What is a telegraphic transfer and how does it work?

Key takeaways

• A telegraphic transfer is an electronic bank transfer that moves money across borders using the global SWIFT messaging network.

• Traditional banks in Australia usually charge a flat $20 to $35 fee for outward transfers, then add 4% to 6% in exchange rate markups plus intermediary fees on top.

• Airwallex lets you bypass the old bank networks and use local payment rails instead – cutting FX margins to 0.5–1% and settling most payments the same day.

Paying overseas suppliers or managing your global cash flow shouldn't be a headache. But if you're still sending money through traditional bank telegraphic transfers (TTs), you've probably noticed they're slow, expensive, and hard to track. Here's what a TT costs in Australia, how long it takes to clear, and how to send money faster without the big bank markup.

What is a telegraphic transfer in banking?

A telegraphic transfer (TT) is an electronic way to move money between bank accounts, mostly used for cross-border payments. When banks talk about a TT today, they almost always mean an international transfer sent via the secure SWIFT network.

The name sounds old-school because it is – it dates back to the late 1800s, when banks used telegraph cables, radio, and Morse code to send payment details around the world. Even though we've long since moved to digital systems, the name has stuck across Australian, UK, and New Zealand banking.

You'll often see it written as TT, T/T, telex transfer, or simply an international wire transfer. In practice, they all describe the same process: sending money electronically to an overseas account.

What is an inward telegraphic transfer?

An inward TT is when your Australian bank account receives money from abroad or another domestic bank – an incoming transfer, from your bank's point of view.

Major banks typically charge a fee just to process the incoming transfer. CommBank, Westpac, and NAB, for example, charge up to $11, $12, and $15 respectively per incoming transfer. If the money arrives in a foreign currency, your bank will also convert it to Australian dollars at its own retail exchange rate, which usually carries a markup above the wholesale rate.

What is an outward telegraphic transfer?

An outward TT is when you send money from your account to an overseas recipient – like paying an international supplier.

These are usually more expensive, since they trigger several layers of fees. By the time your money travels through the global correspondent banking network, you can expect flat sending fees, exchange rate markups, and intermediary charges.

Telegraphic transfer vs wire transfer vs bank transfer: what's the difference?

People often use these terms interchangeably, but there are a few small differences in scope:

• Bank transfer: The broadest umbrella term. It covers any electronic movement of money from one account to another, domestic or international.

• Wire transfer: Popular in North America, this describes electronic funds transfers (EFTs) processed one by one rather than in batches, and can include domestic networks like Fedwire as well as international payments. See our wire transfers explained guide for more detail.

• Telegraphic transfer: Refers specifically to bank-to-bank international payments sent via the SWIFT network. 

Telegraphic transfers vs BECS transfers

If you're paying people inside Australia, you'll use domestic clearing systems like BECS or the New Payments Platform (NPP) via Osko or PayID.

BECS handles standard batch transactions like payroll and direct debits. It's cheap and reliable, but it isn't instant and can take a business day to process. NPP/Osko, on the other hand, lets you send near-instant domestic payments 24/7.

BECS and NPP are great for local payments, but neither can handle international transfers. For that, you need the global SWIFT network or a local payment rail in the destination country, such as ACH in the US.

Here's how they compare:

How much does a telegraphic transfer cost in Australia?

A telegraphic transfer from Australia typically costs $20 to $35 in bank fees, plus a 4% to 6% markup on the exchange rate¹. Add correspondent and recipient bank charges, and the real cost is often higher than it first looks. Here's each fee layer:

• SWIFT/outward TT fee: The flat fee your bank charges to set up the transfer. Made in a branch or manually, this usually costs $20 to $35. For example, CommBank and NAB charge $30 for assisted branch transfers, while Westpac charges $32. 

• Bank commission: Some banks add a separate percentage-based commission for over-the-counter or large-volume transfers, on top of the flat fee. This isn't always published, so ask your bank for its exact rate before you send.

• Intermediary bank charges: If your bank doesn't have a direct link to the receiving bank, your money travels through correspondent banks instead. Up to three banks can handle your payment along the way, and each can deduct a handling fee of $15 to $50 directly from your principal amount. Some banks may waive this fee so check before you send.

• FX markup: The invisible cost. Banks typically add a markup of 4% to 6% on top of the mid-market exchange rate¹. See our mid-market FX rate explainer to understand how banks build in this margin.

• Recipient bank fee: The recipient's bank also charges a processing fee to accept the incoming payment, usually $10 to $30.

Here's how the fees stack up at a traditional bank versus Airwallex:

How long does a telegraphic transfer take to clear?

A standard telegraphic transfer takes one to five business days to clear. Since your money moves through a chain of correspondent banks, several factors can slow things down:

• Currency corridors and time zones: Sending money to remote regions or across opposing time zones adds delay.

• Intermediary banks: The more banks your transfer needs to pass through, the longer it takes.

• Compliance and security checks: Every bank in the chain runs anti-money laundering (AML) checks, which can flag payments for manual review – a requirement monitored by AUSTRAC to prevent financial crime.

• Public holidays and weekends: Banks don't process transfers outside business hours, so a transfer started on Friday afternoon won't move until Monday morning.

How to send a telegraphic transfer: step-by-step

You can send a standard telegraphic transfer online or in a branch. Here's how to set it up:

1. Gather recipient details: You'll need their full legal name, bank name and branch address, account number or IBAN, and SWIFT/BIC code, plus the purpose of the transfer.

2. Log in or visit a branch: Go to your bank's online portal or head into a local branch.

3. Choose how to split the fees: Select who pays the transfer fees – SHA (split fees), OUR (sender pays all), or BEN (beneficiary pays all).

4. Fill in details and double-check: Enter all recipient and payment details carefully. Typos in account numbers or bank codes can cause major delays or rejected payments.

5. Authorise the transfer: Confirm the exchange rate and complete your bank's security check to send the money.

6. Save the receipt: Keep the payment confirmation or reference number for tracking and matching in your accounting software.

When is a telegraphic transfer still necessary?

Even though they're slower and cost more, you might still need a traditional telegraphic transfer in a few cases:

• SWIFT-only countries: Some countries aren't connected to modern local payment networks, so correspondent banking is the only option.

• Large corporate transfers: Moving very large amounts of capital can require standard banking pathways.

• Letters of credit (LC): If you're using formal trade finance instruments, your bank and your supplier's bank need to route documents and payments via SWIFT to guarantee the transaction.

How do I track a telegraphic transfer?

Every bank and money transfer platform has its own tracking tools. Usually, you can log in, select your payment list, and see where the transfer is up to.

To track a SWIFT payment, ask your bank for the Unique End-to-End Transaction Reference (UETR) – a unique 36-character code that lets you trace your funds in real time.

If the payment gets stuck or takes longer than five days, you can lodge a formal tracer request, though banks usually charge around $25 for the investigation.

Pros and cons of telegraphic transfers

Before you send your next payment, it's worth weighing the upsides and downsides of traditional bank TTs.

Pros

• Global reach: Send money to almost any country through the extensive SWIFT network.

• Highly secure: International regulations keep your payments safe and monitor against fraud.

• High limits: Banks don't typically place strict legal limits on how much you can send, which is handy for big corporate deals.

Cons

• Expensive: Multiple layers of fees, FX markups, and correspondent costs eat into your margins.

• Slow: Transfers can take up to five business days to clear, slowing down your supply chain.

• Heavy paperwork: Typing errors in lengthy codes can cause failed transfers and expensive returns.

Why businesses choose Airwallex for international transfers

Skip the high fees, long wait times, and guesswork of a traditional bank transfer. Here's what you get with Airwallex instead:

• Access local payment rails: Instead of routing through SWIFT intermediaries, Airwallex uses local clearing systems in 120+ countries. Your payments stay inside single domestic networks (like ACH in the US), so they arrive fast and free from correspondent fees.

• Enjoy interbank exchange rates: Traditional banks can charge 4% to 6% in exchange markups. Airwallex charges just 0.5% above the interbank rate for major currencies and 1% for others, saving up to 80% on FX costs compared to traditional providers.

• Speed up your payments: Around 93% of Airwallex local transfers settle on the same day and 45% arrive instantly.

• Open multi-currency accounts: Open local currency Global Accounts in minutes to collect and hold funds in 20+ currencies. This avoids double-conversion fees, so you can pay your team seamlessly across borders.

• Put your idle cash to work: Earn competitive returns on your excess AUD and USD balances with Airwallex Yield – no lock-up periods, no ongoing minimum balance, and funds settling back to your account in one to two business days.

Frequently asked questions

Is a telegraphic transfer the same as a bank transfer?

Not exactly. A telegraphic transfer is a specific type of international bank transfer sent over the SWIFT network. ‘Bank transfer’ is a broader term that includes domestic payments like payroll or everyday bills.

How many days does a telegraphic transfer take?

Typically, a traditional bank TT takes one to five business days to clear. The exact speed depends on the currency pair, time zones, and compliance checks.

Is a telegraphic transfer instant?

No, bank TTs are not instant. SWIFT payments pass through multiple correspondent banks and are subject to mandatory compliance and AML reviews, which means they almost always take at least a day or two.

What information do I need to send a telegraphic transfer?

You'll need the recipient's full legal name and address, bank name and branch address, bank account number or IBAN, and their SWIFT/BIC code. Some banks also require the purpose of the transfer.

What are the most common mistakes when sending a telegraphic transfer?

The biggest slip-ups are typos in the recipient's bank codes, which can bounce the payment; forgetting intermediary bank fees; and not factoring in the bank's retail exchange rate markup.

What happens if a telegraphic transfer fails or is delayed?

If a transfer fails, the funds are held securely in a processing queue or returned to your account. Getting returned funds back can take several weeks and often incurs return fees from the banks involved.

Are there limitations on how much I can transfer via telegraphic transfer?

There's no legal cap on international transfers in Australia, but most banks impose daily online transfer limits for security. For larger transactions, you may need to visit a branch or provide secondary approval.

Sources

1. https://www.rba.gov.au/publications/bulletin/2026/feb/on-the-road-to-better-cross-border-payments-how-is-australia-travelling.html