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Bank drafts are a method of payment similar to a traditional cheque but with some distinct differences drafts are most commonly used for large payments this is because in most circumstances the payment is guaranteed to a greater extent than with a personal check the main purpose of bank drafts is to offer a blend of the convenience of cash with a level of security even greater than with a personal check this is reflected in a common alternative name for bank drafts cashiers checks the main technical difference between a cashiers check into personal cheque is that the bank draft is drawn on the bank itself rather than an individuals account the bank draft is more commonly used for large payments to individuals than to companies this is because companies will normally have facilities for receiving either electronic transfers or card payments there are several physical characteristics that distinguish bank drafts from cheques and similar documents the name of the person using the bank
