The BBA is the voice of the banking industry for all banks who operate within the uk
Understanding a bank draft
08/01/2007
Why might I need a bank draft?
If you intend to make a large purchase such as a car, the seller may ask for the purchase price to be paid by bank draft. This can be useful because the person to whom it is made out has the advantage of knowing that it will almost certainly be paid.
Provided the draft is genuine and has not been lost or stolen, payment will be guaranteed (if it is fraudulent or conterfeit it will not be paid). This is important if you are selling valuable goods or exchanging valuable documents e.g. cars or houses.
Payment of a personal cheque can only be guaranteed up to the amount of the cheque guarantee card.
What is a bank draft?
It may look, at first glance, like a cheque but it is drawn on a banks head office. Be aware that:
Related Links
Understanding the cheque clearing times
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