Remittances Are Defined in the Readings as

When you need to send a money transfer, do y'all come across abbreviations and financial jargon? Let's shed some low-cal on what information technology all ways.

What is a remittance?

The term 'remittance' derives from the give-and-take 'remit', which ways 'to ship back'. Remittance refers to an amount of money transferred or sent from one party to another, ordinarily overseas.

Remittances can be personal money transfers fabricated to family and friends, besides equally business concern payments.

Today, more than remittances are being sent than ever before, and two key factors are driving this increase:

• Migration – more than people are now choosing to live and work abroad. Therefore, many remittances are made by people working and living away to family back habitation.
• Globally connected businesses – the internet makes it easier than always for businesses to connect and collaborate with suppliers, clients and employees all around the world. This has resulted in a abrupt increase in overseas remittances paying for business invoices.

How to transport a remittance

If you demand to pay a remittance, there are several ways to do so, including:

• Wire transfer/ depository financial institution transfer
• Greenbacks pickup
• Mobile money
• Habitation delivery

The cost you lot need to pay depends on the provider and service that you lot choose.

Offline companies like Western Union or MoneyGram used to be large players However, people are now shifting more towards online providers, such as WorldRemit, every bit they offer the best value for coin.

Jargon buster

Ready to ship a remittance? Use our handy guide to demystify remittance jargon and simplify the process of sending money abroad.

3D Authentication

If your card uses 3D secure, a window will appear on the screen when yous're making an online payment, asking y'all to enter an additional security code before the payment can be put through. This extra layer of security is designed by your card provider and helps to protect you from credit and debit card fraud.

ABA Number

Also known as a bank routing number, an ABA number is a nine-digit code used to identify banks in the U.s..

ACH

ACH (automatic clearing house) payments are made through the USA's ACH network. It's a network that provides bank transfers betwixt bank accounts in the USA.

AML

AML (anti-money laundering) processes are used by financial institutions to detect and foreclose illegal money laundering activities used by criminals to disguise money they accept gained illegally as lawful income.

Cash advance

A short-term loan offered past banks and other financial institutions, unremarkably for credit cards. Greenbacks advances often come with high fees and interest rates.

Chargeback

A chargeback is a way of disputing a card transaction. If a chargeback is successful, it will void the menu transaction, and the bank volition remove the funds from the merchant'south account and credit them back onto the cardholder's account.

Clearing

Clearing refers to the processes and procedures that accept place between requesting to wire money and the point when the transaction is complete.

Substitution charge per unit

The amount that one currency is worth compared to another currency.

FCA

The U.k.'s financial regulatory body. The FCA (Financial Conduct Authority) is an independent body that protects consumers and promotes healthy competition between the UK's financial service providers.

Financial institution

A fiscal institution is a company that provides financial services. Examples of fiscal institutions include; banks, building societies, mortgage companies, credit unions, investment banks, insurance companies, pension funds, and money transfer services.

Forex

Forex (foreign exchange market) is an electronic network of banks, brokers, institutions and traders exchanging strange currencies.

IBAN

IBAN stands for International Bank Account Number. Information technology is an internationally recognised way for banks around the earth to identify an individual'due south state, bank, and account when money is beingness sent overseas. An IBAN consists of up to 34 messages and numbers. It can unremarkably be institute on your online cyberbanking or past contacting your bank.

Interchange fee

Every time a merchant takes a credit or debit carte payment from a customer, they are charged an interchange fee past the card network.

KYC

A KYC ( Know Your Customer ) process is carried out by financial companies to verify the identity of their customers to prevent their services being used for coin laundering and other illegal activities.

Limit

Virtually banks and coin transfer services have rules in identify that limit the amount of money that you tin send in a single transfer or in a specific time. Limits are normally in place to comply with the laws and regulations of the countries you are sending money from and to.

Local agent

A small, local business that has partnered with a money transfer provider similar WorldRemit to offer international money transfer services in-store.

Proof of deposit

A verification or an official confirmation proving that funds were credited to a depository financial institution account or received past a recipient.

Peer-to-peer service

A platform, like a website or money transfer app, that allows individuals to ship money online to each other straight without a bank or foreign substitution provider being involved. WorldRemit is a peer-to-peer service.

Pre-authorisation

Pre-authorisation is a temporary concord of funds on a debit or credit carte du jour for a vendor to capture the funds. Money is not taken out of the banking company account.

Prepaid menu

A card that you deposit funds onto and then apply in-store or online to make purchases as yous would with a debit or credit card. Prepaid cards are a safer alternative to carrying greenbacks, and you don't need a bank account to go one. With WorldRemit, you can pay with a prepaid carte as long as information technology's Visa, Mastercard or Maestro.

Call back

Trying to think money is trying to reverse a completed transaction back to the sender. Funds have to exist retrieved back via the aforementioned channels. This process is lengthy and not ever guaranteed.

Recipient

The private or business to whom the money is being sent.

Sender

The individual or business who is sending the coin.

Wire transfer

An electronic money transfer sent through a network of banks and money transfer providers around the world.

Send money with WorldRemit

Sending remittances is unproblematic when you utilise WorldRemit – almost similar sending a text message.

Download our app and use our user-friendly service to transfer money to 150 countries around the world using your smartphone, laptop or tablet. Information technology'south so piece of cake!

Sign up with WorldRemit

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Source: https://www.worldremit.com/en/stories/story/2020/10/28/what-is-remittance

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