Send the equivalent of RM1,000 to an overseas supplier and the total charges can reach RM150 or more. The cost builds up at four points: a SWIFT or cable fee from your own bank, charges from agent and intermediary banks along the way, an exchange rate margin built into the rate you are quoted, and a lifting charge when the money arrives.
Every one of these charges can be reduced. Combining payment runs, holding foreign currency, negotiating with your bank, collecting through a payment gateway and using DuitNow for domestic transfers all bring the total down, and the sections below explain each one.
Key Takeaways
- Telegraphic Transfers Involve Multiple Charges: A telegraphic transfer carries four separate charges: a sending fee, agent and intermediary bank charges, an exchange rate margin, and a lifting charge at the receiving bank.
- Online Transfers Usually Cost Less: Sending a transfer through online banking usually costs less than completing the transaction over the counter at a bank branch.
- Flat Fees Affect Smaller Transfers More: Most telegraphic transfer charges are flat fees, so they take up a much larger share of a small payment than a large one.
- There Are Ways to Reduce Transfer Costs: Combining several payments into one transfer, holding foreign currency, and negotiating with your bank can all lower the total cost of sending money overseas.
- DuitNow Is a Better Option for Domestic Payments: DuitNow transfers are free for consumers and SMEs up to RM5,000 per transaction, so payments within Malaysia never need to travel through the SWIFT network.
Why Telegraphic Transfer Fees Hit Small Businesses Hardest
Telegraphic transfer fees for businesses are mostly flat charges, which means the fee stays the same whether you send RM1,000 or RM100,000. On a small payment, those fixed charges take up a far larger share of the amount being sent, which is why SMEs feel them more sharply than large corporates do.
Scale matters in a second way too. Banks reserve their better exchange rates for larger transfers; Maybank’s preferential online rate, for example, only applies from RM10,000 per transaction. A business paying overseas freelancers or software vendors in smaller amounts pays the standard rate and the full set of fees on every transfer.
The Four Cost Layers Inside Every Telegraphic Transfer
A telegraphic transfer builds up hidden costs at four points along its journey, and often only the first one appears clearly on your confirmation slip.
1. The SWIFT or Cable Fee
This is the fee your own bank charges for sending the payment instruction. Maybank, for example, charges RM10 for a foreign telegraphic transfer made through online banking and RM30 over the counter for most destinations. It is the most visible of the four charges and usually the smallest.
2. Agent and Intermediary Bank Charges
An international payment often passes through one or more banks on its way to the recipient, and each of them can take a fee. When you set up the transfer, you choose who pays these charges: you, the recipient, or both sides sharing them. Banks label these options OUR, SHA and BEN. Covering everything yourself costs more upfront; Maybank charges around RM120 on a US dollar transfer to guarantee the recipient receives the full amount. Letting the charges come out along the way is cheaper for you, but it means your supplier receives less than the invoice states.
3. The Exchange Rate Margin
The rate your bank quotes usually includes a margin above the rate banks use between themselves, and that margin never appears as a separate line on your receipt. The margin differs from bank to bank, so compare the quoted rate against the mid-market rate before confirming a transfer.
4. The Lifting Charge on Arrival
At the end of the journey, the receiving bank charges a handling fee, often called a lifting charge, before the money lands in the account. OCBC Malaysia, for instance, applies a RM10 service charge on every inward telegraphic transfer. The same thing happens in reverse: when an overseas client pays you by TT, your own bank takes its handling fee before you see the funds.
Practical Ways on How to Reduce Telegraphic Transfer Fees
Each of the four charges has a practical answer, and the first two are within your own control.
- Combine your payment runs. Sending fees apply to each transaction rather than to the amount, so several separate transfers mean paying the same fee several times over. Grouping supplier payments into a weekly or fortnightly run cuts the number of transfers, and the saving repeats monthly. Just check the new schedule still fits your suppliers’ credit terms.
- Hold foreign currency where it makes sense. If you receive US dollars from clients and also pay US dollar suppliers, converting that money into ringgit and back again means paying the exchange margin twice. A foreign currency account lets you keep the dollars and pay from the same balance. Maybank’s Master Foreign Currency Account, for example, supports 16 currencies with no extra conversion step. The trade-off is that the balance moves with the exchange rate, so this suits businesses whose foreign income and spending roughly match.
- Negotiate, and go online first. The easiest saving requires no negotiation at all, because the same transfer usually costs less through online banking than at a branch counter. Beyond that, ask your bank about better exchange rates and fee waivers once your monthly volume grows. Banks publish these thresholds, giving you a clear figure to work towards.
- Collect through a payment gateway instead of inbound TTs. When a client pays you by TT, the receiving-side charges above come out of the money before it reaches you. A gateway checkout works differently: the fee is one published rate per transaction, agreed before any money moves. Checkouts that accept international cards also give overseas clients a way to pay that avoids SWIFT altogether.
- Use DuitNow or FPX for domestic payments. Money moving within Malaysia does not need to pass through correspondent banks at all. DuitNow transfers are free for consumers and SMEs up to RM5,000 per transaction, and businesses can send up to RM10 million in a single transfer. For customer collections, FPX takes payment directly from the buyer’s bank account at checkout, with no exchange margin or lifting charge involved.
What a RM1,000 Transfer Really Costs
Here is a simple comparison for a RM1,000 payment to a US supplier, where the sender covers all charges so the supplier receives the full amount.
| Cost layer | Typical charge |
| Bank sending fee | RM10 online or RM30 at a branch |
| Agent and intermediary bank charges | Around RM120 |
| Exchange rate margin | Built into the quoted rate, varies by bank |
| Total | Often RM140 to RM160 |
These figures come from the banks’ published fee schedules, and the exact total depends on the bank, the currency and the route the payment takes. On a RM1,000 transfer, that adds roughly another 15% on top of the payment itself.
The alternatives look very different. The same RM1,000 moved within Malaysia by DuitNow costs an SME nothing, while collecting it from a customer through Razorpay Curlec’s checkout comes to RM15 by FPX or RM30 by international card under standard pricing. For most SMEs, how to reduce telegraphic transfer fees starts with matching each payment to the right channel, and that is where the biggest saving sits.
Keep More of Every Ringgit You Move
Most of the cost in a telegraphic transfer comes from charges that can be questioned and avoided once you know where to look. Small changes to how and when payments are sent add up to a real saving over a year.
At Razorpay Curlec, we handle the collection side of that equation. Our payment gateway accepts FPX, cards, including international cards, and leading e-wallets at rates published upfront, while payment links, subscriptions and invoices cover recurring and one-off billing. Razorpay Curlec is regulated by Bank Negara Malaysia and is a PayNet member, the network behind FPX and DuitNow.
Explore Razorpay Curlec today and see how simple getting paid can be.
Frequently Asked Questions About Telegraphic Transfer Fees
What is a lifting charge on a telegraphic transfer?
A: A lifting charge is the receiving bank’s handling fee for processing an incoming telegraphic transfer. OCBC Malaysia, for example, charges a RM10 service fee on every inward TT. Because it is charged when the money arrives, the amount you end up with can be slightly less than the amount sent.
Who pays the intermediary bank fees on a telegraphic transfer?
A: It depends on the charging option chosen when the transfer is set up. OUR means the sender covers all charges, SHA shares them between both parties, and BEN passes everything to the recipient. Under SHA or BEN, intermediary banks deduct their fees from the transferred amount before it arrives.
Is it cheaper to send a telegraphic transfer online or at a branch?
A: Online is usually cheaper. Maybank, for instance, charges RM10 for a foreign telegraphic transfer made through online banking compared with RM30 over the counter for most destinations. The payment travels on the same SWIFT network either way.
Can DuitNow replace a telegraphic transfer for domestic payments?
A: Yes, for ringgit payments within Malaysia. DuitNow transfers are free for consumers and SMEs up to RM5,000 per transaction, and businesses can send up to RM10 million in a single transfer. A telegraphic transfer is generally only needed when money crosses borders.
