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What’s The Difference Between Electronic Transfers, Telegraphic Transfers, Wire Transfers and IBAN transfers?
The terms used to describe different methods of moving money from one account to another can be confusing. There are electronic, telegraphic, wire and IBAN transfers. So is there a difference and if so what is it? Most of the confusion comes from the fact that the terms are used interchangeably and that they are all quite similar.
What is an Electronic Transfer?
Electronic Money Transfers or Electronic Fund Transfers (EFT) are used to move money from one bank account to another via a computer system without direct human intervention. The transfer can be initiated from an electronic terminal such as an ATM, credit card or point-of-sale. In the U.S. electronic transfers are processed through the Automated Clearing House (ACH).
An EFT can be made between accounts held at the same bank or across banking networks anywhere in the world. Electronic Money Transfers are known by different names and are sometimes called a direct deposit. Direct deposit is the term used for an EFT that deposits your salary directly in your bank account.
EFTs can be used to credit funds to an account such as payroll payments and to debit funds from an account like with a mortgage payment. When you make a payment or purchase using your credit card this is also called an electronic fund transfer.
- Electronic transfer is also called an EFT, bank transfer, direct debit, wire transfer or PIN-debit transaction.EFT is also a broad term used to describe online transactions.
- Transfer using computerized network
- Initiated online, by phone or bank
- Costs vary but generally low-cost
What is a Telegraphic Transfer?
A Telegraphic Transfer (TT) or Telex Transfer is an electronic method of moving money using a secure cable network. TT is primarily used when funds are sent internationally although the term is used for U.S. domestic transfers; CHAPS transfers in the U.K.
and international transfers. For U.S. domestic transfers the funds are transferred through the U.S. Federal Reserve System and for international transfers TT usually refers to funds sent using SWIFT (or SEPA in Europe). TT transfers are distinctively fast (2-4 days), regulated and secure but expensive. The delivery time can vary depending on holidays, weekends, currency exchange requirements and the origin and destination.
The price can also vary according to any necessary currency exchange; the amount being transferred; the institution used for the transfer and other factors. TT transfers are sometimes referred to as wire transfers or electronic fund transfers.
- Telegraphic transfers are also called telex transfers, TT. Wire transfers or electronic fund transfers.
- Electronic transfer of funds, usually international, through SWIFT (go to BIC checker), CHAPS or FRS.
- Expensive; fees not standardized between institutions and can vary.
- Fast 2-4 days