Cross-border payments have increasingly become common in the modern global economy. Among the many methods available, one stands out for being very safe and efficient: Telegraphic Transfer, or TT. If you are an exporter working extensively with international transactions, knowing more about TT can help streamline your business operations.

This blog will walk you through everything you need to know about TTs, how they work, and even how you can optimise your international payment processes.

What is a Telegraphic Transfer?

A Telegraphic Transfer (TT), also called a wire transfer or international bank transfer, is an electronic means for transferring funds between banks across borders. This transaction is popularly utilised in international trade and considered fast, secure, and traceable.

Telegraphic Transfer Time: How Long Does It Take?

Telegraphic Transfers operate in a network called SWIFT (Society for Worldwide Interbank Financial Telecommunication). Here is how the process works:

Initiation: The sender requests his bank to transfer the funds by specifying the name of the recipient, the account number, and the SWIFT/BIC code of the receiving bank.

Processing: If the sender's and receiver's banks have no prior relationship with each other, then a chain of intermediary banks is activated for the process.

Completion: On completion, the amount is credited into the account of the receiver's bank.

Average processing time for TT

On average, a Telegraphic Transfer takes 1 to 5 business days.

However, several factors can affect the timeline:

Banking Hours & Time Zones: Transactions initiated outside business hours or on weekends may experience delays. Time zone differences also play a significant role in the processing speed.

Intermediary Banks: More intermediary banks involved in the transfer means longer processing times.

Payment Method: Telegraphic transfers are processed more quickly than in the case of international payment gateways or any intermediary.

How to Expedite Your Telegraphic Transfer?

To facilitate a faster transfer, here are a few tips:

Minimise Intermediary Banks: Direct transfers are faster and cheaper.

Cross verify the information: The recipient's details, SWIFT/BIC codes, account numbers and names may be verified to avoid delays or cancellation.

Select the Right Bank: Not all banks are alike in terms of managing overseas remittance. Select the one which specialises in international transactions.

Common pitfalls to avoid

The following are two common errors that can delay your transfer:

Wrong Details: A minor error regarding the correct spelling of the name of the recipient or an incorrect SWIFT code can also lead to time loss and even outright rejection of your transfer.

Time Zone Confusion: Different countries have varying business hours, and so one must be aware of these while making international payments.

Cost of Telegraphic Transfer

Telegraphic Transfers are safe and reliable, though not free of cost. The charges are around ₹1,500 to ₹4,000, depending upon the size and the complexity of the transaction involved.

There can be a breakup of costs:

Receiver's Bank Fees: Intermediary banks may also collect their fees if the transfer goes through them.

Conversion Fees: If you're transferring money in a foreign currency, expect conversion fees that are determined by the exchange rate.

Pro Tip: Scout around for banks which offer better rates and fewer fees, especially for high-value transfers.

Telegraphic Transfer comparison with other forms of payment

Telegraphic Transfers are usually the best option for international payments, but here is a quick comparison with other methods:

Wire Transfer: These are mostly referred to as domestic transfers but can also be used internationally. They are cheaper in some cases, but they might not provide the same speed and security as TTs.

Online Payment Systems (e.g., PayPal, Western Union): Convenient but less secure for large amounts and have higher fees, particularly on international payments.

Checks & Money Orders: Expensive, slower, and less secure than TTs.

How to Fill Up the Telegraphic Transfer Form

When making a TT, prepare the following details:

Sender's Data: Your name, bank account, and the amount you wish to transfer.

Beneficiary's Details: The beneficiary's name, account number, and SWIFT/BIC of his/her bank.

Amount & Currency: The amount as well as the currency to be used in the transaction.

Pro tip: Always, make double checks on details in order to avoid expensive mistakes and delays.

Why Telegraphic Transfer for your Business?

Telegraphic transfers are one of the most secure international ways of transferring substantial amounts of money. The TT will ensure that any payment into which your money was sent is fast, secure, and traceable, including goods, services, or settling up business transactions.

However, making international payments is intricate and requires specific experience. At Infinity, we specialise in optimising cross-border payments, including TTs. Whether you're a small business or an enterprise, we ensure your international transactions are efficient, secure, and cost-effective.

Looking to Streamline Your International Payments?

Are you ready to optimise your Telegraphic Transfer process and ensure that your business experiences faster, more efficient payments? Contact Infinity today and learn how to avoid costly mistakes and reduce delays in cross-border payments. Trust us as your partner in improving your international payment operations.