# Understanding Telegraphic Transfers (TT): Basics, Processes, and Key Features

![Telegraphic Transfer](https://www.investopedia.com/thmb/dVux5KbjVDjuPygyGj7HHK3QOWY=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/TermDefinitions_TelegraphicTransfer__V1_CT-a6e430e29f8343c091d3b53edeffc89e.jpg)

*— Investopedia / Crea Taylor*

> **Definition**
>
> A telegraphic transfer (TT) is an electronic method of transferring funds that is primarily used for overseas wire transactions, and often completed within two to four business days.

## What Is a Telegraphic Transfer (TT)?

A telegraphic transfer (TT) is an electronic method of transferring funds used primarily for overseas wire transactions. These transfers are used most commonly with [Clearing House Automated Payment System](https://www.investopedia.com/terms/c/clearing-house-automated-payments-system-chaps.asp) (CHAPS) transfers in the U.K. banking system, or by the [Society for Worldwide Interbank Financial Telecommunications](https://www.investopedia.com/terms/s/swift.asp) (SWIFT) for international transactions.

Telegraphic transfers typically clear in two to four days. They are also known as telex transfers.

### Key Takeaways

*   Telegraphic transfers, often called TTs or telex transfers, are a type of electronic funds transfer primarily used for overseas transactions and typically take two to four business days to complete.  
    
*   The original communication method for telegraphic transfers involved telegraphs, but it has since evolved to use secure cable networks or cloud-based systems, maintaining rigorous security standards.  
    
*   While they offer rapid service, telegraphic transfers can be relatively expensive, with costs varying based on the transfer amount and the financial institutions involved.  
    
*   International telegraphic transfers are commonly processed through the SWIFT network, providing standardized procedures that enhance security and efficiency.  
    
*   To initiate a telegraphic transfer, basic information such as account and routing numbers, as well as personal or business identifiable information, is necessary to ensure proper identification and secure processing.

## Detailed Overview of Telegraphic Transfers

Originally, as the name suggests, telegraphs were used to communicate transfers between [financial institutions](https://www.investopedia.com/terms/f/financialinstitution.asp). The sender went to their bank and provided the required data about the amount sent and the recipient. An operator at that bank would send a message to the recipient’s bank using Morse code. 

While the telegraph itself has become obsolete, the telegraphic transfer concept has remained—although it has evolved with changing technologies and uses secure cable networks to [transfer funds](https://www.investopedia.com/terms/b/bankgirotransfer.asp). At times, the transfer mechanism may be referred to by the more general term "[wire transfer](https://www.investopedia.com/terms/w/wiretransfer.asp)," or by the updated term "electronic funds transfer" (EFT).

Telegraphic transfers are usually fairly expensive, sometimes including multiple fees, due to the fast nature of the transaction. Generally, the telegraphic transfer is complete within two to four business days, depending on the origin and destination of the transfer, as well as any currency-exchange requirements.

In the U.S., domestic transfers go through the Federal Reserve System, while international transfers use SWIFT.

> **Fast Fact**
>
> SWIFT (the Society for Worldwide Interbank Financial Telecommunication) was launched in 1973. The system facilitated cross-border transfers between banks by introducing uniform standards, which made transactions less prone to error and able to move swiftly.

Although the term covers both U.S. and international transfers, TTs are mostly linked to SWIFT transfers. The use of these systems provides a level of security to the transaction as well as a set of standards and regulations to control how the transfers take place.

The cost of a telegraphic transfer depends on variables like the transfer amount and the chosen institution.

> **Important**
>
> Associated fees to complete the transfer aren't standardized across all institutions and can thus vary dramatically from one institution to the next.

## Essential Information Needed for Telegraphic Transfers

Certain information regarding the sender and destination is required to complete the transfer. Whether a person [transfers funds](https://www.investopedia.com/how-to-wire-money-5088001) between two accounts that are both held in their name, or between two accounts held by two different individuals, the most pertinent information required for the transfer is the relevant account numbers and details of the corresponding financial institutions.

Personal identifiable information is also required for security purposes and to confirm the identity of the sender. Similar requirements exist for business entities, but the identifiable information relates to the business, instead of the individual.

## Why Was It Called Telegraphic Transfer (TT)?

Originally, money transfers between financial institutions were once accomplished over telegraph wires. Because the telegraph itself has become obsolete, the telegraphic transfer concept has evolved with changing technologies. Now, funds move via cable networks or cloud-based apps.

## What Are the Key Characteristics of a Telegraphic Transfer?

Telegraphic transfers provide a level of security as well as a set of standards and regulations to control how the transfers take place. Generally, the TT is complete within two to four business days, depending on the origin and destination of the transfer, as well as any currency exchange requirements. TTs are also usually fairly expensive—the price one pays for the rapid service.

## How Are Telegraphic Transfers Processed?

TTs are used most commonly in connection with [Clearing House Automated Payment System (CHAPS)](https://www.investopedia.com/terms/c/clearing-house-automated-payments-system-chaps.asp) transfers in the U.K. banking system. U.S. domestic transfers of funds sent between institutions are transferred through the Federal Reserve System, while international transfers use the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

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

The most pertinent information required for the telegraphic transfer is the account numbers and [routing numbers](https://www.investopedia.com/terms/r/routing_transit_number.asp) of the parties and the financial institutions involved. Then there is the amount of money being transferred and the bank or non-bank transfer provider, such as Western Union, that is chosen to actually carry out the transaction (though, strictly speaking, TTs are carried out between two banks and don't involve third parties). Other details may also be required for security purposes and to confirm the identity of the sender.

## Final Thoughts on Telegraphic Transfers

A telegraphic transfer (TT) is a secure electronic way of transferring funds that is used primarily for overseas wire transactions. Usually, a telegraphic transfer is complete in two to four business days, depending on the origin and destination of the transfer. However, they can have high transaction fees, and it is important to have accurate account information when making a transfer.

Telegraphic transfers were originally conducted by telegraph but are now executed through secure cable networks. They are also known as telex transfers (TT), or more generically as wire transfers or electronic funds transfers.

> **Article Sources**
>
> 1.  WorldRemit. "[Telegraphic Transfers: Everything You Need To Know](https://www.worldremit.com/en/blog/money-transfer/telegraphic-transfers/)."
>     
> 2.  OFX. "[What Is a Telegraphic Transfer](https://www.ofx.com/en-us/money-transfer/telegraphic-transfer/)?"
>     
> 3.  MoneyTransfers.com. "[Telegraphic Transfers](https://moneytransfers.com/bank-transfers/telegraphic-transfer)."
>     
> 4.  Society for Worldwide Interbank Financial Telecommunication. "[SWIFT History](https://www.swift.com/about-us/history)."