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A bank draft is a form of payment similar to a cheque. You can get a bank draft at one of your financial institutions branches. If you have a digital bank, you can usually get a draft online or over the phone. When you get a bank draft, the funds are immediately withdrawn from your financial institution.
Fees vary for each bank and payment method. Bank draft fees generally range between $9.50 and $9.95. Certified cheques can cost up to $20, depending on whether theyre requested by an account holder with the issuing bank. Money orders are the cheapest option, with fees starting at $7.50.
Bank drafts may be required by a seller when they have no relationship with a buyer, when a transaction involves a large sum, or if the seller believes collecting payment may be difficult.
Heres a step-by-step explanation of how this process works. The customer requests a bank draft. A customer initiates the process by requesting a bank draft from their bank, credit union, or other financial institution. The bank withdraws money from the customers bank account. The bank issues a draft.
Once you go to your financial institution and request a bank draft, you can get it the same day.
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People also ask

Often, to begin the process, the bank account holder must provide the third party or payee with a voided check along with a signed formal authorization form. The payee then presents the authorized request to the bank or financial institution. It may take several weeks before the first automatic bank draft is completed.
Q. What is Automatic Bank Draft? A. Automatic Bank Draft is a service that allows you to automatically pay your monthly water bill using your checking account, but without writing checks.
Go to the bank and request a demand draft application form. Fill in the required details on the demand draft form, including the payees name, amount, and other relevant information. Deposit the amount that should be sent through the demand draft to ensure you have sufficient funds.

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