What Is a Telegraphic Transfer (TT)?

What Is a Telegraphic Transfer (TT)?

Let me explain what a telegraphic transfer, or TT, really is. It's an electronic way to move funds, mainly for wire transactions across borders. You'll see these most often with CHAPS transfers in the UK banking system. People also call them telex transfers.

Key Takeaways

Here's what you need to know right away. A TT is that electronic fund transfer method focused on overseas wires. It's tied closely to CHAPS in the UK. Expect it to wrap up in two to four business days, based on where the money's coming from and going to, plus any currency swaps involved. And remember, TTs go by names like telex transfers, wire transfers, or electronic funds transfers.

Understanding a Telegraphic Transfer (TT)

Originally, these transfers used actual telegraphs to communicate between banks. You'd go to your bank, give them the amount and recipient details, and an operator would send it via Morse code to the other bank. The telegraph is long gone now, but the idea stuck around. It evolved with tech, using secure cable networks for fund transfers. Sometimes people just say 'wire transfer' or 'electronic funds transfer' (EFT) instead.

These TTs aren't cheap – they come with fees, often multiple ones, because of how fast they are. Completion takes two to four business days, depending on start and end points and currency needs. For US domestic stuff, funds go through the Federal Reserve System; internationally, it's the SWIFT network.

SWIFT, by the way, started in 1973 and standardized cross-border transfers, cutting errors and speeding things up. While TT can mean domestic or international, it's mostly linked to SWIFT for that security and regulation layer. Costs vary – affected by amount, institution, and more. Fees aren't the same everywhere; they can differ a lot between banks.

Information Required for Telegraphic Transfers

To get a TT done, you need specific info on sender and destination. If it's between your own accounts or someone else's, the key is account numbers and financial institution details. You'll also need personal ID for security and to verify who's sending. For businesses, it's similar but about the company details instead.

Why Was It Called Telegraphic Transfer (TT)?

It got the name because early transfers happened over telegraph wires between institutions. Telegraphs are obsolete now, so it shifted to cable networks or cloud apps.

What Are the Key Characteristics of a Telegraphic Transfer?

TTs offer security plus standards and rules for how they work. They finish in two to four business days, varying by locations and currency exchanges. And yes, they're pricey for that quick service.

How Are Telegraphic Transfers Processed?

Most commonly, TTs connect with CHAPS in the UK. US domestic ones use the Federal Reserve, while international go through SWIFT.

What Information Is Needed for a Telegraphic Transfer (TT)?

You mainly need account and routing numbers for the involved parties and banks. Then the transfer amount and the provider – usually banks, not third parties like Western Union, though strictly TTs are bank-to-bank. Other details might be required for security and sender confirmation.

The Bottom Line

In the end, a TT is your electronic option for overseas wire transfers. It usually takes two to four business days, depending on origins and destinations. Known as telex, wire, or electronic funds transfers, they're expensive with potential multiple fees for the speed.