Telegraphic transfer fees (2024)

A telegraphic transfer or TT is an umbrella term used to describe an electronic transfer of money from one bank account to another. Usually, these TT payments are made to a bank account based overseas, and often in a different currency.

Telegraphic transfers have lots of different names, but whatever your bank calls them, they can come with pretty high fees. Costs can be added by the sender’s bank, and the recipient’s bank - but also by correspondent banks along the way if the money is moved using the SWIFT network. More on that later.

If your bank isn’t offering you a good deal on your TT payment, then it’s well worth checking out alternative providers such as Wise. You could find that your payment is cheaper* - and often faster and easier to arrange - than using a TT bank payment.

Here’s all you need to know about telegraphic transfers - and how to limit or avoid the costs associated with them.

A quick guide to wire transfer terminology

As we’ve seen, a telegraphic transfer is where you’re sending money electronically with your bank or an alternative non-bank provider, to be deposited to someone else’s bank account, either in the US or overseas. Where this can get confusing is that telegraphic transfers can have lots of different names.

A telegraphic transfer may also be known as a telex transfer, and can be shortened to either just TT or T/T. The exact terminology used varies from country to country - and depends on the transaction itself too.

You might also see these transfers described as remittances or wire transfers. In any case, we’re talking about the same thing - the process of arranging a payment from one bank to another, electronically, for direct deposit to your recipient’s account.

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Telegraphic transfer (TT) fees: what can you expect?

One of the reasons TT payments can be costly is that there are often several different fees to pay on a single transaction. These will vary a bit depending on exactly what currency you’re sending, and where.

You’re likely to come across the following:
  • A charge made by the bank arranging the transfer (sending bank fee)

  • Fees taken by intermediary or correspondent banks, as your money moves overseas through the SWIFT network

  • A currency spread or markup added onto the exchange rate

  • Costs charged to the recipient by their bank

TT bank payment sending bank fee

When someone sets up a TT payment, they’ll usually be charged by their own bank to do so. This could be a fixed cost, or a percentage of the amount transferred, depending on the bank and account type.

The details of the costs will vary, but the fee is usually charged up front, or removed from the amount being transferred before it’s converted into the currency of the recipient’s bank account.

TT bank payment intermediary bank fees (up to 3 banks)

Once the TT bank transfer is on the move, it’ll usually be processed via the SWIFT network. This is the global network of banks which was set up to move money internationally.

Although the SWIFT network is well established and safe, it’s not a quick option, and usually comes with high fees. Even worse, it’s not always possible to know exactly what the fees might be before the transaction is completed, because each bank that has a hand in moving your money can apply a fee. With up to 3 different correspondent banks working together on a single transaction, this can get pricey.

Alternative providers like Wise use a different approach to moving money internationally and can help you save by not having your money go through intermediary banks at all.

TT bank payment exchange rate markups

Telegraphic transfers can also come with some fees which are harder to calculate - a common one being an exchange rate markup.

This happens when banks take the mid-market rate, and add their own margin on top as a markup. Your transaction can cost you more than you expect, as a result.

Check the exchange rate your bank is offering you against the mid-market rate by simply googling your currency pairing, to see if you’re getting a fair deal. And if not, go elsewhere.

Not all services add a markup to the exchange rate being used. For example, if you arrange your international money transfer with Wise, you’ll get the mid-market rate - with the costs split out so you can check and compare them, and no hidden fees.

TT bank payment recipient bank fee

Finally, the recipient might also have to pay a charge levied by their own bank, in order to receive a TT payment.

These fees vary between account types, and banks - check out the details of your own bank account, in their terms and conditions, which should be available online.

How much can a bank wire cost?

So, we’ve reviewed the range of fees you might encounter when sending a telegraphic transfer with a US bank - but what will the total cost be? While each transfer is likely to be different, we can look at a few examples to paint a picture.

To learn more about your specific account or payment you’ll need to review your own bank’s terms and conditions carefully. Let’s take a few key examples.

TT bank payment sending fee

To give a flavor of the costs of sending a TT bank payment in the US, here are a few costs to consider:

Bank/TT serviceBank of America®¹Wells Fargo®²Chase®³
Outgoing domestic TT

30 USD

Some waivers available for Diamond and Diamond Honors customers

25 USD

25 USD online

35 USD by phone or in branch

Outgoing foreign TT in foreign currencyNo fee from BoANo fee

5 USD fee, waived for payments above 5,000 USD online

50 USD by phone or in branch

Outgoing foreign TT in USD

45 USD

Some waivers available for Diamond and Diamond Honors customers

25 USD online

40 USD by phone or in branch

40 USD online

50 USD by phone or in branch

You’ll notice that the fees vary quite a lot, based on the way you arrange your payment and the currencies involved. If your bank doesn’t charge a fee for outgoing TTs in a foreign currency, that’s likely because there’s a markup on the exchange rate, which is where they cover their costs and generate a profit. More on that in a moment.

TT bank payment SWIFT fees

Bank intermediary fees vary a lot, and can’t always be known in advance. When you set up your TT payment with your bank you’ll not usually know which intermediaries - and how many - will be involved.

Some banks may be able to give you an indication of the intermediary bank charges - but this might not be possible. Instead, you’ll find banks include disclaimers like ‘third party fees may apply’ in their fee schedules to cover this possibility.

So what’s the likely damage? Up to 3 intermediaries can be involved in a single payment, with fees often in the region of 10 USD - 30 USD per bank, or even more.

As these fees are deducted from the amount you’ve sent as it passes through the SWIFT system, the end result can be that your recipient gets less than you expected.

TT bank payment exchange rate

Bank’s don’t generally declare their exchange rate markup. Again, you’ll usually find something in your account terms and conditions which says your bank ‘makes money on currency exchange’ or ‘offers an all-in exchange rate’.

This means that the bank can use a variable makeup depending on the transfer you’re making, including the currency, value and channel you use.

To see the exchange rate markup being used for your specific payment, compare the rate your bank quotes you against the mid-market rate from Google, or from a currency conversion tool.

TT bank payment recipient fees

Our final likely cost is actually applied by the recipient’s own bank. These fees can vary depending on where in the world your recipient is. In some countries they’re pretty high, in other countries there may be no fee at all.

You’ll need to ask your recipient to check the terms of their account to learn more about the costs here - but to give a bit of an idea, we’ll look at the TT bank payment recipient fees for incoming transfers to a few popular US banks:

Bank/TT serviceBank of AmericaWells FargoChase
Incoming domestic or international TT

15 USD

Some waivers available for Diamond and Diamond Honors customers

15 USD15 USD, waived in some circumstances if the transfer has come from another Chase account

Telegraphic transfers can be a bit confusing - particularly because they are called so many different names by different banks and international transfer services. The process is actually relatively straightforward though - but that doesn’t mean it’s cheap.

Avoid the worst of the fees associated with TT payments, by doing your research in advance. You could find you’re better off using an alternative provider like Wise, instead of sticking to your bank.

Sources:

  1. Bank of America - Advantage Plus banking fees
  2. Wells Fargo personal fees
  3. Chase personal fees

Sources checked on 05.24.2024

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

Telegraphic transfer fees (2024)

FAQs

Is there a charge for telegraphic transfer? ›

A charge made by the bank arranging the transfer (sending bank fee) Fees taken by intermediary or correspondent banks, as your money moves overseas through the SWIFT network. A currency spread or markup added onto the exchange rate. Costs charged to the recipient by their bank.

How to avoid international wire transfer fees? ›

Make Cross-Border Payments

Digital wallets are independent of banks and can hold funds in multiple currencies, with transparent exchange rates. Because of this, they can circumvent many of the fees and costs associated with wire transfers, making it even easier to send money abroad, all over the world.

Do banks charge for telegraphic transfer? ›

When making a TT payment, you should expect to pay fees that cover the charges made by each bank involved in the transaction. These fees are charged because of costs related to processing by the sender's bank, the recipient's bank, intermediary banks, and any costs related to currency conversion.

Can I ask the bank to waive wire transfer fees? ›

Some US banks and transfer providers do offer fee discounts — or could even waive wire fees entirely — for some customers. Ask your bank if there's an option to cut your costs, or have a look at your specific account terms and conditions to understand your options.

What are the disadvantages of telegraphic transfer? ›

The major disadvantage is that processing payments, that can take some time. Payments may occasionally need to pass through many banks before they reach their receiver, especially with overseas transfers, which might cause delays.

Is telegraphic transfer expensive? ›

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 much does a telegraphic transaction cost? ›

Telegraphic Transfers
Fee typeFee
Fee typeOutward telegraphic transfersNZD $25.00 (Other bank fees may apply)
Fee typeTelegraphic transfer investigation feeNZD $25.00 (Outbound only - Other bank fees may apply)

How much is a TT fee? ›

Your Telegraphic Transfer Fee, often called (CHAPS) is the cost that the bank charges for the money that needs to be transferred from your lender to your solicitor to buy your new property. This usually costs around £40 to £50 and it is often used to make high payments.

Do banks still do telegraphic transfers? ›

Telegraphic transfers are now even faster because you have the convenience of our online Overseas Payments service. All you have to do is: Sign in to Business Online Banking. Select 'Overseas' from the list of options and follow the simple steps.

Who pays international wire transfer fees? ›

The sender's bank will charge the sender a fee for the payment orders, while the beneficiary pays the charges of any intermediary bank (and those of his / her own bank, if there are any). The intermediary bank fees are deducted from the amount transferred.

How to send money internationally for free? ›

OFX
  1. International Transfers. Transfers available in more than 170 countries and over 50 currencies.
  2. Fees. $0 fee for any size transfers.
  3. Secure and regulated. OFX is ASX-listed and monitored by over 50 regulators globally.
Jul 24, 2024

Why did my bank charge me a wire transfer fee? ›

Why do banks charge for wire transfers? Some banks charge a fee for the work required to receive incoming wire transfers or process outgoing wire transfers. And when banks convert money for consumers, they charge a higher markup, a percentage of the amount being sent.

Is there a fee for transferring money internationally? ›

Most banks separate fees into incoming and outgoing wire transfer fees, and whether the transfer is domestic or international. Outgoing wire transfer fees range from $20-35 for domestic transfers, and $35-50 for international transfers.

Is telegraphic transfer same as international transfer? ›

Consequently, some institutions may use telegraphic transfer (TT) to highlight international transactions, while wire transfer might be used as a term for both domestic and international transfers. Therefore, you might see different associated fees, with TT being higher because of its international nature.

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