What Is TT Transfer (Telegraphic Transfer)?
Transferring money is important in business. Without a payment method that lets you transfer money easily, business transactions can be difficult. Knowing about all of the different options available to you can make generating revenue easy! A method of payment that you don’t hear about often is telegraphic transfer, also known as telex transfer. Telegraphic transfers could be useful to you and your business. Keep reading to find out more!
Here’s What We’ll Cover:
What Is a Telegraphic Transfer?
A telegraphic transfer, also known as a telex transfer, is an electronic method of payment. It is primarily utilized for overseas wire transfers. They are used in reference to the Clearing House Automated Payment System (CHAPS). This signifies that they are used mostly in the U.K. banking system.
As the name term telegraphic implies, the system originally relied on the telegraph to work. International transfers were accomplished by communicating through telegraphs. The telegraph became obsolete, forcing the system to evolve. Telegraphic Transfer (TT) moved forward as technology improved. Using cable messages on secure cable networks, wire payments can be sent between banks. More advanced technology lets financial institutions communicate with one another quickly.
That Sounds Like a Wire Transfer
That’s because it is the same thing! It’s rare to hear someone refer to a wire transfer as a telegraphic transfer. The terms associated with TT are varied. Depending on who you ask, you may hear it referred to as any of the following:
- Electronic funds transfer
- Electronic money transfer
- Wire transfer
- SWIFT transfers
No matter what it’s called, the transfer of funds still happens the same way.
How Long Does a TT Take to Process?
People want their money quickly. That goes for both individuals and companies. As such, any electronic transfer is expected to happen quickly. As such, the telegraphic transfer processing time is expected to be quick, as well.
In general, a telegraphic transfer is completed within two to four business days. The speed is dependent upon the origin of the transfer, as well as the destination. Because TTs are used for international money transfers, currency rates have to be taken into account as well.
How Much Does a TT Cost?
In terms of payment speed, a TT is a fast option. As such, the costs associated with a TT are expected to be higher than other forms of payment. Depending on the complexity of the transaction, the cost can also rise. When payments are being sent through the SWIFT network they are highest. This is due to the requirements and standards for transfers put into place by SWIFT. Foreign currency transfers also increase the cost, as they require additional verification.
Requirements to Send a TT
When sending a TT, certain information is required to complete the transfer. Senders must be able to provide information regarding themselves and the recipient. The recipient needs to be able to do the same. Of the information required, this is the most common:
For the Sender
The sender will need all of the information below.
- The recipient's full name
- The recipient's financial institution
- The recipient's account number with the financial institution
- The recipient's address
- The recipient's contact information
- The amount of money they’d like to transfer
For the Recipient
The recipient will need the information below.
- The sender’s full name
- The sender’s contact information
Because the initiation of a TT is on the sender’s end, more information is required from them. If the TT is being sent between businesses, similar information is required about the business entities.
How Are TTs Sent?
When you’re trying to send a TT, you’ll need a few things before being able to. First you’ll want to have the correct documents on hand. This includes your details, as well as the recipient’s details. When you’ve got your details gathered, sending a TT is easy.
- Initiate a TT through a bank branch. Some will let you complete the process online. Either way, assistance will be available through your financial institution.
- Provide the information required for the transfer to the bank teller or the online program. Information you’ll want to have is listed above.
- Verify the information provided is correct and confirm the transfer.
- Confirm that funds were received by the recipient within 2 to 4 business days. It’s as easy as that!
While they aren’t always referred to as telegraphic transfers, it's likely that you’ve made a TT at one point. They are more commonly referred to as EFTs or wire transfers. They require quite a bit of information, and a transaction fee, but they are a secure form of payment. If you need to send a payment to a person or a business, consider using a TT! If you want more information regarding payment methods or payment systems, we’ve got it! Check out our resource hub for more.