What is it called when immigrants send money home?
Immigrants are the people, who work, study or live in settlements abroad (far from their hometowns). They often go abroad for some reasons and the biggest reason is poverty in developing countries just like the content in the article “How remittance helps economy in Vietnam”
So, what is it called when immigrants send money home? Let’s find out with FinFan.
What is it called when immigrants send money back home?
The money that immigrants send home is called remittance. The immigrants can send their remittances back home in banking and banking less types.
The difference between remittance and payment
What is a payment?
*Payment is tied to the exchange of money for a service or product. Payment is made via banknotes and coins (cash), deposits and credit on an account by a financial institution or a similar institution.
Although a remittance can be a payment sent in response to receiving a bill, it's a term that's also used to describe funds sent internationally. For instance, when money is sent by someone in Vietnam to family or friends in another country, they are sending a remittance.
Examples of remittances and payments
Examples of remittances
K is a student at Harvard University, and he comes from Vietnam. He entered Harvard on a scholarship, so he doesn’t have to pay for tuition fees. Outside of college hours, he works part-time for a restaurant and earns money to make ends meet and has a little money to send home to help his parents pay his brother’s tuition fee.
He often transfers this money by using the MoneyGram service and his parents can get money in their banking account just a few minutes thanks to the cooperation between MoneyGram and FinFan in Vietnam.
The other example comes from B from Vietnam, an abroad worker in Singapore. She has been working in Singapore for 5 years and has been monthly using Thunes – a global payment infrastructure company to send her remittances to Vietnam through the collaborated between Thunes and FinFan service, which can help her send directly money to her brother MoMo e-wallets.
Examples of payments
Examples of payments can happen at any time in real life, such as you can pay for the electric bill, schooling bill, phone bill, etc.
Payments also happen in the deal between two companies about using services or trading wholesale products. After using services or receiving goods from the supplier, the receiving party must take payment for the provider’s bill.
How to send remittances or pay remittances online?
*You can send it by visiting your bank and requesting a wire transfer or ACH transfer. Or, you can send it using a money transfer service that specializes in transfers, domestic and international. You can use an app such as PayPal to send a remittance to another country. These electronic services move money quickly, often within a day. If you prefer, you can always send a money order by U.S. mail but how soon it will arrive at its destination depends on which service you use (e.g., first-class international mail or Express mail).*
How long does payment remittance take?
“How long does overseas remittance take?” is a popular question in Vietnam and other developing countries. They always hope that they can receive their abroad relatives’ money.
However, this problem always depends on the service that their relatives often use. Nowadays the process of these remittances can take in only few minutes by using some electronic services such as two above FinFan mentioned examples of remittances.
FinFan hopes that with this essay, you can know more about remittances after the article “What is a remittance? Types of remittance in banking and banking less”