What is a remittance address, and how is it different from a billing address?

[riya]

I often see the term “remittance address” on invoices and payment instructions, but I’m not fully clear on what it means.


Is a remittance address just where the payment should be sent, or does it serve a different purpose from the billing or mailing address? For example, some vendors list one address for correspondence and another as the remittance address — why is that?


I’d appreciate a simple explanation and maybe an example of how businesses use remittance addresses for checks, ACH payments, or wire transfers.

 

[Rick_Grimes]

A remittance address is where you send payments, like checks or money transfers. A billing address is linked to your invoice or payment method (like a credit card) and used for billing details or verification.

In short: billing = where the bill goes, remittance = where the money goes.

 

[robertwilliam]

The remittance address is a particular address to which a company or person makes a payment, in most cases, it is a P.O. Box or a separate accounting department address that makes the payment handling process easier and quicker.

 

[riya]

The remittance address is a specific address to which a company or individual sends a payment; in most situations, it is a P.O. Box or a separate accounting department address, which makes the payment handling procedure easier and faster.

 

[jainnorton]

A remittance address, which is frequently marked "Remit To," is the precise location to which payments (checks, invoices) should be sent.

It is not the same as a billing address, which is the address linked to the payer's bank account or credit card for verification. The recipient receives the funds for processing at the remittance address.

 

[nikhilrajoria]

Companies also divide them in order to simplify payment processing.

1. Remittance Address: Where payment is directed to (e.g. PO box to be accounted).
2. Billing Address: Address related to your mode of payment.

 

[peterkavinsky]

A remittance address is where payments are sent, while a billing address is the address tied to your account or credit card for billing and verification.