Every Money Transfer And Remittance Term You Need To Know: Letter R

Last updated: October 05, 2022

Remittance

A remittance is defined as a payment from one party to another. Remittances are different from local or domestic money transfers or wire transfers in the sense that they are generally international in nature. In the international money transfer ecosystem, the term remittance implies the movement of money internationally.

The World Bank, in fact, uses the word remittance throughout their publications as a standard term for international money transfers.

Expats, foregin students, immigrants, temporary workers, travelers and anyone who lives, works or travels abroad will likely send or receive a remittance at least one during their overseas stay.

Also see: Money Transfer, Money Transfer Agent, Money Transfer Operator (MTO), Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance Service Provider
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance

Remittance Corridor

A remittance corridor is a pair of international markets that are involved in a cross-border payment i.e., remittance. Remittance corridors are expressed as country pairs instead of currency pairs.

The USA-Germany remittance corridor, for example, represents USA to Germany international money movement. Remittance corridors are also sometimes called remittance routes.

Also see: Country Corridor, Currency Corridor
Further reading: What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance

Remittance Exchange Rate

The exchange rate that you get on your international remittance is called the remittance exchange rate. Also called money transfer exchange rate, or simply exchange rate, it represents the cost of the destination currency in terms of the source currency.

For instance, an exchange rate of 1 USD = 1.1102 EUR means that 1 US Dollar can be exchanged to obtain 1.1102 Euros.

The remittance exchange rate is one of the biggest factors that influence the final payout that your overseas recipient will get. Therefore, you should try to find better exchange rates if possible. Of course, rates are not the only factor to consider - you should also look at transfer fees, sending limits, transfer speed, security and many other aspects.

Also known as: Money Transfer Exchange Rate
Also see: Money Transfer, Money Transfer Agent, Money Transfer Operator (MTO), Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance, Remittance Service Provider
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance

Remittance Service Provider

A remittance service provider is a financial organization that helps you make international money transfers, or remittances. Remittance service providers can be banks, dedicated money transfer businesses, other financial institutions and sometimes even businesses like mobile operators and cryptocurrency platforms that choose to also cover international remittances.

Nowadays, there is a huge number of remittance service providers available. They differ in numerous ways, and have pros and cons to their products and services. Therefore, you should do detailed research and full due diligence before you decide to go with a provider for your overseas money transfers.

Also known as: Money Transfer Operator (MTO)
Also see: Money Transfer, Money Transfer Agent, Online Money Transfer, Online Remittance, Peer-to-peer (P2P) Transfer, Remittance
Further reading: Best Ways to Send Money Internationally
Complete Guide to Send Money Online
What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance

Remitter

A remitter is a person who sends a remittance. In other words, the sender of an international money transfer, or remittance, is the remitter.

A remitter can be an overseas worker or immigrant sending money overseas to their family back home, or a multinational business paying their employees in other countries, or a student remitting funds from their home country to their overseas educational institution, and so on. Basically, anyone who sends money abroad, whether individual or business, is a remitter.

Also see: Remittance
Further reading: What Is a Remittance and How Does It Work?
How To Make The Most Of Your Remittance