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Business Account

Telegraphic Transfers (TT): How to Send Money Across Borders with Ease

26 September 2023
Grof Writer
6 Minutes Read
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Sending money is essential to all businesses, whether small or large. Moving money securely and conveniently makes more use of telegraphic transfers today. It is also called a TT transfer is an international money transfer straight from one account to another, completed through your bank.  

 

Therefore, a TT or telegraphic transfer, a wire transfer, or fx international payment is a reliable and efficient form of electronically moving money from one bank account to another, even in two different countries. This process leverages the safe and fast mode SWIFT (Society for Worldwide Interbank Financial Telecommunication) network to ensure your money gets to its intended recipient safely. 

 

Now, let's get to learn more about the telegraphic transfer. This blog will explore telegraphic transfer and how to use it for financial transactions. 

 

What is Telegraphic Transfer and Its Importance in Global Transactions? 

Telegraphic Transfer, frequently called "TT" or "wire transfer," is a safe and quick method to move money from one bank account to another locally and abroad. Because of its speed, security, and efficiency, it plays a vital role in worldwide transactions. 

 

Consider sending money to a friend or business partner in another nation. The telegraphic transfer allows you to send funds to their bank account electronically. This method includes your bank asking the recipient's bank to release the cash, making it a dependable and speedy process of completing transactions. 

 

The significance of telegraphic transmission in international commerce is multifaceted. 

Firstly, it improves the speed of cross-border business and transactions. Companies can promptly pay suppliers and receive payments from customers. 

 

Secondly, it offers security by minimising the risks associated with physical cash transfers or slower methods like mailing checks. 

 

Moreover, telegraphic transfers enhance transparency. The sender and the recipient receive transaction verification detailing the amount transferred, exchange rates applied, and any associated fees. All these give the sender & the receiver complete transparency in record-keeping and conflict resolution. 

 

In the digital age, where business and personal interactions span the globe, fx international payment & telegraphic transfer facilitates swift, secure, and accurate financial exchanges. Its ability to bridge geographical distances and provide financial certainty highlights its importance in global transactions. 



How Do Telegraphic Transfers Work?  

The sender, or remitter, informs their bank about transferring money via a typical international telegraphic transfer. Depending on the bank and its rules, it can be processed in a branch, by mail or fax, over the phone, or online or mobile banking. The sender's bank will transmit the funds to a bank in the recipient's country, and if the fund receiver has an account with that particular bank, the funds will be changed to the appropriate currency and terminated to their account, finalising the transfer. 

 

If the person doesn't have an account, the bank still serves as a middleman, does the currency changes, and sets a fee for processing part of the transfer before providing it. 

 

Role of SWIFT

SWIFT (the Society for Worldwide Interbank Financial Telecommunication) is a system that fosters global transfers between banks by introducing constant standards, which makes transactions less prone to blunder and able to move swiftly. The SWIFT network doesn't really send funds, nor is it a banking system. It only sends payment orders between banks with the help of SWIFT codes. The SWIFT payment system is a means to move money across borders efficiently, quickly, accurately, and securely.  

 

What Are Various Processes for Making a Telegraphic Transfer? 

A Telegraphic Transfer (TT) is a secure way to send money electronically from one bank to another. Security is another strong point of telegraphic transfers. These transfers are typically processed through specific channels and protocols, minimising the risk of fraud or interception during transit. This safety assurance is a significant reason businesses and individuals opt for telegraphic transfers when large sums of money are on the line. 

 

1. Contact Your Bank: Check if your bank allows online international payments. If yes, you can transfer without leaving home. If not, consider visiting the bank. Verify through their website or a quick call. 

 

2. Provide Information: Your bank must provide specific details about the recipient's account. This includes the recipient's name, account number, bank name, and SWIFT/BIC code – a unique identifier for the bank branch. 


3. Amount and Currency: Determine the amount you want to send to the receiver and the currency in which you want to transmit it. 


4. Fees and Exchange Rates: You must assess the bank's conversion rate against the mid-market rate for a fair assessment. While they might not provide an exact figure, posing the question matters as it significantly impacts the true expense of your transfer.  


5. Authorisation: Once you agree to the terms and costs to transfer money, your bank will soon initiate the transfer. You may need to provide your authorisation through a signature or an online verification. 


6. Confirmation: Once the verification is sent from the bank, you will receive a receipt or confirmation with a unique transaction reference number after initiating the transfer. Hold onto this for your records and tracking. 


7. Tracking the Transfer: Many banks offer online tracking services, permitting you to monitor the progress of your transfer. You can also inquire about the expected delivery date with the bank. 

 

If you are a business owner in Singapore and want to move your money globally, we recommend opting for a business account that employs the SWIFT method, minus the pricey intermediary charges – more on this in the upcoming article. 


Costs Involved with Telegraphic Transfers

A telegraphic transfer is a way to send money electronically between banks, where a transfer starts and ends in different countries. 

 

Therefore, sending money cross-border transfers with SWIFT can vary from $10 to $30. Domestic rates can vary by financial provider, jumping from $0 upwards. Besides your current bank charges, intermediary and destination banks may also add fees. Plus, if your funds are converted to foreign currency, you might face an unfavourable exchange rate. Traditional banks can inflate rates, easily devaluing your money.  

  

With Grof’s business account for your global transfers, costs are clearer and likely lower. We consistently employ the mid-market rate, without sneaky bank charges. What you see within the app is exactly what you pay – absolutely no concealed charges! 

 

Adding to that, our latest enhancement – the multi-currency wallet feature allows you to transfer and receive SGD, USD, and EUR with renowned local banks, all while enjoying an almost negligible exchange rate and the convenience of same-day availability


Conclusion 

Now that you've got the hang of telegraphic transfers, you're in the know about the costs involved. Keep those smart moves coming by using tools or solutions that cut down on those pesky fees. Don't let cross-border payment hurdles hold you back from going global! Schedule a free demo and let's chat about how we can help turn your dreams into a reality! 

 

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Uncover the nuances of Goods and Services Tax (GST) and the advantages for companies registered for it, alongside the responsibilities of a GST-registered business. Get your free copy today!
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