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 (CHAPS) transfers in the U.K. banking system. Telegraphic transfers are also known as telex transfers.

Understanding a Telegraphic Transfer (TT)

Originally, as the name suggests, telegraphs were used to communicate transfers between financial institutions. 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. At times, the transfer mechanism may be referred to by the more general term "wire transfer," 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.

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) network for international transfers.

While the term can refer to both U.S. domestic and international transfers, TTs are most commonly associated with transfers through SWIFT. 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 associated with a telegraphic transfer can also be affected by these variables. Additional factors influencing the cost can include the amount being transferred and the institution chosen to complete the transaction.

Information Required for Telegraphic Transfers

Certain information regarding the sender and destination is required to complete the transfer. Whether a person transfers funds 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.

The Bottom Line

A telegraphic transfer (TT) is an 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. Telegraphic transfers are also known as telex transfers (TT), or more generically as wire transfers or electronic funds transfers. TTs are usually fairly expensive, sometimes charging multiple fees, due to the fast nature of the transfer.