- A telegraphic transfer is a bank-to-bank international money transfer, often sent via the SWIFT network.
- Telegraphic transfers and wire transfers are effectively the same, with the difference mainly being terminology.
- Transfers can take one to five business days and may pass through intermediary banks.
- Fees, exchange rate margins, and receiving bank charges can make telegraphic transfers costly.
A telegraphic transfer (TT) is a type of international money transfer made through a bank. While the term dates back to the days of telegraph messages, today's telegraphic transfers are sent electronically, usually via the SWIFT network.
When you make a telegraphic transfer, money is sent from your bank account to an overseas bank account. Depending on the destination, the funds may pass through one or more correspondent (intermediary) banks before reaching the final account. These correspondent banks must have existing commercial relationships with each other to process the transfer.
It's worth noting that each intermediary bank involved in the process may deduct a fee for handling the payment. As a result, telegraphic transfers can end up being slower and more expensive than some newer international money transfer options.
Are telegraphic transfers still used?
In the past, international money transfers (IMTs) were often expensive and slow, leaving banks as the main option. Today, there are cheaper and more transparent alternatives available.
Specialist international money transfer providers such as Wise (formerly TransferWise) and OFX often offer lower fees and more competitive exchange rates than traditional banks.
- Quick tip: Because exchange rate margins can significantly impact the total cost of a transfer, it's important to compare both fees and exchange rates before sending money overseas.
How can I make a telegraphic transfer?
To make a telegraphic transfer, you'll generally need to:
- Log in to your bank's internet banking, mobile app, or visit a branch and request an international or telegraphic transfer.
- Enter the details of the person you're sending money to (or your own details if transferring to your own overseas account).
- Confirm the transfer amount, currency, and applicable fees.
- Submit the transfer and keep the confirmation for your records.
How long does a telegraphic transfer take?
International telegraphic transfers typically take between one and five business days, depending on the destination country, the banks involved, and whether intermediary banks are required.
Delays can also occur due to time zones, public holidays, or compliance checks.
Read Also: How to plan your finances for an international exchange
Telegraphic transfer costs and fees
One of the main drawbacks of telegraphic transfers is the cost. Given that money may pass through multiple banks, several types of fees can apply, including:
- Sending bank fees - In Australia, this usually ranges from $6 to $30, depending on the bank and transfer method.
- Correspondent bank fees - These are charged by intermediary banks processing the transfer. The exact amount isn't always known upfront.
- Exchange rate margin - Banks typically add a margin to the exchange rate, which can significantly increase the overall cost.
- Receiving bank fees - The overseas bank may charge a processing fee, which is often deducted from the amount received.
What details do I need to provide for a telegraphic transfer?
To send a telegraphic transfer from Australia, you usually need to provide the following information:
Transfer details
- Amount
- Currency
- Reason for transfer
Your details
- Full name
- Account number
- Residential address
Recipient (overseas) account details
- Recipient's full account name
- International bank account number (or IBAN, where applicable)
- Bank's name and branch address
- SWIFT/BIC code
Banks may ask for additional information to meet anti-money laundering and security requirements. If you're receiving money from overseas, the process is largely the same, just in reverse.
Telegraphic transfer pros and cons
Pros
- Convenience - Transferring money can usually be done through your bank's app or online banking.
- Security - Banks use regulated systems and secure networks to process international transfers
Cons
- Speed - As your money passes through a few hands, getting from point A to point B might take longer than with other types of transfers.
- Fees - Associated costs make this method more expensive than other types of IMTs.
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