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What is a banker's draft? How guaranteed bank payments work

By SendPay Business · · 2 min read

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A banker's draft is a cheque that a bank writes on its own funds instead of on a customer's account. Because the bank has already taken the money, the person receiving it can be confident it will not bounce. In the US, a similar document is called a cashier's check.

How it works

  • You ask your bank for a draft for a set amount, made out to the person you are paying.
  • The bank takes the money from your account straight away.
  • It issues the draft, drawn on the bank's own funds.
  • The receiver pays it into their account like a cheque.
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When people still use them

Banker's drafts were common for large purchases such as cars and deposits on property, where the seller wanted a guaranteed payment. Today, many of these payments are made by instant bank transfer instead, which is faster and removes the risk of a forged draft.

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Watch out for fake drafts

Forged drafts are a known scam: a buyer overpays with a fake draft and asks for the difference back. The draft only counts as paid once the money has cleared, so it is worth checking with the issuing bank directly.

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Where SendPay fits

SendPay does not issue cheques or drafts. A SendPay platform gives your customers accounts, instant transfers where available, cards and payment links, powered by licensed partners.

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How it works

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  2. Tap send and it is on its way
  3. It lands in their account

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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

Questions people ask

What is Faster Payments?

How UK bank transfers arrive within seconds.

Faster Payments →
What is CHAPS?

The UK's same-day system for high-value payments.

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Can I launch my own money app?

Yes, with a branded platform powered by licensed partners.

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Spotted a mistake or something out of date? and we'll fix it. How our guides are made

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.