Telegraphic transfer

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Telegraphic Transfer or Telex Transfer, often abbreviated to TT, is a historic term used to refer to an electronic means of transferring funds overseas. A transfer charge is collected while sending money.

Historically "T/T," meant a cable message from one bank to another in order to effect the transfer of money. Prior to the existence of electronic payment networks this was often directly between banks via a Telex message.

Current use[edit]

The term is now most often used in UK Banking and in law to refer to either a CHAPS transfer for domestic transfers or a SWIFT transfer for international transfers.

The term is also used to describe other electronic funds transfer methods and, incorrectly, BACS (Bankers Automated Clearing Services) payments.

Japan[edit]

In Japan, "Telegraphic Transfer" is the industry term for quoting retail exchange rates (larger quantities are quoted individually), and is divided into 3 rates, stated in yen, from the point of view of the quoting bank: [1][2]

The middle rate is the average of the buying and selling rate, and these trade at a fixed bid–offer spread (in yen). For example, the USD is quoted with a spread of 2 JPY, so if the mid-market rate is 100 JPY = 1 USD, the rates are as follows:

These rates are published daily by major Japanese banks, and used for accounting and tax calculations, in addition to retail use.

See also[edit]

References[edit]

  1. ^ 三菱UFJ 本日の為替相場, Mitsubishi UFJ: Exchange Quotations, (Japanese)
  2. ^ MONEYKit: TTS/TTB/TTM (Sony Bank) (Japanese)