Wire Transfer VS Telegraphic Transfer: What’s the Difference
While the telegraphic transfer is one of the least known money transfer methods, it is reliable, and you can use it to send money worldwide. Wire transfer is also one of the most common funds transfer methods globally. You may wonder, “Which is better?”
Before you choose any money transfer method, you must understand the difference between wire transfer vs. telegraphic transfer. Both are electronic modes of money transfer, but international wire transfer mainly uses the SWIFT network.
This article states the pros and cons of each money transfer method to help you understand the differences and choose what’s more convenient for you.
Wire Transfer and How it Works
A wire transfer is an international electronic mode of money transfer through a network administered by bank and transfer service agencies. It uses money transfer services like Western Union and MoneyGram.
The receiver can either collect the money in cash at the partner site of the wire transfer service used by the sender or get it deposited in their bank account. It involves a fee between $15 and $50, depending on the type of transfer.
Wire transfer fees vary if you are the sender or receiver of the cash, are doing an international or domestic transfer, or are using US dollars or foreign currency.
One great advantage of using wire transfer is you get all the information about the total amount you will pay. You will see the total amount you send, the recipient’s amount, and the transfer fees. You also get information about the taxes.
Wire transfers take a short time for the transaction to be completed. For example, a domestic transfer can take a few minutes. However, international transfers can take even days for the money to reflect.
International wire transfer delays are due to bank holidays, delays at intermediary banks, and slow-paying countries. However, once the funds are credited to the receiver’s account, they are ready to withdraw.
The Pros and Cons of Wire Transfer
One of the ways to compare wire transfer vs. telegraphic transfer is by checking their pros and cons.
Pros of Wire Transfer
Wire transfer benefits its users in different ways. Some of them are;
You can send money through a wire transfer in the comfort of your home, as the money transfer method is easy and does not require the sender to go to a bank. To send money, you must enter your name, contact information, and the amount to transfer.
The next step is entering your bank’s routing and account numbers. When entering the recipient’s information, always counter-check to ensure it is correct. Then sign to authorize the transfer.
Wire transfers take a few minutes to transfer money from the sender’s account to the recipient. The sending process is also short and takes a short time to be approved. However, transactions may delay during the holidays and weekends.
It is Available Worldwide
You can transfer money to all parts of the world using wire transfer. It makes it easier for people with relatives and friends living abroad. Besides, since many wire transfer services have links with banks, you can get the money sent from the nearest bank.
Cons of Wire Transfer
While it is easy to use wire transfers, and you can send money globally, it does have some disadvantages.
Most services that facilitate money transfers charge a fee to the sender but not the recipient. However, some wire-transfer companies charge a fee to the recipient and the sender. This is bad news for people who use wire transfers, since they’re generally required to pay more.
Sometimes you might get the receiver’s contact information and send money to the wrong person. While you can potentially reverse the transaction with other money transfer services, it is not possible with a wire transfer.
Scammers find it easy to get victims on the wire transfer. It is because transfers are made anonymously, and the only way to claim money is by using transaction codes and tracking numbers.
Telegraphic Transfer and How it Works
Telegraphic Transfer or Telex Transfer is an electronic method of money transfer internationally. TT is easy to use and fast. It takes about 2-4 days for the transaction to be completed.
Although the telegraphic method of money transfer is fast and secure, it is expensive. Also, the cash delivery depends on bank holidays, weekends, and the origin and destination.
How to Make a Telegraphic Transfer
Sending money through telegraphic transfer is possible through three easy steps. First, go to the internet banking website of your bank and select the option of sending a telegraphic transfer.
You will then fill in the details of the receiver and crosscheck if they are correct. If you want to send the money to your international account, fill in your details and ensure they are correct.
The last step is paying the bank for the transfer. The sender can pay the bank the entire amount they want to transfer or authorize it to deduct the fees from the amount received.
How to Receive Telegraphic Transfers
Receiving a telegraphic transfer is simple. Your sender will ask for your bank’s name, branch address, and BIC or SWIFT code. You must also give your account number and name without your initials, BSB number, and street address.
Pros and Cons of a Telegraphic Money Transfer
Like other money transfer methods, telegraphic transfers have pros and cons.
Pros of Telegraphic Transfer
Here are the benefits of using telegraphic funds transfers.
Telegraphic money transfer is safe, giving the sender and receiver peace of mind. This is important whether you are transacting smaller large amounts of money, given the increase in online scammers.
Sending money using the telegraphic method is easy and less complicated. You only require the receiver’s information, which you must crosscheck to ensure it is correct. You must also know your bank’s routing number and BIC.
Cons of Telegraphic Transfer
Although you will transfer money safely globally, telegraphic money transfer has disadvantages.
There is no definite amount senders pay to transact using telegraphic transfer. The fee depends on where your recipient is. Exchange rates that fluctuate daily also determine the amount you will pay.
You will also pay extra handling and banking fees for a telegraphic transfer. These charges will also depend on your bank.
There Are Charges For Cancelling Transactions
You might miss a number or two for the recipient when sending money. If this happens when using telegraphic transfer and you cancel, you pay an extra charge for the cancellation.
Like most online money transfer methods, telegraphic money transfers are prone to scammers. You must know how to spot a scam because money cannot be returned once sent.
To be safer, ensure you only use vendors you know and trust and don’t send your details to unknown people online. You should also know the official email address of telegraphic transfers to avoid scammers.
Telegraphic transfer works similarly to the wire money transfer, but the two money transfer methods have their pros and cons. Before choosing the money transfer method, research the fee charged and how fast it is.