Bank Drafts often called check draft that is remotely created checks by the merchant, and it is an order of payment authorized by the customer. Bank draft will not have a signature of the customer like regular checks. You must keep a record of proper authorization from your customers or clients.

The customer authorizes it using a telephone, fax, or the Internet by providing the required information, including the routing number and bank account number from a valid bank account owned by the customer. Bank draft does not carry the signatures of the customer like regular checks. It has a statement “Authorized by Drawer.”

Remotely created checks by the merchant; this type of payment instrument used by credit card companies, utility companies, insurance companies, landlords and apartment complexes or telemarketers. Some government entities also use to collect property taxes. This method gives a quicker and remote payment with no cost to both parties.

Many Industries still don’t know about the remotely created checks and get paid the full face value of the checks without having to pay any transaction fees or gateway fees like credit cards or ACH. Check draft is for a one-time payment, open or recurring. Check draft is an excellent way to get paid for anyone like attorneys, accountants, association, service providers, and even 501c charitable companies.

There is a specific guideline to approve you for creating remote checks of your customers.

Remotely created checks / Check draft / Bank Draft / Demand Draft is vulnerable to fraud. It is frequently used to purchase items over the phone, and customers can also pay monthly bills by having them debited automatically out of their accounts. Drafts entail a significant potential for fraud.

Check drafting is a valid legal copy of the customer’s check on their behalf and often created remotely without requiring a signature on it. Check Draft is usually for deposit only. Online Check Writer will do everything possible to prevent fraud activities. You must fill up the application form and do all the procedures before we approve for check draft. It usually takes one to two business days to approve.