At Remitly, our specialty is sending money internationally. We know this process can be daunting, especially when unfamiliar terms like “remittance address” appear. Understanding what a remittance address is can help you feel more confident in making smooth, secure international transfers.
Millions of people send money internationally each year. Knowing the ins and outs of the process can ensure that your funds reach their intended destination safely. This guide will clearly explain what a remittance address is, why it matters, and how to use it correctly for your transfers.
What is a remittance address?
A remittance address is the specific location where money transfer payments or instructions are sent. Remittance addresses are common in business or commercial financial transactions, as businesses prefer to separate their financial transactions from general mail and communications. It is uncommon for individuals to have a remittance address.
During a money transfer, you might come across a space to name a specific remittance address. Here, you can input information about the business or company you’re sending money to so that all financial documents are correctly sent to that location.
Types of remittance addresses
Remittance addresses are locations that can accept mail or communications about financial transactions. However, they are often different from a company’s main shipping address. Here are a few common types of remittance addresses:
- Home addresses: A remittance address is only the same as a personal or home address if you’re sending money to an individual recipient.
- PO boxes: Businesses might choose to have a post office or PO box where all of their mail and communications related to finances is collected separately from their general mail. A PO box will be used for traditional transfers, where paper communication might be used.
- Bank remittance addresses: An address at a bank location is used when sending money directly to bank accounts that are managed by that branch.
- Money transfer service addresses: These are addresses used by companies like Remitly, Western Union, and others to automatically handle the details of your transfer.
- Digital wallet addresses: When you’re making a transfer through an online payment platform or mobile money service, a digital wallet address might take the place of a physical address.
The type of remittance address that you’ll use to make a transfer depends on whether your recipient is an individual or a business and whether you’re making an online or traditional payment.
When do you need a remittance address?
You might be wondering why—and when—a remittance address is needed. Remittance addresses help prevent payment errors and ensure that funds reach their intended recipient. In essence, remittance addresses help to keep financial transactions as secure as possible.
When you’re making an international transfer, remittance addresses become even more important in ensuring that funds are correctly routed.
Bank-to-bank transfers versus money transfer services
When you request a digital money transfer, it’s typical to do so directly through the bank or using a money transfer service, like Remitly.
If you’re making a bank-to-bank transfer, the remittance address will be the physical address of the bank branch where the recipient’s account is managed.
If you’re using a money transfer service, the remittance address will be the physical address of the payment processor.
Automatic versus manual remittance input
When you’re setting up a transfer, you’ll be asked to manually input the remittance address if it’s a home address, business address, PO Box, or foreign bank.
Using a reputable money transfer service, like Remitly, can provide you with the benefit of automatically inputting the remittance address information. Remember, money transfer services use the address of the payment processor as the remittance address. This means the transfer service works as a trusted middleman between the sender and the recipient of funds.
By using a reliable money transfer service, you’ll eliminate one step of setting up the transfer, which helps you avoid a potential error. This will ensure that your funds are sent correctly and as fast as possible.
How to find the correct remittance address
If you have to manually input a remittance address, there are some best practices you can follow to make sure that you have the correct information. Providing an accurate remittance address to complete a transfer is one of the most important ways of avoiding delays in your funds reaching their destination.
For a business
- Official business documents: If you’ve received an invoice from a company, their remittance or payment address will be on the document. Otherwise, you can look for the address on statements or contracts.
- Company website: Many business websites will have the remittance address listed. Try navigating to “Contact Us” or “Payments” sections to find this information.
- Contact billing or finance department: Call or email the finance or billing departments of a business to confirm the correct address for payments.
For individuals
When you’re sending money to an individual person, simply contact them to ask what address they’d like to use for the transfer.
It’s best practice to get remittance address information in writing—for example by text or email—to ensure that spelling is correct. Regardless of how you’re finding the remittance address for a transfer, make sure to double check the spelling before clicking proceed.
Common mistakes to avoid
There are some common mistakes around remittance addresses that can lead to payment delays, failed transactions, lost funds, or increased fees. Here are a few of the most common errors and how you can make sure to avoid them:
- Using the billing address: A company’s billing address is not the same as a remittance address. A billing address is for card verification, but a remittance address is for payment processing. Using a billing address instead of a remittance address can cause significant payment delays.
- Typos and autofill errors: Typos happen to the best of us. Sometimes, autofill or autocorrect change the spelling of words. Making a mistake in entering a remittance address can slow down the transfer process.
- Failure to verify: Whenever possible, check with the recipient that the information you’re using is correct. Making sure that you’re using a valid and correct address and that it is formatted correctly will contribute to a smooth transfer.
- Ignoring international regulations: If you’re making an international money transfer, you might be using an address in a format that you’re not familiar with. Ensure that you’re inputting the information correctly so that your transaction does not fail or get delayed.
- Mixing up bank details: Confusing the recipient’s bank details with correspondent bank details can send your funds into a transfer limbo that is hard to come back from. Ensure that you have their specific and correct bank information or, alternatively, opt for a secure transfer service to send your funds.
Always review the information you’re providing for a transfer to ensure that your funds are correctly sent as quickly as possible. If you realize you’ve made an error in any of the information, contact your bank or transfer service provider as soon as possible so that it can be corrected.
Remittance addresses versus other transfer information
A remittance address is just one piece of the puzzle when you’re sending a transfer. There are a few other data points that work together with the remittance address to make sure that your money gets to where it’s meant to go. Here are some other key pieces of information you will need to set up a transfer:
- Recipient address: This is your recipient’s personal address or the main business address for companies. This is different from the remittance address, which will be used to process the payment. Instead, this address is used for general communication purposes.
- SWIFT/BIC codes: This is a unique identifier for a specific bank. A SWIFT or BIC code is usually 8-11 characters and a mix of numbers and letters.
- Routing number: This is a unique nine-digit number that indicates a specific bank in the United States (US).
For transfers within the US, the recipient’s full name as it appears on their bank account, recipient’s account number, and recipient’s routing number are the most important pieces of information.
For international transfers, you’ll need the recipient’s name, IBAN or international bank account number, and SWIFT/BIC code.
If you’re preparing to set up a transfer, make sure you have all of the information in writing with correct spelling and formatting so that you can input it as exactly as is needed.
Next steps
Now that you know that remittance addresses are simply routing information that helps ensure that your money reaches the right destination, you’re prepared to more confidently send money off into the world.
Remember, reputable money transfer services handle these details automatically. To successfully send money via domestic or international transfer, always remember to double check that all of the transfer details are correct before sending the money. And if you’re ready to start a secure money transfer, we can help get one started for you at Remitly.
FAQ
What happens if I use the wrong remittance address?
If you have the incorrect information on a transfer it can be rejected, delayed, or sent back to you. Whenever possible, contact your bank or remittance provider as soon as possible if you realize you’ve provided incorrect information.
Is a remittance address the same as the recipient’s home address?
Sometimes. If you’re sending money to an individual, their home address will likely be their remittance address. However, if your transfer is for business purposes, ensure that you provide the specific and unique remittance address.
Do I need to provide a remittance address for every money transfer?
Yes, you’ll typically need a remittance address for every transfer. It is especially important for international transfers made for commercial or business purposes.
How can I verify that I have the correct remittance address?
To ensure that you have the correct remittance address, check any official documents that could have the address listed, like invoices, statements, and contracts. You can also contact the company or transfer recipient directly to confirm. Alternatively, you can use official verification tools. For example, the USPS website allows you to confirm US addresses.
What’s the difference between a remittance address and a SWIFT code?
A remittance address indicates a location, whereas a SWIFT code identifies a bank. These two pieces of information are often used in conjunction to carry out an international transfer.
A remittance address is a physical location where payment processing takes place. This could be the recipient’s address or a specific department of a bank. A SWIFT code or a BIC is a unique identifier for a bank or financial institution that is 8-11 characters long.