Introduction

A bank draft is an instrument issued by the issuing bank, unconditionally paying the payee or bearer according to the actual settlement amount. The issuing bank of the bank draft is the payer of the bank draft.

Bank drafts come in four copies: the first is a card, one draft is used for voucher payment transfer; the second is the bank draft; the third is the payer. After conversion, this page will serve as the voucher payment for the banks current account. After the repurchasing bank signs and repurchases at the national level, it will issue the third page of the issuance letter. The tax return will be used by the publisher as the voucher for balance income. The fourth page is the payment notice, issued after bank clearance and forwarded to the remitter.

Bank drafts can be used for various currency payments by organizations and individuals. Bank checks can be used for transfers, and those marked with Cash can also be used for cash withdrawals. If the applicant or payee is a legal entity, the bank draft will not bear the Cash designation.

Characteristics

Compared with other bank settlement methods, bank draft settlements have the following characteristics:

Wide Application

Bank drafts are currently a widely used method for remote payments. This calculation method is suitable not only for units, individual businesses, and individuals with bank accounts but also for individual businesses and individuals without bank accounts. All units, individual businesses, and individuals engaged in cross-regional trade of goods, provision of labor services, and other economic activities, as well as payment of bills and debts, can use bank drafts. Bank checks can be used for wire transfers and cash withdrawals.

Follow the Person, Clear Payment and Goods.

Through bank transfer payments, buyers will make payments and transfer tickets to their bank accounts. Buyers can use the ticket to purchase goods, while sellers can confirm invoices, ship goods, arrange direct shipments, or secondary shipments. Banks can confirm payments, reduce payment links, and shorten payment processing times, thereby facilitating sales and purchases.

High Credibility, Safe and Reliable

Bank checks are popular as payment instruments issued by banks after receiving funds from payers. Banks also establish strict processing procedures and preventive measures to ensure that payers and banks comply with account clearing rules for secure transfers. If a bank draft is lost and is a genuine note, the payer can report the loss to the bank to identify the payees unit or individual, preventing others from receiving counterfeit notes.

Flexible Use, High Adaptability

For virtual bank settlements, the owner can endorse and transfer the draft to the selling unit, as well as withdraw funds in batches or transfer via the bank. You can also perform credit transfers, full remittances, and reapply for projects. This facilitates the adjustment of purchased goods and flexible procurement of materials in the market.

Accurate Calculation, Automatic Balance Refund.

Buyers often find it difficult to accurately determine specific purchase amounts, leading to overpayment or underpayment. In some cases, excess funds remain unpaid for long periods, causing inconvenience and losses to buyers. With bank draft payments, if the unit is the bank draft and the remittance amount is within the drafts limit, payment can be made based on the actual purchase amount, with the excess automatically refunded by the bank. This effectively prevents underpayment in transactions.