Bank Draft

A bank draft is usually given when a creditor or seller or the service provider is not willing to accept an ordinary check, then it's the way, to ensure confirm payment of the debtor. In this scenario of issuing bank draft the bank gets into the picture and ensures full payment to the creditor which also assures the creditor to be confident with his payment

Bank Draft

The general concept of issuing bank draft is promising the lender with guaranteed funds. That's the reason in bigger deals like home purchase deals or car purchase deals companies prefer bank draft. Normal checks have chances of getting bounce as they are dependent on available funds.

Issuing a check not necessarily guarantee payments and that is why creditors prefer to have bank draft where the bank takes the guarantee of payment by segregating the fund from the debtors account and ensures payment whenever the bank draft is produced. These way sellers have confidence on bank draft issued by buyers and they can conduct their business without the fear of losing money.

Deviation in the concept

Though bank draft is guaranteed payment from the buyer but there are various scams which have capacity to challenge the popular belief. The scams are fake cashier check which leads to major fraud activities that shatters common people belief on the bank draft. There are various victims reported of these scams and they are now in huge loss waiting for justice.

However there are online portals that help to identify fraud cashier check for future referral. These are ways which are helpful to protect yourself from these fraudulent activities. Researching on net you will also find resources giving information on ways to verify funds. These are important steps to be marked before accepting a cashier check as payment received. Cashier check are still guaranteed payment but with proper precaution.

Some business houses, to save themselves from these frauds use automatic payments. Other than writing bulk checks every month or issuing bulk draft they prefer automated transfer payments also known as electronic transfer with the ACH system. This is also a safe way of ensuring guaranteed payments without the requirement of any instrument.

The instruments may be fraud but electronic transfers happens from one bank to another and this way it can never give way to fraudulent activities. The business security is maintained and it ensures timely and fast payment too. Bank draft is still guaranteed but only when you are confident on the instrument that it is not fraudulent. Frauds are increasing day by day crushing the popular concepts of people and thus facilitating no trust mentality among people.