What Is a Remittance Address? A Definitive Guide
There are a number of things that you have to take into account when you’re setting foot into the business world.
Whether you’re a small business owner running your own company. Or you’re just filling out a direct deposit slip at your new job - you need an address where you can receive payments.
This is where a remittance address comes into play. But what exactly is a remittance address?
We’ll take a closer look at the definition in our definitive guide.
Here’s What We’ll Cover:
What Is a Remittance Address?
A remittance address, or remit address as it’s otherwise known, is a destination for cheques and invoices to be sent. It functions in a similar way as a regular address, but it is specifically for monetary transfers.
A remittance address is a handy way for people or businesses to receive payments. There is no limit on what address you can use. Some people use their home address, whilst others prefer to use a PO Box or another address.
You can also use a remittance bank account address, which means that the remittance address is an actual bank. Some businesses will route their payments to a bank instead of an office to be processed.
Remit addresses are used by businesses all over the world, especially when they are processing and sending money overseas.
When you encounter a remittance address, you may see terminology such as:
- Remit To: This is informing a customer where to send a payment.
- Remit Address: This is associated with companies asking where to send payments.
- Billing Address: This is the address affiliated with a payment’s destination.
What Does a Remittance Address Look Like?
A remittance address will look just like any other regular address. It should be clearly labelled with the prefix “Remit to:” followed by the address where the payment should be sent.
Sometimes the address will be an international one. But even if this is the case, it should still look like any other normal mailing address in the recipient country.
One thing to not get confused by is mixing up the remittance address with the corporate address of the business. You should not send payments to the corporate address unless you are directed to.
Always search for the “remit to:” address that will be listed on your invoice.
To give an example, let’s take a look at Amazon’s structure:
Amazon Corporate Headquarters,
410, Terry Ave N,
P.O. Box 960013,
You can clearly see that these are two separate addresses. So any invoices or payments should be sent to their remittance address in Florida. This is instead of their corporate address in Washington.
Why Use a Remittance Address?
If you won a business, then creating a remittance address is helpful if you’re growing rapidly.
It’s a great tool for businesses to stay organised and process their payments. But perhaps most importantly, it helps to ensure that important invoices aren’t lost among the general day-to-day mail that your business receives.
Having payments and invoices go to a remittance address also helps with the following:
- Processing payments faster
- Making payments faster when your business receives an invoice from a client
- Making sure that no payments or invoices get lost when being delivered between different departments
Should I Consider Getting a Remittance Address?
If you are a business owner whose company receives a lot of invoices and payments, then you may want to consider creating a separate remit address. This can help you keep everything organised and ensure you don’t miss important payments.
If you decide to receive payments and invoices through a remittance address, you’ll need to follow these steps:
- Change your existing billing forms, websites, business cards and everything else to reflect the address change.
- Maintain that receiving address and check it often.
- In the period of time where you have just changed your address, still regularly check your old address as clients may make a mistake.
Remittance addresses are a useful organisational tool for businesses of any size. It only takes a short amount of time to create a new address and can help save a lot of time and stress in the future.
Are you looking for more business advice on everything from starting a new business to new business practices?
Then check out the FreshBooks Resource Hub.