Telegraphic Transfer (TT) Explained: Costs and Process in 2025

Julia Kagan is a financial and consumer journalist, formerly a senior editor for personal finance at Investopedia.

What Is a Telegraphic Transfer (TT)?

A telegraphic transfer, commonly abbreviated as TT, is a secure electronic method for sending money, predominantly used for international wire transfers. In the UK, these are often processed through the Clearing House Automated Payment System (CHAPS). Also known as telex transfers, TTs enable fast and reliable cross-border payments.

Key Highlights

• TTs are electronic fund transfers mostly used for sending money overseas.
• In the UK, TTs typically utilize the CHAPS system.
• Transfers usually complete within two to four business days, depending on the countries and currencies involved.
• Also referred to as wire transfers or electronic funds transfers (EFT).

The Evolution and Mechanics of Telegraphic Transfers

Historically, telegraphic transfers were conducted over telegraph wires using Morse code to communicate payment instructions between banks. Although telegraph technology is now obsolete, the concept has evolved to use secure digital networks and cloud-based platforms to facilitate transfers.

TTs are generally faster but come with higher fees due to their expedited nature. Domestic US transfers route through the Federal Reserve System, whereas international transfers are processed via the SWIFT network, which standardizes and secures cross-border transactions.

Interesting Fact

SWIFT, launched in 1973, revolutionized international banking by creating a universal communication standard, reducing errors and speeding up money transfers worldwide.

Costs for TTs vary widely based on the sending and receiving banks, transfer amount, and currency exchange requirements.

Important Considerations

Fees are not uniform across banks and can differ significantly, so it’s essential to compare charges before initiating a transfer.

Information Needed to Complete a Telegraphic Transfer

To process a TT, accurate sender and recipient account details are required, including account numbers and bank identifiers. Personal or business identification details are also necessary to verify the sender and ensure transaction security.

Why Is It Called a Telegraphic Transfer?

The term originates from the original method of sending payment instructions via telegraph wires. Today, while the technology has advanced, the name TT remains in use to describe these electronic transfers.

Key Features of Telegraphic Transfers

TTs offer a secure and regulated way to move funds internationally, typically completing within two to four business days. Their speed and reliability come at a premium cost.

Processing of Telegraphic Transfers

In the UK, TTs are commonly linked with CHAPS transfers. In the US, domestic transfers use the Federal Reserve system, while international payments rely on SWIFT networks for secure and standardized processing.

Essential Details for Telegraphic Transfers

Critical information includes the sender’s and recipient’s account and routing numbers, transfer amount, and the financial institutions involved. Some transfers may involve non-bank providers, but traditional TTs occur directly between banks. Additional identification information is required for security verification.

Summary

Telegraphic transfers remain a trusted electronic method for international money transfers in 2024. Typically completed within two to four business days, TTs—also known as telex or wire transfers—offer speed and security but often involve higher fees. Understanding the process and requirements helps ensure smooth and cost-effective transactions.

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