Businesses have been doing telegraphic transfers for decades ago. However, the process back then was a quite old school compared to how it is done these days. Back in the day, if you want to send money to your client, you will have to go to your bank where the teller sends the recipients’ bank a coded message through the telegraph system. This is to inform the recipient of the money transfer request.
It was convenient but never easy. There are just too many things happening for a single transaction to push through. And through the years, things have changed. Now, a cross-border Bank remittance is done electronically. The telegraphic transfer (TT) is faster and less hassle.
How Telegraphic Transfers Work
These days, the process for TT is pretty simple. The sender “remitter” tells the bank to send funds to the “beneficiary” overseas. This can be done personally at the bank or through online banking. Then, the remitting bank transfers the funds to the “correspondent” bank or the bank of the beneficiary.
The funds will be automatically credited into the beneficiary’s account if they happen to have an account with that bank. If not, the money will be transferred again to that bank. Sometimes, the money goes through a couple of banks before it reaches the beneficiary’s bank. But this is not something that either party will notice because everything is done electronically.
Advantages of Telegraphic Transfer
Telegraph transfers are primarily used for international or cross-border payments. This is currently what many companies are using when sending money to and from mainland China. There are plenty of reasons why many businesses prefer to use TT. It’s fast, cost-effective, convenient, and offers global service.
This means that no matter where you are in the world, you can use telegraph money transfer. Also, since the transaction is done electronically, it is considered safer than other methods. So if you know that you have large transactions abroad, it is best that you too should consider a telegraphic transfer.
Consider DBS Priority Pay
If you are looking for a more convenient cross-border inward remittance, then you should consider checking out what DBS SME Banking can offer. They currently offer DBS Priority Pay, the only online remittance that lets customers process telegraphic transfers instantly to any DBS account all across the region. When it comes to speed, efficiency, and transparency of transactions, DBS SME Banking knows how to do it right.