Information About the Bank Drafts

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What are Bank Drafts Its Various Uses
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• We all are well aware of each and every detail in
  a bank. We learned about them, we heard about
  them and we saw some of them through our eyes.
• We tend to know every detail that is present in
  and around us, but some of the things that we
  think we know are actually not true and we
  somehow believe that they are true. Little
  knowledge is of course dangerous.
• And since we are talking about banks, we must
  also know about the bank drafts. Here, we shall
  discuss about the bank drafts, it various uses
  and other important things as well.

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But before we begin, we must know what a bank
draft is. Well, a bank draft is a payment that is
given on behalf of a payer that is being
guaranteed by the issuing bank. The draft
actually ensures that the payee is having a
secure form of the payment. Just like a cashiers
check, a bank draft is safer than a personal
check when accepting large payments.
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• And to get a bank draft, a bank customer must
  have his funds or the cash available, and then
  the bank will freeze of keep those funds in the
  banks own account until the payment is complete.
  
• The banks are able to guarantee the bank drafts
  as the customer has already paid the amount.
• There is also a term known as the basic bank
  draft. This is actually a traditional way of bank
  draft and is a form of payment used when the
  safety is given the utmost importance.

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• There are large amounts and sometimes the
  transaction amounts are high, the consequences of
  a bounce or a returned check is very significant.
• It is always a risk to send the expensive goods
  or even a complete amount of deal when there is
  also an uncertainty about a successful payment.
• But a bank draft then becomes the safest option
  to make those high amount payments much more
  likely to go through. However, purchasing bank
  drafts is one of the best ways to invest in
  todays time.

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• The term bank draft can also be referred to as
  automatic electronic payments.
• These are the payments that allow a business or
  even a service provider to transfer their funds
  directly out of the customer checking accounts.
• Hence, instead of writing a check or paying with
  plastic, the customers provide the bank account
  information like the account number, routing
  numbers etc., to the business to set up the draft
  payments electronically.

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