Telegraphic transfer (TT) is an electronic method used primarily for overseas wire transactions for the transfer of funds. In reference to Clearing House Automated Payment System (CHAPS) transfers in the UK, these transfers are most frequently used system of banking.

Also known as telex transfers, abbreviated TT, telegraphic transfers can refer to other kinds of transfers as well. The payment abbreviation, as is often the case, is used in professional circumstances to speed discussions. Because of the quick nature of the transaction, telegraphic transfers are generally fairly costly. The telegraphic transfer is generally completed within two to four business days, depending on the origin and destination of the transfer, as well as any requirements for currency exchange.

How TT works?

Funds sent between institutions are transferred through the Federal Reserve System for U.S. domestic transfers and the Society for Worldwide Interbank Financial Telecommunication (SWIFT) for international transfers. While the term can refer to both domestic and international U.S. transfers, transfers through SWIFT are most commonly associated with it. The use of these systems provides the transaction with a level of security as well as a set of standards and regulations to control how the transfers occur.

These variables can also influence the price associated with a telegraphic transfer. Additional cost-influencing factors may include, but are not limited to, the amount being transferred and the transaction completion institution chosen.

Information required for TT

To complete the transfer, certain information relating to the sender and destination is required. Whether a person transfers funds between two accounts held on his or her behalf or between two accounts held by two separate persons, the most relevant information required for the transfer is the account number and the information relating to the corresponding financial institutions.

For security purposes and to confirm the sender’s identity, personally identifiable information is also required. Similar requirements are required among business entities, but instead of the individual, the identifiable information relates to the company.