A telegraphic transfer is simply an international money payment made from one bank account to another. These days it's more commonly known as a wire transfer or electronic funds transfer (EFT).
The reason it's called a telegraphic transfer is because historically the transfer request was communicated between banks via telegram.
How does a telegraphic transfer work?
When you want to send money from your Australian bank account to an account in a different country, your transfer is processed via a network of banks known as the SWIFT system.
Short for Society for Worldwide Interbank Financial Telecommunications, SWIFT is an international intra-bank messaging system that was designed to help make international bank payments more standardised and accurate.
When you submit a telegraphic transfer, your bank will move the money through other banks on the SWIFT network that is has a pre-existing commercial relationship with, also known as "correspondent banking" relationships.
Depending on where you're sending the money to, this process may involve more than one bank.
Each correspondent bank may take a cut of the money to cover processing fees and may take a day or two to process the payment, which is why telegraphic transfers can be slower and more expensive than a money transfer service.
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, which keep track of how much money one bank is holding on behalf of another.
Telegraphic transfer example
Say you wanted to send money from your Australian bank account to a relative's Italian bank account via telegraphic transfer.
Here is what the process may look like:
You submit an international transfer with your bank.
Your bank takes your AUD and converts it to US dollars through its nostro account at an intermediary US bank.
The intermediary bank converts the US dollars to euros through its nostro account at a European bank.
The European bank sends the euros to the Italian bank of your relative.
The Italian bank receives the money from the other European bank and credits it to your relative's bank account.
How can I make a telegraphic transfer in Australia?
To make a telegraphic transfer, you will need to do the following:
Go to your local bank's branch, app or website.
Ask to send an international money transfer.
Fill out the form either in-person or online.
Pay the transfer amount and applicable fees.
Finder survey: What service do Australians use to transfer money overseas?
Response
Money transfer specialist (eg. TorFX or Western Union)
48.89%
Bank
41.11%
Other
10%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
How much does a telegraphic transfer cost in Australia?
The fees you pay for a telegraphic transfer will depend on where you're trying to send the money and how many banks are involved in wiring the money to the recipient's account.
Here's a breakdown of the fees you might need to pay:
Sender's bank fees. Your bank will let you know how much these fees are upfront. In Australia, this fee normally ranges from $6 to $30, depending on the bank.
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.
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.
Recipient'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
Using an international money transfer service can often be quicker and cheaper than sending money via a telegraphic transfers. You can compare transfer services below:
We currently don't have that product, but here are others to consider:
How we picked these
Frequently asked questions
Nothing. When you send an international bank transfer, your bank is sending your money as a telegraphic transfer. Wire transfer is another name for this and is more often used in the US, whereas telegraphic transfer is more often used in Australia, New Zealand and the UK.
No. Telegraphic transfers typically take several days. If you want a fast transfer, you can send money overseas instantly and more cheaply if you use a cash transfer service. Westpac claim to offer
Telegraphic transfers will generally take between 2 to 4 business days, but can take longer depending on where you're sending money to and from, the currency and which bank you and the recipient are using.
Telegraphic transfers are the standard system used by almost the entire financial world, making them one of the safest and most reliable ways of sending money overseas.
But this doesn't mean they're entirely safe. As always, you still need to be aware of the money transfer scams that are out there. There's very little chance of recovering money lost to overseas scammers and generally, you should only send money to people you know.
Andrew Munro was the global cryptocurrency editor at Finder. During his time he covered all aspects of cryptocurrency and the blockchain. Before he became cryptocurrency editor, he was a content writer for Finder covering various topics over his nearly 5 years in the role. Prior to joining Finder he was a web copywriter. Andrew has a Bachelor of Arts from the University of New South Wales. See full bio
Compare international money transfer services to receive money here in Australia.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
