What is a banker's draft? How guaranteed bank payments work
By SendPay Business · · 2 min read
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- 2Choose what it does
- 3Launch when you are ready
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.
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.
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.
How it works
Money on its way- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
Why sign up
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- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
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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
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Spotted a mistake or something out of date?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.