What is a TT?

A telegraphic transfer, also known as a TT, is a method of electronic funds transfer (EFT) used to send and receive money internationally. The term "telegraphic" refers to the historical use of telegraphs to transmit messages, although modern TTs are typically sent and received electronically via computer networks.

The process of a TT begins with the sender initiating the transfer at their bank or financial institution. The sender provides the necessary information, including the recipient's name and bank account details, as well as the amount of money to be transferred. The sender's bank then sends a message to the recipient's bank through a network of correspondent banks, requesting that the funds be transferred to the recipient's account. The recipient's bank confirms the transfer, and the funds are credited to the recipient's account.

TTs are considered to be a relatively fast and secure way to transfer money internationally, as the funds are transferred electronically and can be tracked through the correspondent banking network. However, they can also be relatively expensive, as banks typically charge fees for each stage of the transfer process. Additionally, TTs are generally only used for larger sums of money, as the fees associated with smaller transfers may be prohibitively expensive.

Overall, Telegraphic transfer is a fast, secure and efficient way of sending and receiving money internationally, but it can be relatively expensive due to the fees charged by banks for each stage of the transfer process.

History OF TT

The history of telegraphic transfers (TTs) began in the mid-19th century with the invention of the telegraph, which was used to send messages to other banks requesting the transfer of funds between accounts. This was a significant improvement over the previous method of sending money, which involved physically transporting cash or bank drafts. The use of telegraphs led to the development of a standardized system for international money transfers, known as the International Monetary Telegraphic Transfer (IMTT) system, based on the use of telegraphic codes. With the advent of electronic communication, the telegraph was replaced by computer networks, but the term "telegraphic transfer" remained in use to refer to international money transfers, as it had become a widely recognized term in the banking industry, and now it's done mostly through SWIFT network.

Speed

Telegraphic transfers (TTs) are considered to be a relatively fast way to transfer money internationally. The funds are transferred electronically and can be credited to the recipient's account within a few days or sometimes even sooner, compared to traditional methods such as mailing a check or physically carrying cash, which can take weeks or even months.

Convenience

TTs allow for easy and convenient international money transfers, as the sender can initiate the transfer from their own bank and the recipient can receive the funds in their own account.

Security

TTs are considered to be a secure way to transfer money, as the funds are transferred electronically and can be tracked through the correspondent banking network. Additionally, the use of reference numbers and transaction codes can provide a high level of security and prevent fraud.

Reliability

TTs are widely used and accepted by banks and financial institutions worldwide, and the correspondent banking network ensures that the funds are transferred to the correct account, reducing the risk of errors or misdirection.