Remittance transaction type (coming soon)

Summary

A remittance payment is a type of cross-border money transfer, typically sent by a migrant worker to their family in their home country for personal, non-commercial purposes. In addition, remittance in a business context means paying overseas vendors, contractors or businesses.

Just like bank payment, it includes the concepts of debtor, creditor and agents.

From the overall transaction model it inherits: base value and currency; value and currency; custom fields etc.

Guide to usage

Parties

There are four party types:

• Creditor (required)
• Debtor (required)
• Ultimate creditor (optional)
• Ultimate debtor (optional)

Rules:

1. Either the debtor or the creditor must be a customer and the other one must be a counterparty, both require external identifiers
2. The rest are counterparties
3. No more than one counterparty can have an external identifier. It’s permissible that none of them do.
4. Any customer type is permissible: personal, business or undefined.
5. While creditor and debtor will usually be in different countries, this is not enforced on ingestion. It is possible to send a payment within one country using a remittance provider (such as Wise).

The Ultimate Debtor is the party who truly owes the money or on whose behalf a payment is initiated, while the Ultimate Creditor is the party who is the true final recipient or beneficiary. These ultimate roles are only specified in remittance transactions when they are different from the immediate Debtor and Creditor (the account holders). Identifying these parties enhances transparency, especially for compliance and regulatory purposes.

Direction

A direction is calculated and stored when the transaction is submitted. It can be used in scenario logic.

• If the debtor is the customer, the direction is outbound
  • The funds are leaving the customer
• If the creditor is the customer, the direction is inbound
  • The funds are being received by the customer

Agents

Agents represent other financial institutions involved in the transaction, e.g. the counterparty bank. 0+ agents can also be provided in the transaction

Fields

To view the fields and full details, visit the API docs for Create and process a transaction and explore transaction object > monetary > remittance (coming soon).