How to make a telegraphic transfer (international payment) from New Zealand.

Need to send money overseas from New Zealand? You might hear the term "Telegraphic Transfer" (TT), which is typically just another name for an International Money Transfer (IMT), international wire transfer, or SWIFT payment made through a bank. While it's a common way to send funds abroad, it's important to understand the process, potential costs, and modern alternatives to ensure your money arrives safely and cost-effectively.

This guide will walk you through making an international payment from New Zealand and introduce options like Wise that could save you money.

Understanding the Costs of Sending Money Internationally from NZ

Before making a transfer, be aware of the potential costs involved:

1. Transfer Fee: Most providers usually charge an upfront fee for initiating an international money transfer. This fee can vary depending on whether you set it up online, via an app, or in a branch (branch services often cost more).
2. Exchange Rate Markup: This is often a hidden cost. Most providers typically don't use the mid-market rate (the rate you see on Google) for currency conversion. They may apply their own, less favourable rate, adding a margin or markup. The difference between their rate and the mid-market rate is an extra cost for you.
3. Intermediary and Receiving Provider Fees (SWIFT Fees): With international wire transfers, your money might pass through 1-3 intermediary providers before reaching the recipient's account. Each of these may deduct their own fees directly from the amount being sent. This means the recipient gets less than you initially intended.

Depending on the method and provider you choose, an international telegraphic transfer can be significantly more expensive than just the initial fee suggests, due to the combined effect of the upfront fee, exchange rate markup, and potential SWIFT fees.

How to make a telegraphic transfer from New Zealand

The exact steps vary between providers (like BNZ, ASB, ANZ, Westpac, etc.), but here’s a general guide:

1. Check Your Options: See if your provider allows international transfers online, via their mobile app, over the phone, or only in-branch. Online/app transfers are often cheaper than branch services.
2. Gather Recipient Information: You'll need the recipient's:
   • Full name and address
   • Account number or IBAN (International Bank Account Number, essential for Europe and many other regions)
   • Provider name and address
   • SWIFT/BIC code (Bank Identifier Code) of the recipient's provider. You can often find this online or ask the recipient.
3. Gather Your Information: Have your own account details ready.
4. Initiate the Transfer: Log in to your online website/app or visit your branch. Navigate to the international payments or telegraphic transfer section.
5. Enter Details: Input the recipient's information, the amount you want to send, and the currency.
6. Review Fees and Exchange Rate: Crucially, check the total cost. Look at the upfront fee and the exchange rate the provider is offering. Compare the rate to the current mid-market rate you would usually see on Google. Ask if intermediary fees are likely.
7. Confirm and Send: If you understand and accept the costs and estimated arrival time, confirm the transfer. Keep a record of the transaction reference.

Here is a comparison of top providers offering international money transfers from New Zealand:

Meet Wise: A convenient alternative for international money transfers from New Zealand

As an alternative to navigating provider fees and marked-up rates, we invite you to consider Wise for your international transfers from New Zealand.

Send Money with Wise 🚀

• Save Money: Wise uses the mid-market exchange rate and charges a low, upfront fee for the complete transfer: eliminating the need to guess any intermediary provider charges.
• Transparent: You see the exact fee and the amount the recipient will get before you commit to the transfer.
• Manage Multiple Currencies: Resident of supported countries can open a Wise Account to hold and manage money in 40+ currencies (including NZD). Plus you get local account details (like IBAN, UK sort code, US routing number) to conveniently receive money from abroad as well.
• Spend Abroad: You can optionally order the the Wise card to spend in foreign currencies at the same mid-market rates with low conversion fees.

Making a "telegraphic transfer" or international payment from New Zealand involves understanding the potential costs beyond just the initial transfer fee. Exchange rate markups and intermediary SWIFT charges can significantly reduce the amount your recipient gets. Always compare the total cost – including the exchange rate – before sending money.