Telex Charges

Telex Charges refer to fees collected by banks or communication institutions in international trade for sending or receiving messages via telex. Telex was an early electronic communication method, once widely used in interbank operations such as issuing letters of credit, amendments, and payment notifications. With the widespread adoption of the SWIFT system, traditional telex has been largely replaced, but some old terms remain in trade contracts and L/C clauses. Usage scenarios include: banks charging applicants telex fees when issuing letters of credit (now often called SWIFT fees), and buyers and sellers agreeing on the sharing of communication costs. Note: Telex charges are usually borne by the applicant, but may also be agreed in the contract to be borne by the beneficiary; if the L/C terms stipulate that 'telex charges are for the beneficiary's account,' the bank will deduct them from the payment. Unlike 'Postage' and 'Wire Transfer Fee,' telex charges specifically refer to costs arising from telex communication, not mailing or electronic remittance fees. In current practice, telex charges are often used interchangeably with SWIFT fees, but strictly speaking, SWIFT fees are the modern replacement for telex charges. Foreign trade practitioners should clarify the party responsible for the charges to avoid disputes arising from unclear cost allocation.