the same as my PIN?

No. Your CVC is used to verify online purchases, while your PIN is used to verify in-person transactions at ATMs or card terminals.

Do all cards have a CVC?

Most major credit and debit cards around the world have a CVV for added security, although the location and number of digits vary by card issuer. If you can’t locate your code, contact your bank or card issuer for guidance.

What should I do if someone knows my CVC?

If you suspect your CVC or other card details have been exposed, contact your bank immediately. The bank can cancel your card and issue you a new one, which will have completely new details, including a different CVV.

Can I use my card without the CVC? 

Most reputable websites require a CVC to confirm a purchase. If a site doesn’t ask for it, this could be a red flag. Proceed with caution or avoid entering your card details altogether.

What do I do if I lose my card? 

If you lose your card, treat it as though it’s been stolen. Call your bank straight away and ask them to cancel the card and issue you a new one. Be sure to review recent transactions and update any recurring payments once you have your new card.

Why did card companies start using CVCs? 

With the rise of online shopping, card companies needed to find a way to keep their customers protected against fraud in the digital world. A 3- or 4-digit code physically printed on the card was an effective way to ensure people’s data was more secure.

Is the CVC the same as my card number? 

No. Your card number is a unique identifier that identifies the card as belonging to your bank account. The CVC number is a three- or four-digit code that appears on your card to verify transactions and reduce fraud.