What is a telegraphic transfer?

Learn everything you need to know about how telegraphic transfers work in Australia.

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When you're sending or receiving an international money transfer through a bank, you'll often see the terms "telegraphic transfer", "TT" or "wire transfer".

In this guide, we'll help you figure out what the different terms mean and the process behind sending money across borders.

Quick definition: Telegraphic transfers

A telegraphic transfer is what you get when you go to a bank to make an international money transfer. It means your money will be bounced along a network of correspondent banks until it arrives at its destination.

How does a telegraphic transfer work?

A telegraphic transfer works by bouncing money between different banks until it arrives at its destination. Each bank the money passes through en route will have its own fees and processing times, which is why telegraphic transfers can be slow and more expensive than a money transfer service.

This network of banks is called the SWIFT network.

Money will only pass between banks with pre-existing commercial relationships, known as "correspondent banking" relationships. Each correspondent bank en route will take a cut of the money as they handle it to cover processing fees and may take a day or two to process the payment.

There are two main reasons why banks can only pass money through other correspondent banks:

  • Anti-money laundering laws require banks to know whose money they're handling. By ensuring an unbroken chain of trust between banks, the final bank at the destination can safely assume the customer was appropriately vetted, and that it's handling money in compliance with international law even though it hasn't personally verified the sender.
  • Banks can't constantly be physically sending money around the world every time a customer needs to make a payment. So instead, they maintain a system of "nostro" accounts with each other.

What are nostro accounts?

Correspondent banks hold nostro accounts with each other to facilitate international payments.

With this system, correspondent banks can simply add and deduct amounts from the nostro accounts to account for payments sent to them from partner banks as they pass through.

So when you send a telegraphic transfer, it will ripple through a series of nostro accounts at different banks until it arrives at its destination.

The number of banks in a chain will vary depending on the payment corridor. For straightforward transfers to or from USD, there might only be two or three. For other corridors, there will often be more since US dollars tend to serve as a hub.

For example, if you're sending money from Australia to Europe, it might go something like this:

  • Your bank. You go to your bank. It gets your AUD and converts it to US dollars through its nostro account at the intermediary bank.
  • Intermediary bank. Converts the US dollars to euros through its nostro account at a European bank.
  • European bank. Sends the euros to the bank of the person who's receiving the money.
  • Receiving bank. Receives the money from the other European bank and hands it to its customer – the person you wanted to send money to.

An infographic about how a telegraphic transfer works

How can I make a telegraphic transfer?

To make a telegraphic transfer, you will need to do the following:

  1. Go to your local bank's branch, app or website.
  2. Ask to send an international money transfer.
  3. Fill out the form either in-person or online.
  4. Pay the transfer amount and applicable fees.

What are the fees for a telegraphic transfer?

Your transfer is going through multiple banks, so each one may take a fee. We can break the fees down into four parts:

  1. Sender's bank fees. Your bank will let you know how much these fees are upfront. In Australia, this fee ranges from $6 to $30, depending on the bank.
  2. Corresponding bank fees. These fees come from the banks your money is sent to along the SWIFT network to your recipient. While your bank may warn you about these, it can sometimes be unclear how much they are.
  3. Exchange rate margin. Banks and most money transfer services add a margin to the exchange rate to cover their own fees. This margin can vary depending on your payment method and currency, but banks tend to add more than specialist transfer services.
  4. Recipent's bank fees. Depending on the bank, there may be fees for the beneficiary to receive the transfer.

When you initiate your transfer, you'll often be given the choice of paying these fees yourself or having them deducted from the receiver's funds.

What information or documents will I need?

To send a telegraphic transfer, you'll need to provide the following:

  • Your (the originator's) details. This includes your name and bank account details, or the details of the originator if you're sending money on behalf of someone else.
  • The recipient's (beneficiary's) details. This includes the recipient's bank, bank account number, address, name and contact details. This may include an IBAN or SWIFT code.
  • Transfer details. This includes the amount, the reason for the transfer, the currencies, the date and any other information the bank requests.

Cheaper alternatives to telegraphic transfers

The most important thing to know is that when you send money through a bank, it'll typically take the form of a telegraphic transfer or TT, and that means it will usually be much more expensive than using a money transfer service instead.

Check out some money transfer services below to see if you can find a better deal.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 1 2 days AUD 9.00 0.664 USD
6,634
Transfer to over 99 countries via online banking, phone banking or through an ANZ bank branch. Go to site Show details
AUD 2,000 1 day AUD 0.00 0.683 USD
6,827
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.
Go to site Show details
AUD 3,000 1 day GBP 20.00 0.683 USD
6,818
Global Reach will match any competitor's exchange rates. Conditions apply.
No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.683 USD
6,827
Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.683 USD
6,827
SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.
Go to site Show details
AUD 250 1 - 2 days AUD 0.00 0.683 USD
6,827
$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.683 USD
6,827
BFX can help you send fee-free transfers to 30+ currencies. Go to site Show details
AUD 5 1 - 2 days EUR 3.00 0.679 USD
6,785
Special offer: Pay zero fees on your first 5 transfers.
Get bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Go to site Show details
AUD 1 Within an hour AUD 3.99 0.677 USD
6,770
An online money transfer service with cash pickup, bank account to bank account and airtime transfers available. Go to site Show details
AUD 200 1 day AUD 0.00 0.68 USD
6,800
Low minimum transfer amount of just AU$200, with no set-up fees or transfer fees. Go to site Show details

Compare up to 4 providers


Exchange rates are based on data sourced from each service, but change often. Confirm the total cost with the provider before making a transfer.

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Important Information*
Logo for ANZ International Money Transfer
ANZ International Money Transfer

Transfer to over 99 countries via online banking, phone banking or through an ANZ bank branch.

Logo for TorFX International Money Transfers
TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.

Logo for Global Reach (formerly FC Exchange) International Money Transfers
Global Reach (formerly FC Exchange) International Money Transfers

Global Reach will match any competitor's exchange rates. Conditions apply.
No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount.

Logo for WorldFirst International Money Transfers
WorldFirst International Money Transfers

Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.

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