Published 1 year ago
Is your money a frequent flyer out of Malaysia?
Whether itâs for your family abroad or for your childâs education, sending money overseas can get costly if youâre not doing it optimally.
And, chances are, youâve heard of bank telegraphic transfers as a popular way of sending money internationally. You might even be using it regularly!
But are telegraphic transfers offered by banks the best way to transfer money internationally, or is there a better alternative out there?
In this article, weâll cover what exactly is a bank telegraphic transfer (otherwise known as foreign telegraphic transfer or just âtt transferâ), its various fees as well as whatâs a great alternative you should consider using to send money overseas.
What exactly is a bank foreign telegraphic transfer?
In the past, sending money internationally from Malaysia means a long and tedious process of visiting banks to request for a foreign telegraphic transfer.
The term âtelegraphic transferâ can be traced to dated way banks used to send your money overseas to another bank. They were done via a network of teleprinters, also known as Telex, that sends simplistic messages which arrange the transfer of funds from one bank to another.
While this technology predates even the fax machine and has been replaced by electronic means of transferring money, the term âtelegraphic transferâ has remained in use, and nowadays simply refers to a wire transfer or a SWIFT transfer by a local bank to another bank overseas.
Bank telegraphic transfers are known for charging fees
If youâve performed telegraphic transfers on a regular basis, youâll know fees are widely accepted as a necessary evil even though they can add up significantly.
Here are some common fees that banks charge:
Senderâs bank fees These are fees determined and charged to you by the bank youâre sending the money from. In Malaysia, theyâre likely to vary between RM5 all the way to RM50.
Exchange rates and their margins While not exactly a fee per se, itâs an open secret that banks charge you an extra markup as a way to earn profit from your transfers. While the rates and margins will vary according to the bank, youâll more often than not get on the worse-end of the exchange rate!
Recipientâs bank fees (also known as beneficiary fees) This is likely the most significant fee that youâll be charged when you send money overseas via bank telegraphic transfers. The recipientâs bank fees are charged to the amount you send by the bank receiving your money. This is often an amount that is not disclosed by the sender bank and is charged at the convenience of the recipient bank.
This means more fees youâll pay, and less money youâll receive on the recipient end!
Whatâs the better alternative to bank telegraphic transfers?
If you're going to send large amounts of money overseas regularly, itâs good to get a clear picture of the different charges, fees, and exchange rates that will affect the final amount on the recipient end.
While thereâs no âbestâ bank out there for telegraphic transfers, why not give BigPay a try?
Here are just a few reasons why we think youâll love BigPay if youâre planning to send money overseas:
1. BigPay charges flat fees versus unknown beneficiary fees
As mentioned, banks charge transfer fees that are in the range of RM 5 to RM 30. BigPay charges this too - and we know it could even be slightly higher than banks. (For example, BigPay charges RM15 to transfer to Australia vs Maybankâs RM10)
But hereâs the catch - with banks, you can rarely be sure of the beneficiary fees youâll be charged at the end. If youâve sent money overseas before, youâll know that itâs definitely much higher than the RM5 difference above!
BigPay does not charge beneficiary fees. Youâll be guaranteed the peace of mind of flat and transparent fees. This simply means youâll definitely pay less in charges, and send more to your recipient!
2. Sending money with BigPay is an easy, intuitive experience
Since day one at BigPay, we believe that transferring money internationally should be as easy as sending money to a friend after a meal.
However, many banks out there are yet to offer mobile-first international transfers. Take Maybankâs Foreign Telegraphic Transfer for example - itâs only available via Maybank2u on a web browser. That means for every transfer, youâll have to:
Access a web browser via mobile or desktop
Visit the Maybank2u website
Key in your user ID, wait, then key in your password
Navigate to Maybankâs Foreign Telegraphic Transfer
Instead, with BigPay, your international transfers can be easily done on a mobile app in a few simple steps within a matter of minutes!
3. You can save money with one of the best rates in town
Many remittances or international money transfer service providers out there will often tout low rates or even the lowest-in-market rates to get you to send money with them.
However, more often than not, itâll be a mid-market rate with a hidden, hefty fee applied on top of the total amount. This adds up significantly if youâre sending money regularly.
At BigPay, there are no hidden fees applied to our international bank transfer exchange rates. Itâll be a fixed fee regardless of how much you decide to send. Transparency is the name of our game!
Youâll often find BigPayâs rates competitively priced or best in the market, and we deliver your money to Singapore, India, or China in as fast as 5 minutes!
Thatâs why youâll often find that sending money with BigPay is cheaper or just as competitive in terms of rates with many of the big banksâ telegraphic transfers out there.
In fact, we update our exchange rates daily at 11 AM on Mondays to Fridays. Simply join our Telegram group here to get daily updates!
4. Your money is in safe hands with BigPay You can be 100% assured that your money is totally safe and secured when youâre using BigPay.
Here are some rock-solid reasons why:
BigPay is regulated by Bank Negara Malaysia (BNM) as well as the Monetary Authority of Singapore (MAS)
BigPay is part of the AirAsia Group of companies, and weâre just as trusted by the public as our iconic airline family
A BigPay account and card is free to get and free to keep, with no annual or monthly fees charged
The initial required top-up (RM20 or SGD $20) isnât a fee: you can spend it after getting your card
BigPay International Bank Transfers: cheaper, faster, better than bank telegraphic transfers
If youâre looking for an alternative way to send money overseas while enjoying less charges and more convenience, we believe BigPay is the way to go.
Whether itâs for a one-time basis or periodically sending money, try BigPay. We think youâll love it!
On this page
What exactly is a bank foreign telegraphic transfer?
Bank telegraphic transfers are known for charging fees
Whatâs the better alternative to bank telegraphic transfers?
1. BigPay charges flat fees versus unknown beneficiary fees
2. Sending money with BigPay is an easy, intuitive experience
3. You can save money with one of the best rates in town
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Written by
Iâm Sabrina, a versatile writer with 7+ years of experience and Iâve been published by household names such as Tatler, Harperâs Bazaar, Mindvalley, and Cosme Japan.
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