Telegraphic transfer is a remittance settlement method in which the remitting bank sends a tested cable/telex or SWIFT to the foreign remitting bank at the request of the remitter, instructing them to pay a certain amount to the payee.Telegrams and telegrams are used as settlement tools, which are safe, fast, and expensive. As the direction of transmission of telegrams and telegrams is the same as the flow of funds, telegraphic transfers belong to sequential transfers.Telegraphic transfer is currently a widely used remittance method, and its business process is as follows: the remitter first sends a telegraphic transfer application and pays the remitter, then the remitter sends a deposit telegram or telegram to the remitting bank, and the remitting bank sends a telegraphic transfer notice to the payee. After receiving the notice, the payee goes to the bank to redeem, and the bank proceeds with the payment. After the payment is completed, the remitting bank sends a debit notice to the remitter, and the remitter also sends a telegraphic transfer receipt to the remitter.International trade, remittance settlementWhen making a wire transfer, the remitter shall fill out the remittance application form and indicate in the application that the wire transfer T/T method will be used. At the same time, the remittance items and required fees will be transferred together and a wire transfer receipt will be obtained. After receiving the remittance application, in order to prevent delays or unexpected losses of the remitted funds due to errors in the application, the remitter should carefully review the application and contact the remitter promptly if there are any unclear areas.When handling telegraphic transfers, the remitting bank shall issue payment instructions to the receiving bank by telegram or telex based on the content of the remittance application. The content of the telegram mainly includes: remittance amount and currency, recipient’s name, address or account number, remitter’s name, address, postscript, position allocation method, remitter’s name or SWIFT address, etc. In order for the remitting bank to confirm that the content of the telegram was indeed sent by the remitting bank, the remitting bank should add the agreed upon security key (Testkey) before the main text.After receiving the telegram or telegram, the remitting bank shall verify whether the encrypted documents match. If they do not match, they shall immediately draft a telegram to inquire with the remitting bank. If it matches, please prepare a telegraphic transfer notice and notify the payee to withdraw the funds. The payee shall present two copies of the notice to the remitting bank for withdrawal, and after signing and stamping the payee’s receipt, the remitting bank shall release the remittance accordingly. In practice, if the payee has an account with the remitting bank, the remitting bank often does not prepare a remittance notice, only receives the payment into the payee’s account with a telegram, and then gives the payee a receipt without requiring the payee to sign a receipt. Finally, the remitting bank will send the paid debit advice to the remitting bank.The telegraphic fees in wire transfers are borne by the remitter, and banks generally process wire transfers on the same day without occupying the remittance funds during the postal process. Therefore, for large remittances or transfers through SWIFT or interbank transfers, wire transfers are often used.
