What Is a Remittance? Meaning, How It Works and Your Rights When Sending Money Abroad
In this guide
- Remittance meaning: what does remittance mean?
- What counts as a remittance transfer in the United States?
- What must the provider tell you?
- Can you cancel a transfer?
- What if something goes wrong?
- Do these protections always apply?
- How to send a remittance safely
- Common mistakes to avoid
- FAQ
- Key takeaways
- Related guides
- Sources
Quick answer: A remittance is money that a person sends to family or others in another country, most often money that migrants send home. In the United States, the Consumer Financial Protection Bureau (CFPB) defines a remittance transfer as an electronic transfer of more than $15 sent from the U.S. to people or companies in another country through a remittance transfer provider. Before and after you pay, the provider must tell you the fees, exchange rate and amount that will be delivered, and you can cancel at no charge within 30 minutes unless the money has already been picked up or deposited.
Millions of migrants send money to their families every month. These payments, often called remittances, are one of the most common financial tasks for people living abroad, and also one where small differences in fees, exchange rates and mistakes add up. This guide explains the remittance meaning, how the money moves and which protections the CFPB describes for transfers sent from the United States. If you send from another country, the rules there may differ, so check your local regulator.
Remittance meaning: what does remittance mean?
If you want to define remittance in simple words, it is a payment sent from one country to another, usually by a worker living abroad to relatives at home. The money may go to a bank account, a mobile wallet or a cash pickup point. When people talk about “sending remittances” (the plural form is common), they mean this kind of transfer. For a practical overview of the whole process, read our guide to sending money home from abroad.
What counts as a remittance transfer in the United States?
According to the CFPB, a remittance transfer is an electronic transfer of more than $15 sent from the U.S. to people or companies in another country through a remittance transfer provider. Banks and other financial services companies can be providers. A company is exempt if it made 500 or fewer remittance transfers in both the prior and the current calendar year.
What must the provider tell you?
The CFPB says that before and after you pay, the provider must give you information about:
- Fees and taxes.
- The exchange rate, if one applies.
- Fees charged by foreign agents or institutions.
- The amount expected to be delivered.
- Possible extra foreign taxes or fees.
- When the money will be available.
- Your cancellation rights, the error procedures and how to file a complaint.
Providers may use estimates if they are clearly labelled. If you think an estimate is wrong, ask the provider. Receipts and disclosures must be in your language if the provider uses that language in its advertising or marketing where you sent the money, or if the transfer was made in that language.
Can you cancel a transfer?
Yes. The CFPB says you can cancel at no charge within 30 minutes after paying, unless the money has already been picked up or deposited. If you realise you entered the wrong amount or recipient, act immediately. Our step-by-step guide explains how to cancel an international money transfer.
What if something goes wrong?
| Step | What the CFPB says |
|---|---|
| Report a mistake | You have 180 days from the disclosed availability date |
| Provider investigation | Providers must investigate, and generally have 90 days to do so, then tell you the result |
| Outcome | For issues such as money that never arrives, you may be able to get a refund or a resend |
Report problems as soon as possible, and keep your receipt and transfer details. If the recipient got less than expected, see what to do when the recipient received less.
Do these protections always apply?
No. The CFPB notes that if a company is not a remittance transfer provider under federal law, these federal protections do not have to apply. Other protections may depend on how you send the money and on your state’s laws. Check that the company is a regulated provider before you send a large amount.
How to send a remittance safely
- Compare the total cost. Look at the fee and the exchange rate together. See our guide to hidden fees in international money transfers.
- Read the disclosure before you pay, including the amount the recipient will get.
- Double-check the recipient details before confirming.
- Keep the receipt and the transfer reference.
- Use the app carefully the first time. Our guide to using a money transfer app for the first time walks you through it.
Common mistakes to avoid
- Comparing only the advertised fee and ignoring the exchange rate.
- Sending money to someone you have not verified. Read about money transfer scams.
- Waiting too long to report an error.
- Using an unregulated service because it looks cheaper. See whether it is safe to send money abroad.
FAQ
What is the simple meaning of remittance?
Money sent to another country, usually by migrant workers to their families.
How do you define remittance?
A remittance is a payment sent across borders, most often from a migrant worker to family at home. In U.S. law, the CFPB defines a remittance transfer as an electronic transfer of more than $15 sent to another country through a provider.
What are remittances?
Remittances are the money migrants send home to relatives. They can go to a bank account, a mobile wallet or a cash pickup point.
How much counts as a remittance transfer in the U.S.?
Per the CFPB, an electronic transfer of more than $15 sent from the U.S. to another country through a remittance transfer provider.
Can I cancel a transfer after I pay?
Yes, at no charge within 30 minutes, unless the money has already been picked up or deposited.
How long do I have to report a mistake?
180 days from the disclosed availability date, according to the CFPB.
Do these rules apply if I send from the UK or Canada?
No. This article describes U.S. federal rules. Check your own country’s regulator for local rules.
Key takeaways
- A remittance is money sent to another country, most often by migrants to family.
- In the U.S., providers must give you fee, rate and delivery disclosures.
- You can cancel within 30 minutes and report errors within 180 days.
- Protections depend on the provider and where you send from, so use regulated services.
Related guides
- Sending money home from abroad: the complete guide
- Remittance transfer rights in the USA
- Hidden fees in international money transfers
- Money transfer scams and how to avoid them
- Is it safe to send money abroad?
- How to use a money transfer app for the first time
- International wire transfers explained
- Your first 90 days in a new country
This article is general information, not legal or financial advice. It describes U.S. federal rules as published by the CFPB. Rules change, so confirm with the regulator in the country you send from. Last updated: October 2026.
Sources
- Consumer Financial Protection Bureau: What is a remittance transfer?