What is a Wire Transfer?

Telegraphic transfer is a trade term that refers to remittance through a telegram. Telegraphic transfer is a way for the payer to deposit a certain amount with the remittance bank. The remittance bank sends a telegram or telephone to the destination branch or agent bank (remittance bank) and instructs the remittance bank to pay the payee a certain amount of payment. . ^[1] Now gradually replaced by electronic remittances.

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Wire transfer

Difference between wire transfer and check

Different settlement areas: Wire transfer is applicable to off-site settlement.

In China, only internally connected banks can transfer money in real time. Accepted by various banks

When making a wire transfer, the sender should fill in the remittance application and indicate in the application that wire transfer is used

Remittance is a type of remittance unit entrusting a bank to remit money to a remote collection unit

In these two exchange settlement methods, the cost of letter transfer is relatively low, but the speed is relatively slow, while wire transfer has the advantage of fast speed, but the sender has to bear the high cost of telegram and telex, so usually only in emergency or Applicable when the amount is large. In addition, in order to ensure the authenticity of the telegram, the remittance bank shall add the password agreed upon by the parties to the telegram; while the letter of exchange does not need to add a password, only the signature is required.

Foreign exchange settlement has a wide range of applications, simple procedures, flexibility and convenience, so it is currently a widely used settlement method.

First, exchange settlement, whether it is letter or telegraphic transfer, there is no limit on the amount of starting points, regardless of the amount of money and the amount can be used.

Second, remittance settlement is a settlement method in which the sender actively pays to another place. It is very convenient for the transfer of funds between subordinate units in different places, the settlement of old debts and the settlement of current funds. The exchange settlement method is also widely used for the transaction settlement method of remittance and delivery. If the sales unit lacks understanding of the credit status of the purchase unit or the product is in short supply, the purchase unit can make the remittance first, and then ship the goods after receiving the payment to avoid receiving no payment. Of course, when the purchaser adopts the transaction method of remittance and then delivery, it should thoroughly understand the credit status and supply capacity of the sales unit, so as not to blindly remit the money without receiving the goods. If there is a lack of understanding of the sales unit's capital situation and supply capacity, the money can be remitted to the place of purchase, a temporary deposit account should be opened at the place of purchase, and someone will supervise the payment.

Thirdly, in addition to the transfer of funds between units, the exchange settlement method can also be used by the unit to pay relevant payments to individuals in other places, such as retirement wages, medical expenses, various labor costs, manuscripts, and so on. Relevant payments made, such as mail-order goods, books, etc.

Fourth, the exchange and settlement procedures are simple and easy for units or individuals to handle.