Legal Definitions - remittance

In legal and financial contexts, a remittance refers to:

• The act or process of sending money to another person, organization, or location.
• The specific sum of money that is sent.
• The instrument or method used to send the money, such as a check, wire transfer, or electronic payment.

Here are some examples to illustrate the concept of a remittance:

• International Family Support: An individual working in another country regularly sends a portion of their earnings back to their family in their home country to help with living expenses.
  This scenario demonstrates a remittance in all three senses: it is the act of sending money across borders, the specific funds transferred to the family, and the method (e.g., an international money transfer service) used to facilitate the payment.
• Business Invoice Payment: A small business receives an invoice from its office supply vendor and uses its online banking portal to transfer the owed amount directly to the vendor's account.
  Here, the payment made by the business is a remittance. It represents the action of settling the debt, the actual money transferred to the vendor, and the electronic bank transfer itself as the instrument of payment.
• Subscription Renewal: A customer renews their annual membership for an online software service by authorizing a payment through their credit card on the service's website.
  This is an example of a remittance because it involves the process of sending money for a service, the funds deducted from the customer's account, and the credit card transaction serving as the instrument for the payment.