Payment advice

What is a payment advice?

A payment advice is a message sent by a payer to inform a recipient that a payment has been made or will be made shortly. The payer may be a company or an individual, while the recipient is typically a supplier who has provided goods or services. Other common terms include payment notification or remittance advice.

Payment advices are commonly used for large domestic payments or international transactions. They are also useful when multiple invoices are settled in one payment.

The main purpose of a payment advice is to provide clarity and transparency: it tells the recipient which amount is being paid for which invoice. It also supports accurate bookkeeping—especially helpful when dealing with bulk payments or multiple open invoices. In addition, a payment advice helps prevent misunderstandings, follow-up inquiries, or unnecessary payment reminders.

Key components of a payment advice:

• Name and address of the payer

• Payment date

• Amount paid

• Payment method

• Reference or invoice number(s)

• Breakdown of line items (for collective payments)

• Bank account details of the recipient