Remittance Definition
When someone sends money to another person or business, this is called a remittance. The word comes from the Latin root remittere, which means ‘to send back.’ It’s used to describe both personal and business payments.
There are two main types of remittances: international and domestic. An international remittance is when money is sent from one country to another. A domestic remittance is when money is sent within the same country.
Remittances are a crucial part of the global economy. They allow people to support their families and loved ones, as well as businesses and investments. In 2019, the World Bank estimated that $689 billion was sent in remittances worldwide.
There are a few different ways to send a remittance. The most common is through a bank transfer or wire transfer. Money can also be sent through an online service, such as PayPal or Venmo. In some cases, cash may be hand-delivered.
When sending a remittance, it’s important to consider the fees involved. These can vary depending on the method used and the countries involved. For example, an international bank transfer may have higher fees than a domestic one. Make sure you understand the costs before sending any money.
