In this article, we’re exploring what is and how to send a remittance, meaning sending cross border payments.
The most common example of remittance refers to sending money to family, usually in the form of financial aid. This is typically the case for migrant workers, who leave their home country to work and then send funds back to their families.
This article is part of our series on banking basics, ranging from opening different types of bank accounts around the world to understanding how various aspects of the banking system operate.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Remittance Meaning
- What Are Examples of Remittances?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Remittance, meaning sending money abroad, can include a money transfer, international payments, or other cross-border payments. In short, a remittance is a payment that is sent from one jurisdiction to another.
Not surprisingly, a foreign remittance is usually sent with the help of a financial institution, international transfer service, or other remittance providers.
Importantly, each of the available remittance services will charge their own fees and costs. So, it’s important to consider all of the available remittance solutions before choosing which one is best for your needs.
Of course, depending on where the funds are being sent to and from, there may be specific remittance regulations in place that individuals need to observe. Of course, the financial institutions sending the transfer are usually able to inform you of this. Though, it’s important to be aware of any unique remittance process or approval requirements prior to sending money.
What Is the Difference Between a Bank Transfer and a Remittance Money Transfer?
The main difference between a bank transfer and a remittance money transfer is that a bank transfer typically refers to transfers from one bank account to another bank account anywhere in the world (including in the same country).
On the other hand, a remittance money transfer typically refers to cross-border transfers, often to support family members. We will take a look at several specific examples of remittances in the next section.
What Are Examples of Remittances?
There are a wide range of examples of remittances and remittance services, including online transfers, bank transfers, money transfer companies, and more. Here is a list of examples of some of the most commonly used remittance services.
- Online money transfer services (e.g. Wise)
- Money transfer companies (e.g. Western Union)
- International bank transfers
- Cash delivery services
- Cryptocurrency remittances
- And more
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into the meaning of remittance. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Does Remittance Mean in Payments?
In payments, remittance means sending money from one country to another. There are a wide range of reasons to send remittances, including to support family in a foreign country, contribute to humanitarian projects, and more.
Is a Remittance a Receipt?
No, a remittance is not a receipt. Instead, a remittance is a type of financial transaction that specifically involves sending money across borders to an individual in another jurisdiction.
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