What is a foreign remission?
An amount of money that you send to someone or the act of sending payment to someone, transmittal of money (as to a distant place).
Instances of International remission
There are many situations in which money is remitted abroad. For example, US businesses often buy bulk products from China and must make a payment when they purchase goods.
Most foreign remissions can be broken into four different use cases:
- personal to personal (e.g. a foreign exchange earner sends money back to his or her home country to help pay for medical treatment
- personal to business (e.g. Someone sends money to a foreign aid organization for natural disaster assistance
- business to business (e.g. a business remits money overseas to purchase goods from a foreign factory)
- business to personal (e.g. an international company pays workers who reside in a different country
Foreign remittances are a huge part of the global economy
Some social scientists believe the global implications of foreign remittance are much larger than we think because the practice is so common.
In 2014, $583 billion in USD was transferred between countries — developing countries received $436 billion of which.
People in developing countries who often receive foreign remittance are more likely to have bank accounts, which may contribute to the economic development of those countries. And personal remittances sent following a natural disaster often surpass official aid.
There are many methods of sending a foreign remittance from foreign. You can use:
- A bank draft
- A foreign bill of exchange
- A mail transfer
- A traveler’s check
- A personal check
- An international money order
- By guaranteed mail
- An electronic mail transfer
- A traveler’s letter of credit
- A circular note
That’s a lot of ways to make an international money transfer. However, some of the simplest and most common methods of sending a remittance payment are:
- With a money transfer provider, like TransferWise
- Online via your bank
- A cash remittance service, like Western Union
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