The telegraphic transfer, also known as the wire transfer, is a process that transfers funds from one institute to another. This has been a traditional form of money transfer from one bank account to another bank account.
Even today, making a money transfer through a telegraphic transfer can be quick, effective and cheap. However, any mistake you make can cost you time, resources and money. Here are some of the mistakes you need to avoid when making a money transfer through this medium:
Getting your account details wrong: As a part of the wire transfer process, you would require the bank account and routeing numbers, for the both the sender and the recipient. However, theses bank account numbers will have different formats that vary from country to country. If you are making an international money transfer, you need to be aware of the code and the bank account you will be transferring to. Any wrong detail in the account number will reject your transfer, or send it to the wrong account number.
Failure to convert the currency into the local one: When you make a telegraphic transfer, you begin the process with your currency, and expect the right currency to arrive at the recipient’s account.
However, not many are aware that the currency conversion also matters. If you are not aware of the currency conversion or even skip it, two possibilities can occur. Either the transfer will be rejected, or the bank might be converted the funds at a higher exchange. Either option will put a strain on the recipient, especially if it results in a delay of the delivery, or the funds transferred is lower than expected.
Being aware of the upfront fees only: There are two primary costs when it comes to sending funds on an international basis. The primary charge is the service fee that the institute will charge for sending money. The second cost is what you will end up paying, in order to change the dollars into the local foreign currency. These costing will change depending on the two currencies, and the provider itself. Most of the service providers generally mark the exchange rates for customers to make a profit on the transfer. You need to be aware of this.
Failing to check the estimated delivery time: Each provider will have a different transfer speed, especially if it has to be done overseas. Furthermore, some of the transfer options will have different payment methods, which will affect your delivery option, which in turn will impact the speed of your money transfer. Normally, paying with a banking card will usually speed up the delivery. However, it can be expensive when compared to the direct withdrawal from the bank account.