A telegraphic transfer (TT) is an electronic bank-to-bank payment used to send money internationally. Although the name dates back to the days of the telegraph, today's telegraphic transfers are processed digitally through the SWIFT network, making them one of the most widely used methods for moving money across borders.
You may also hear a telegraphic transfer referred to as a wire transfer, international bank transfer, or simply TT. While the terminology varies by country, these terms generally describe the same payment process: an electronic instruction sent between banks to transfer funds from one account to another. Once initiated, the sender's bank sends the payment instruction via the SWIFT network to the recipient's bank, with funds typically arriving within 1 to 5 business days, depending on the countries, currencies, and banks involved.
Understanding how a telegraphic transfer works, what it costs, and how it compares with newer alternatives can help you choose the most efficient way to send money internationally.
What is a telegraphic transfer?
A telegraphic transfer (TT) is an electronic method of transferring money between bank accounts in different countries. Although the name originated in the nineteenth century, when payment instructions were sent by telegraph, modern telegraphic transfers are processed entirely online through secure banking networks. The term is still commonly used in Australia, New Zealand, the United Kingdom, and parts of Asia, while wire transfer is more common in North America.
A telegraphic transfer works by sending a secure payment instruction between financial institutions through the SWIFT messaging network. Rather than moving money directly, SWIFT provides the infrastructure that enables banks to communicate payment instructions securely. Depending on the relationship between the sending and receiving banks, the payment may pass through one or more correspondent banks before reaching the recipient's account.
For example, if someone in Australia sends money to Germany, their bank sends a SWIFT message containing the payment instructions. If the two banks do not have a direct relationship, correspondent banks facilitate the transfer before the funds reach the recipient's bank in Germany.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) connects more than 11,000 financial institutions across over 200 countries and territories. It is important to understand that SWIFT does not transfer money itself. Instead, it securely transmits the instructions that tell banks how to settle the payment. This is one reason international bank transfers can involve multiple processing fees.
If you regularly receive international payments, opening a multi-currency account can provide an alternative to receiving funds through traditional SWIFT transfers. With Grey, you can receive payments using local banking rails such as ACH in the United States, Faster Payments in the United Kingdom, and SEPA in Europe, helping reduce intermediary fees and delays.
How does a telegraphic transfer work?
A telegraphic transfer follows a series of steps before the money reaches the recipient. Although the process happens electronically, several banks and verification checks may be involved, which is why international transfers can take anywhere from one to five business days.
- The sender initiates the transfer: The sender starts the transfer through their bank's branch, website, or mobile app. They provide the recipient's bank details, including:
- Full name
- Bank name and address
- Account number or IBAN
- SWIFT code or BIC (Bank Identifier Code)
- Transfer amount and currency
- Fee option (SHA, OUR, or BEN)
If you're unsure which bank code you need, here's the difference between a SWIFT code and a routing number.
- The sending bank verifies the payment: Before sending the transfer, the bank verifies the payment request and performs regulatory checks, including anti-money laundering (AML) and know-your-customer (KYC) screening. Once approved, it prepares the SWIFT payment message.
- The payment instruction is sent through SWIFT: The sending bank transmits a secure SWIFT message, usually an MT103 for customer payments. This message contains the payment instructions and is sent directly to the recipient's bank or through one or more correspondent banks if no direct banking relationship exists.
- Correspondent banks process the transfer: When the sending and receiving banks do not hold accounts with each other, correspondent banks help route the payment. These intermediary banks facilitate settlement between financial institutions and may deduct handling fees before passing the payment to the next bank in the chain.
- The recipient's bank receives the payment: Once the payment instruction arrives, the recipient's bank credits the funds to the recipient's account. If the transfer requires currency conversion, the receiving bank typically applies its own exchange rate, which may include a margin above the mid-market rate.
- The payment is settled: Although SWIFT transmits the payment instructions, the funds themselves are settled through accounts that banks hold with one another. Once settlement is complete, the recipient can access the transferred funds.
Every stage of the process can affect how long the transfer takes. Processing times depend on several factors, including the banks involved, the currencies being exchanged, compliance checks, daily cut-off times, weekends, public holidays, and the number of correspondent banks handling the payment.
Also read: ACH, SWIFT, Wire and FedNow: What they are and when to use each
What does telegraphic transfer selling mean?
When you send money internationally through your bank, you'll usually see an exchange rate applied to the transfer. If your bank refers to this as the TT selling rate, it means the exchange rate the bank uses when selling foreign currency to complete your telegraphic transfer.
In other words, the TT selling rate determines how much foreign currency your recipient receives. Even if your bank charges a low transfer fee, an unfavourable exchange rate can significantly increase the total cost of sending money abroad.
Most banks use two different exchange rates for international transfers:
- TT buying rate: The exchange rate the bank uses when buying foreign currency from you. This usually applies when you receive money from abroad or convert foreign currency into your local currency.
- TT selling rate: The exchange rate the bank uses when selling foreign currency to you for an outgoing international transfer. This is the rate applied when you're sending money overseas and is typically less favourable than the mid-market exchange rate.
The difference between the TT buying rate and the TT selling rate is known as the exchange rate spread. This spread is one of the main ways banks earn money on foreign currency transactions, alongside any transfer fees they charge.
For widely traded currencies such as USD, EUR, and GBP, the spread is often between 1% and 3%, although it can vary depending on the bank, currency pair, and market conditions.
Practical example
Suppose the mid-market exchange rate is:
1 GBP = 1.35 USD
Your bank offers the following rates:
- TT selling rate: 1 GBP = 1.32 USD
- TT buying rate: 1 GBP = 1.38 USD
If you send £10,000 to someone in the United States, your bank applies its TT selling rate of 1.32 USD.
The recipient receives:
$13,200
If the transfer had used the mid-market exchange rate instead, they would have received:
$13,500
That's a difference of $300, which becomes part of the bank's exchange rate margin.
And that's before any additional transfer costs, such as:
- Outgoing bank transfer fees
- Correspondent bank charges
- Receiving bank fees
This is why it's important to look beyond the advertised transfer fee. A transfer that appears inexpensive may cost considerably more once exchange rate margins and intermediary fees are taken into account.
If you're comparing providers, always check the total cost of the transfer, including the exchange rate, transfer fees, and any additional charges that may be deducted before the money reaches the recipient.
Tip: Banks often advertise low transfer fees, but the exchange rate can have a much bigger impact on how much your recipient receives. Always compare both the transfer fee and the exchange rate before sending money.
Telegraphic transfer vs wire transfer: what's the difference?
In most cases, telegraphic transfer and wire transfer refer to the same type of payment: an electronic bank-to-bank transfer. The main difference lies in the terminology used in different parts of the world.
The term telegraphic transfer (TT) is more common in countries such as Australia, New Zealand, the United Kingdom, and parts of Asia. In the United States and Canada, the same type of payment is typically referred to as a wire transfer.
For international payments, both terms generally describe transfers sent through the SWIFT network. However, in the United States, the term wire transfer can also refer to domestic transfers processed through systems such as Fedwire or CHIPS.
| Feature |
Telegraphic transfer |
Wire transfer |
| Common terminology |
Australia, New Zealand, parts of Asia and UK |
United States, Canada, most of Europe |
| Underlying network |
SWIFT |
SWIFT (for international);
Fedwire or CHIPS for domestic US |
| Speed |
1-5 business days (international) |
Same day to 5 business days depending on type |
| Cost |
Outgoing bank fee + correspondent deductions + exchange margin |
Same fee structure |
| Reversibility |
Difficult once processed |
Difficult once processed |
| Best used for |
International bank-to-bank payment |
International or high-value domestic payments |
Also read: Wire transfer vs ACH: Cheapest way to receive USD
How long does a telegraphic transfer take?
A telegraphic transfer typically takes one to five business days, although the exact timeframe depends on the countries involved, the currencies being exchanged, the banks processing the payment, and whether intermediary banks are required.
Here's what you can generally expect:
| Transfer type |
Typical delivery time |
| Same-day transfer |
Available in limited cases, usually between major banks and currencies when the transfer is submitted before the bank's cut-off time. |
| Major currency corridors |
1 to 2 business days |
| Standard international transfers |
2 to 3 business days |
| Transfers involving multiple correspondent banks or less common currencies |
3 to 5 business days |
Several factors can affect how quickly a telegraphic transfer arrives:
- Bank cut-off times: Transfers submitted after the daily cut-off are usually processed on the next business day.
- Correspondent banks: Payments routed through intermediary banks take longer because each institution must process the transaction.
- Currency conversion: Exchanging one currency for another may add processing time.
- Compliance checks: Banks screen international transfers for anti-money laundering (AML) and fraud prevention purposes, which can delay certain payments.
- Weekends and public holidays: Banks generally only process international payments on business days, so weekends and local holidays can extend delivery times.
For example, a transfer sent late on a Friday may not begin processing until the following Monday, adding several days to the overall delivery time.
If speed is important, choosing a provider that uses local payment rails instead of correspondent banking can help reduce delays. Grey supports local payment methods in several markets, allowing many international transfers to arrive faster while providing transparent fees before you confirm the payment.
What are the fees for a telegraphic transfer?
The cost of a telegraphic transfer is often higher than it first appears. While many banks advertise a single transfer fee, the total cost can include several charges applied at different stages of the payment process.
Depending on the banks involved and the currencies being exchanged, you may pay:
- Outgoing transfer fee: Charged by the sending bank to initiate the transfer. This typically ranges from $15 to $45 in the United States, £15 to £30 in the United Kingdom, and AUD $20 to AUD $35 in Australia.
- Correspondent bank fees: If the transfer passes through intermediary banks, each one may deduct a handling fee before forwarding the payment. These charges often range from $10 to $25 per bank and aren't always disclosed in advance.
- Receiving bank fee: Some banks charge the recipient an incoming international transfer fee, typically between $10 and $25, which is deducted before the funds are credited to their account.
- Exchange rate margin: If the transfer involves currency conversion, the bank usually applies its own exchange rate rather than the mid-market rate. This margin is often 1% to 3%, although it can vary depending on the provider and currency pair.
Who pays the transfer fees?
When sending a telegraphic transfer, you'll usually be asked to choose one of three fee options:
| Fee option |
What it means |
| OUR |
The sender pays all transfer fees, including any charged by intermediary and recipient banks. |
| SHA |
The sender pays the outgoing transfer fee, while the recipient pays any intermediary and receiving bank charges. This is the most common option for international transfers. |
| BEN |
The recipient pays all fees, which are deducted from the transferred amount. As a result, they receive less than the amount originally sent. |
Choosing the right option depends on who has agreed to cover the transfer costs. For example, businesses paying suppliers often choose OUR to ensure the recipient receives the full amount.
Total cost example on a $1,000 transfer:
| Charge |
Cost |
| Outgoing bank fee |
$35 |
| Correspondent bank 1 |
$15 |
| Correspondent bank 2 |
$20 |
| Receiving bank fee |
$15 |
| Exchange rate margin (approximately 2%) |
Around $20 |
Estimated amount received: approximately $950
Although the sender only sees the initial transfer fee, intermediary charges and exchange rate margins can significantly reduce the final amount the recipient receives.
How Grey compares
Grey offers USD, EUR, and GBP accounts that allow you to receive international payments through local banking networks, including ACH in the United States, Faster Payments in the United Kingdom, and SEPA in Europe. By routing payments through local banking networks where available, it helps reduce intermediary fees and ensures you'll see the full cost before confirming your transfer. You can try to send money with Grey and see the full cost before you commit.
Frequently asked questions
Is a telegraphic transfer safe?
Yes. Telegraphic transfers are processed through regulated financial institutions using the SWIFT network, which employs secure messaging, encryption, and authentication protocols. Banks also perform anti-money laundering (AML) and fraud checks before processing international payments. To avoid delays or failed transfers, always double-check the recipient's account details before sending money.
What information do I need to make a telegraphic transfer?
You need the recipient's full legal name, the recipient's bank account number or IBAN, the recipient's bank name and address, and the bank's SWIFT code or BIC. For some countries, you may also need a routing number, sort code, or BSB. The amount and currency of the transfer are also required. Confirm all details with the recipient before initiating the transfer, as errors are difficult and slow to reverse.
Can I cancel a telegraphic transfer?
You may be able to cancel a telegraphic transfer if the request is made before the payment has been processed. Once the SWIFT message has been sent and the funds are in transit, cancellation becomes more difficult and isn't guaranteed. In some cases, banks may charge a fee to recall the payment. The best approach is to verify all recipient details carefully before initiating.
What is the maximum amount I can send by telegraphic transfer?
There is no universal maximum amount for a telegraphic transfer. Each bank sets its own transfer limits, and larger payments may require additional identity or source-of-funds checks to comply with anti-money laundering regulations. If you're planning to send a high-value transfer, check your bank's limits before initiating the payment.
What is the difference between a TT and an ACH transfer?
ACH (Automated Clearing House) is a US domestic payment network that processes transfers between US bank accounts in batches. It is typically free or very low-cost and settles in 1 to 3 business days. Telegraphic transfers are international bank-to-bank payments routed via SWIFT, with higher fees and longer or comparable processing times. ACH is limited to US domestic payments; telegraphic transfers work across borders.
How do I track a telegraphic transfer?
Once your transfer has been sent, your bank will usually provide a SWIFT reference number or UETR (Unique End-to-End Transaction Reference). You can use this reference to check the payment's status through your bank. If the transfer takes longer than expected, contact your bank with the reference number to request a trace.
Send money internationally with Grey with transparent fees and no correspondent bank deductions.
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