If you’ve ever traveled abroad or paid a bill using a smart phone or a bank, the probability is high that at one point or another, you have used a remittance service. Today we’re going to discuss what a remittance service is and how to use one.
Simply put, remittance is the act of transferring money or repayment from Point A to point B. The definition stems from the word “remit” which literally means the transfer of funds.
There are also several reasons why you may need to use a remittance service: you may need to transfer money to someone you know living overseas, you may need to pay an overseas client who works for you, or you may need to pay for education in an overseas country to name a few things.
With all that said, here are the top three things that you should know about remittance services:
1. Inward vs. outward foreign remittance
In economic terms, there are several types of remittance in which one should be aware of before using it.
Foreign remittance is the most common form of remittance, when a member of a nation moves to a different country and works in order to send money back in order to provide for their families their home nation.
Foreign remittance is often classified into two types: inward foreign remittance and outward remittance. Inward forward remittance is what most imagine when sending money home, when money is received from abroad, for example if one lives in the United States but needs to send money to family in Columbia, the family would receive inward forward remittance.
Outward foreign remittance is the polar opposite of inward foreign remittance, which is when the member who is sending money to family back home using a remittance service online.
2. Remittance services help the economies of different countries
It has been noted that remittance has had a significant impacts on the economies of the home nations and for the first time, allowed for a greater quality of life for the families in developing nations.
There are also several foreign remittance methods that should be mentioned, such as the issuance of a cable transfer, mail transfer, money orders, travelers checks, and so on.
These are all excellent methods but can be complex and often require a small surcharge in order to make the transfer, which is fine when you’re in a pinch, but could add up to be quite expensive the more money that is sent.
3. Using a remittance service today is easier than ever before
Using remittance service can be both extremely simple and extremely complicated. If you’re an expat of a country, be aware of expensive processing fees mentioned in the last paragraph.
As far as using remittance services, electronic remittance payments are the simplest and easiest to use. You simply need to create an account, link your payment option, insert your recipient’s personal information, and then convert and send the funds. It really is that simple.
Banks, and money centers which can be found in most grocery stores are excellent options if you’re going to send a remittance payment here and there. Just be advised that these can cost up to twenty percent of your sent payment so it would be recommended that this option is seldom used.
Using a remittance service
As you can see, remittance payments are extremely crucial to the global economy in both developed and developing nations. Never before has it been easier to send support across the world instantly and thankfully its becoming easier and cheaper for everyone to utilize.