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What is a remittance? A remittance is money that’s sent internationally from one party to another. Funds sent via a remittance go through an international payment network, such as the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system.
Payment remittance is a money exchange using a transfer. One party will send funds to another individual or entity, typically using electronic transfer or wire submission. Transactions of this kind are often done internationally and can be completed almost immediately.
A remittance is any form of payment completed between two parties for goods or services received. It is a broad term that can refer to many forms of payment. In accounting terms, remittance generally refers to any transfer of payment which completes a business transaction.
In other words, a remittance is the sum of money being sent, generally to someplace abroad. In common usage, the word can refer to moving money by any method - a wire transfer, online transfer, by mail or using a credit or debit card to move the money.
Remittances can work either as an alternative source of credit for investment – and therefore react to productivity shocks – or as insurance to smooth income and consumption, and therefore react to income shocks.
A remittance is simply a payment you send to someone else, usually to cover an invoice or bill. Think of it as the money you send to settle up—whether you’re buying supplies or paying a vendor. Remittances complete the transaction and can happen by check, electronic transfer, or cash.