What Is a Telegraphic Transfer (TT)?
A telegraphic transfer could be a great choice. Find out everything you need to know about making a telegraphic transfer from Australia, including our guide to the TT payment procedure, right here. Telegraphic transfers explained  Telegraphic transfers  which are also referred to as Telex transfers, TT payments, or simply TT  is a way of transferring funds thats mostly used when you need to make an overseas transaction. The term telegraphic transfer has its origins in the way that banks used to make international money transfers. Essentially, transfers would be made with the Telex network of teleprinters  electronic machines that communicated via text-based messages that were used to arrange transfers. There are now faster ways to complete an international transfer, but the term telegraphic transfer has remained in use, particularly in Australia, New Zealand, and the UK. So, when you hear the term telegraphic transfers, all you need to know is that it refers to international money transfers made from one account to another. Its synonymous with terms like bank transfer, wire transfer, or SWIFT transfer, which are now more commonly used to describe the same process. How telegraphic transfer works  TT payments pass your money between several different banks before it arrives at its destination. Each of these banks will have different fees and processing times, which is why telegraphic transfers can be a little more costly and time-intensive than other money transfer services. The network of banks that your money passes through is referred to as the SWIFT network. The banks are called correspondent banks because your money only passes between banks which have commercial relationships. Generally speaking, the telegraphic transfer processing time is between one and two days. When you make a telegraphic transfer from Australia, you will incur several fees. When you begin the transfer, youll be given the option of paying all the fees yourself or having the fees deducted from the recipients funds. Heres a rundown of the fees that you may be facing:  Senders bank fees  These are fees determined by the bank youre sending the money from. In Australia, theyre likely to be around $6 to $30. Recipients bank fees  These are determined by the bank receiving the money. Corresponding bank fees  These fees come from the corresponding banks. Sometimes, it can be unclear how much the corresponding banks are charging, so you may need to do a bit of additional research to find out. Exchange rate margin  Finally, its important to remember that banks add a margin to the exchange rate. This is to cover their own fees. While the margin will vary depending on your method of payment, banks generally charge more than other, more specialised money transfer services. How to send a telegraphic transfer  If you want to send a TT payment, youll first need to ensure that you have all the correct documents. Firstly, youll need your own details (name and bank account details). Then, youll need the recipients details, including the name of their bank, bank account number, name, address, and contact information. You may also need to include their IBAN number or SWIFT code. Once youve got the telegraphic transfer details together, its time to send the money. The TT payment procedure may differ between different banks, but generally it will follow these steps:  Find out where to make the transfer. You may need to go into a branch, but if your bank offers online telegraphic transfers, you wont need to leave the house. You can find out this information by checking their website or calling customer service. If you need to do the transfer in person, head into a branch with the necessary documentation and speak to a teller. They should be able to kickstart the TT payment procedure. If you can make an online telegraphic transfer, all you need to do is log into your online banking account and follow the instructions. Look for the section marked International Payment, Wire Transfer, Send Money Overseas, or so on. We can help  GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.