What is remittance processing?

Remittance processing is the procedure by which businesses or financial institutions receive and manage payments from customers, typically for invoices or bills. This process involves collecting payment data, matching payments to outstanding invoices, and depositing funds. Remittance processing can be handled manually or through automated systems, and is crucial for maintaining accurate financial records and ensuring timely cash flow. It is commonly used in industries such as utilities, healthcare, and financial services.