Dictionary of Banking Terms: remittance
remittance
- payment toward satisfaction of a debt, whether in cash or cash equivalents, such as checks, drafts, and other negotiable instruments.
- payment on an installment loan or open-end credit account, forwarded through the mail to a lock box, along with a remittance document, a machine readable billing document encoded with the customer's account number, and the amount due, plus any late charges, if the loan payment is delinquent.
- proceeds from a check submitted to another bank for collection.
