Deriving from the term 'remit' (meaning “to send back”), remittance refers to a sum of money that is sent back or transferred to another party. It covers virtually any payment, from bills to invoices, and is typically used with overseas payments – when one party is based in another country.

Federal law defines “remittance transfers” as most electronic money transfers from people in the United States who used “remittance transfer providers” to send money to recipients abroad.

What Does Remittance Advice Look Like? Remittance advice notifies the recipient of a payment, with the details included. Paper remittances include a detailed check stub, perforated invoice, or billing account statement section that is detached and mailed with the payment indicating the amount paid.

It covers virtually any payment, from bills to invoices, and is typically used with overseas payments – when one party is based in another country. In addition, remittance can also cover personal money transfers made to friends and family.

Though a remittance can refer to any kind of monetary transfer, it usually describes someone sending money to another country. For example, you might be sending funds to your family abroad, whether as a wedding gift, or contributing towards bills back home.

Remittance slips typically provide information about which invoices are being paid and the amount of each payment. Occasionally, the remittance advice slip will show any adjustments made to the payment total (such as deductions or credits).

In short, remittance advice is a proof of payment document sent by a customer to a business. Generally, it's used when a customer wants to let a business know when an invoice has been paid.