Although the term is historic and the technology it describes is no longer in use, the telegraphic transfer name is still used today in several countries where it has become synonymous with an international SWIFT transfer.
[1] This was later replaced by a message directly between banks via a telex network and then later by electronic funds transfer.
Unlike its use in other countries, in Japan, "telegraphic transfer" has become the industry term for quoting retail exchange rates (larger quantities are quoted individually), and is divided into three rates, stated in yen, from the point of view of the quoting bank:[2][3] The middle rate is the average of the buying and selling rate, and these trade at a fixed bid–offer spread (in yen).
For example, the USD is quoted with a spread of 2 JPY, so if the mid-market rate is 100 JPY = US$1, the rates are as follows: These rates are published daily by major Japanese banks, and used for accounting and tax calculations, in addition to retail use.
[5] The term is also sometimes incorrectly used to describe other electronic funds transfer methods such as low cost everyday payment methods such as BACS (Bankers' Automated Clearing Services) payments, Faster Payments Service and SEPA credit transfers.