What is the point of a Banker's Draft?

[Moscow Mule]

private sale. Puts all the settlement risk onto me though which is what I'm not happy about. Perhaps I should have done cash but here was me thinking a bankers draft was as good as...

If the address on the log book is the same as the place where you've meet him and examined the vehicle, I would say there's only a slim chance of him doing a runner.

Get a signed receipt from him for the draft before you leave it with him.

[SantaClaus]

"What is the point of a Banker's Draft? "

Its what you get when you leave the door open at Leahman Brothers...


...oh forget it

[Cyberman]

"What is the point of a Banker's Draft? "

Its what you get when you leave the door open at Leahman Brothers...


...oh forget it

[Bagpuss]

When I last looked into it a bankers draft only guarantees the funds were in the account at the time it was drawn up. It is not as good as cash nor does the bank have to honour it.

[BrianSnail]

My friend the wiki says...

...when an individual requests a banker's draft they must immediately transfer the amount of the draft (plus any applicable fees and charges) from their own account to the bank's account. (An individual without an account at the issuing bank may request a banker's draft and pay for it in cash, subject to applicable anti-money laundering law and the bank's issuing policies.) Because the funds of a banker's draft have already been transferred they are proven to be available; unless the draft is a forgery or the bank issuing the draft goes out of business before the draft is deposited and cleared, the draft will be honoured. Like other types of cheques, a draft must still be cleared and so it will take several days for the funds to become available in the payee's account.

[Bagpuss]

I think wiki isn't quite right as usual...
Some banks will also allow you to stop them. They are effectively a cheque with a little bit more certainty. I'd never release anything until the money had cleared as fraudsters love them

[BrianSnail]

I think wiki isn't quite right as usual...
Some banks will also allow you to stop them. They are effectively a cheque with a little bit more certainty. I'd never release anything until the money had cleared as fraudsters love them

Please refer to my earlier masterplan.

[Bagpuss]

I remember selling a car a few years ago and the guy wanted to pay by a draft. I asked him to go with me to the bank, so we could check it was valid, to which he replied it was "as good as cash" but he would do it. At the bank the teller confirmed that it was genuine but also conformed it was not as good as cash as it could be stopped and only guarenteed the funds were available when it was drawn up, it could have been emptied since, or could be cancelled. Things may have changed in recent years then but I doubt it.

[Cyberman]

When I last looked into it a bankers draft only guarantees the funds were in the account at the time it was drawn up. It is not as good as cash nor does the bank have to honour it.

You're obviously not an AIB graduate.

Bankers Drafts cannot be dishonoured unless forged and thus are as good as cash !!

[NetwkSupport]

You can actually give someone a bankers draft, then cancel it at your bank so its pointless might aswell give someone a chq. I'd never accept a bankers draft from someone, or at least would wait till cleared funds until giving any good over...