How do you send money to Philippines or your home country? This article will walk you through the entire concept of remittances. It will include its definition, its background, and its volume on a global scale.
Remittance: – Oxford Advanced Learner’s dictionary, in its 7th edition, defines Remittance as ‘’a sum of money that is sent to somebody to pay for something’’. This word is derived from the root word remit, which means ‘’to send back’’. Thus Remittance can be defined as a sum of money one send back to someone for any purpose.
Background: – Most people from developing countries go to the developed countries to get better work opportunities. They earn money in foreign lands in the currencies of countries they have migrated to. Most of the time, these currencies are stronger than the currencies of their countries of origin. Or perhaps, money transfer to Philippines and other developing countries is the reason why people go to foreign lands. These workers are called expatriates. They send a part of their earnings in foreign currencies back to their families in their countries of origin.
Alternative to Remittance: From what we have discussed about Remittance, we can call Remittance an ‘’international money transfer’’ as an alternative. Because there is no difference between the concepts of the two except for words.
Let’s see a few terms which are used commonly while you transfer remittances.
Payment remittance:- It means sending money to another person in another place. This definition fits the definition of Remittance. Therefore, it can be used as a synonym for the word Remittance.
Remittance advice:- It is a confirmation document that is included in the payment. It is required when you are processing a business transaction. For example, you have purchased a product. Now, you, as a customer, will send remittance advice to your supplier as a confirmation of the amount and what the amount is paid for. This document is used more as a courteous gesture than a business obligation.
Remittance address:- It is the address of the receiver of money. The ones who receive remittance are normally called a recipient or a beneficiary. It is important to fill in the details concerning the address because any error in address details can create a problem for the sender and beneficiary. Besides, a mistake or an error can cause a delay in the online money transfer to Philippines or your receiver’s country of origin.
Remittance float:- It is time a remittance takes to reach the beneficiary. In other words, you can say that the total time an international money transfer or remittance takes to reach the recipient; is called a remittance float until the transaction completes.
Here’s a brief look at the ways to send remittances.
Typically, people send money through a wire transfer bank, which takes about five to seven working days. But, there are several reputable online money transfer companies such as ACE. Due to its speedy and secure transfers coupled with low fees and transparent charges mechanisms, people send their remittances to India and many other countries worldwide through ACE.
We have mentioned India particularly here because it is the top recipient of remittances, with the volume hitting a staggering 83.1 billion USD in 2020 alone.
Conclusion:- We have completely understood the entire concept of remittances in this article. We threw light on the terms used for sending or receiving remittances. And initiating a payment remittance is as easy as approaching credible and reputable online money transfer companies such as ACE whose services you blindly trust, provide details and begin the process. If you send money to the Philippines online through ACE, it will be beneficial for you to save money and time.