[ri-mit-ns] 
| 1. | the sending of money, checks, etc., to a recipient at a distance. |
| 2. | money or its equivalent sent from one place to another. |
| re·mit·tance (rĭ-mĭt'ns) n.
|
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 Commentary
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 Links
What Is Money?
See also: Bank, Debt, Obligation, Retail Banking, Transfer Payment, Wire Transfer
Also spelled: remmitance, remitence, remittence
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