Remittance

AAA

DEFINITION of 'Remittance'

The process of sending money to remove an obligation. This is most often done through an electronic network, wire transfer or mail. The term also refers to the amount of money being sent to remove the obligation.

INVESTOPEDIA EXPLAINS 'Remittance'

When a person sends a check to the government to pay for a tax bill, the check is remittance to remove the tax obligation. If you were to send money to a friend in Europe through a wire-transfer service, the sum of the payment is the remittance.

RELATED TERMS
  1. Controlled Disbursement

    A technique commonly employed in corporate cash management. Controlled ...
  2. Delayed Disbursement

    A cash management technique that involves a company paying vendors ...
  3. Obligation

    The legal responsibility to meet the terms of a contract. If ...
  4. Remittance Float

    The time it takes for a payment to be sent from the remitter ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Wire Transfer

    An electronic transfer of funds across a network administered ...
Related Articles
  1. Introduction To Remittances
    Economics

    Introduction To Remittances

  2. What Is Money?
    Economics

    What Is Money?

  3. How Bank of America Holds 1/8 of All ...
    Stock Analysis

    How Bank of America Holds 1/8 of All ...

  4. JPMorgan Chase: Too Big (And Profitable) ...
    Stock Analysis

    JPMorgan Chase: Too Big (And Profitable) ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center