Remittance: What it is and the process for sending one from the U.S.
What is a remittance?
A remittance is a money transfer made by a person from the country where they live and work to another person in a different country, usually a family member, who receives it via bank deposit, cash pickup, or digital wallet.
The term comes from the verb "to remit," which means to send. That is why the person sending a remittance is known as the sender.
In the context of Latino migration in the United States, remittances are the funds that immigrant workers send to their families in Latin American countries.
Types of remittances
There are several types of remittances, depending on the relationship between the sender and the beneficiary, and the method used to send them:
| Type | Description |
|---|---|
| Family remittance | A personal transfer between family members, such as support for household expenses. |
| Digital remittance | Sent and received through digital platforms, apps, or chats, without needing to visit a physical branch. |
| Cash remittance | The sender pays in cash at a store or agent location, and the beneficiary picks up the money in person. |
| Commercial remittance | A transfer between companies or for business purposes (less common in the migration context). |
How sending a remittance works
The process is simpler than it seems:
- The sender (the person sending the money) chooses a service provider and specifies the amount and the beneficiary's details.
- The provider applies the exchange rate to convert the dollars into the currency of the destination country.
- The provider charges a fee for the service, which can be a flat rate or a percentage of the amount sent.
- The recipient receives the money based on the chosen method: a deposit into their account (for example, via an international bank transfer), cash pickup, or a digital wallet.
How to send a remittance with Félix
With Félix, the entire remittance process happens via WhatsApp: no extra apps needed, and it takes just minutes. Félix has fees starting at $2.99 USD for bank account transfers depending on the destination country, and you can see the fee, exchange rate, and the amount your recipient will get before you confirm. Check the details at how much Félix charges in fees.
Check out our step-by-step guide on how to send money with Félix to send a remittance in less than 5 minutes.
If you want to learn even more about the different remittance methods, current regulations, or service provider comparisons, check out our complete guide: Money transfers and remittances from the U.S.: Everything you need to know in 2026.
