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Difference Between Drafts and Checks

Drafts vs Checks

Any industry or business can produce a bank draft. A bank draft is a legitimate copy of a check that is created by the businessman or merchant and authorized by the bank but not created by the account holder. A bank draft does not have an original signature. It is normally signed by an automated machine. It is also based on real credit or savings in the account. Once the draft is produced, your real money is used.

A bank draft can be noted as a “bank’s check.” The money will be paid by the bank so that the account holder can redeem it as a draft. A bank draft is always a confirmed payment therefore it will not bounce. The bank takes the money in advance from the person who issues a draft and in return gives a bank’s check or draft for that amount. Drafts are a more reliable form of receiving payment than personal checks that may bounce. As mentioned, a draft is as good as cash. The bank writes the account holder’s draft and reliably takes out money from the account.

Checks are created by the account holder on funds inside the account or held in acquisition. It should be signed officially by the account holder before releasing. However, banks are allowed to seize back money or funds from a cleared check a week or two soon after if consequent transactions are accounted as fraud or counterfeit.

Checks attribute the name of the issuing bank which normally appears in the upper left-hand or upper center of the check. Furthermore, it includes enhanced security features including color-shifting ink, security watermarks, and thread special bond paper. Checks are well designed to decrease the susceptibility of counterfeit items. Some banks bond out the protection of their checking accounts and checks issued to their account holders. Checks may bounce, and they are also prone to other counterfeit and fraudulent activities.


1.A bank draft is a legal copy of a check that is created by the merchant and then authorized by the bank but not created by the account holder. Checks have a clearing period before the issuance.
2.Drafts are assured and confirmed money. Checks need time (if there are funds) before they can be cleared and approved.
3.Drafts are highly protected by the bank. They also avoid risks in taking out money while checks are prone to fraudulent activities and counterfeiting acts.
4.A bank draft reliably takes out money from the account while checks need authorization by the bank and the account holder.
5.A bank draft does not have a signature; it normally is signed by an automated machine. Checks are signed by the account holder before the release.
6.Drafts are based on real credit and money in the account; once the draft is produced your money is used. Checks are assigned payments; therefore, funds can be insufficient. It can bounce.

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