What is a common use of the term 'remittance'?

The term 'remittance' is commonly used to refer to the process of sending money, particularly across borders or between individuals, often in the context of international transfers. This usage is prevalent in financial settings where individuals working abroad send money back to their families or friends in their home country.

This definition aligns with the broader context of financial transactions, highlighting the role of financial institutions in facilitating these transfers. Remittances are essential for many economies, especially those that rely on funds sent from citizens working overseas, playing a crucial role in supporting households and communities.

In contrast, other options specify different scenarios that do not encapsulate the essence of remittance. Paying bills in person, receiving a refund, or processing cash payments do not convey the specific action of sending money to another party, particularly in the financial or international context that the term 'remittance' is typically associated with.