Bank Draft
A bank draft is used as a type of check which is more reliable than a personal check as it is backed by the bank itself on behalf of the payer.
Bank draft. A bank draft also called a bank check is a method of payment that involves a document issued by a bank guaranteeing that the amount stated on the certificate will be paid to the recipient of the document. You must keep a record of proper authorization from your customers or clients. Bank drafts often called check draft that is remotely created checks by the merchant and it is an order of payment authorized by the customer.
Hence it ensures that the person. A bank draft and a money order are both prepaid with a specified amount printed on the instrument itself. Bank draft will not have a signature of the customer like regular checks.
Similar to a cashier s check a legitimate bank draft is safer than a personal check when accepting large payments. To get a banker s draft a bank customer must have funds or cash available. A bank draft is a check that is drawn on a bank s funds and guaranteed by the bank that issues it.