The jewelry market size in the U.S. is growing with an expected CAGR of 4.1% from 2024 to 2030. With the high value of goods involved, the jewelry business is prone to a high risk of fraud. Therefore, these businesses need a secure and guaranteed mode of payment. Most jewelry businesses rely on a bank draft or check draft for security and reliability for B2B transactions. In this blog, let us see how you can create bank drafts using the cloud-based platform. We will also see how it enhances B2B transactions for a jewelry business.
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What is a Bank Draft?
Bank drafts are paper documents, just like traditional checks. It is also called demand drafts, check drafts, or remote-created checks. A check draft is actually a legal copy of a check, and it is created by the merchant and authorized by the account holder. Unlike regular checks, a check draft does not require a signature. However, the account holder must authorize the merchant to create a check draft and authorization is indicated in the signature field.
However, creating bank drafts manually can be time-consuming and prone to mistakes for jewerly businesses when handling multiple transactions. You may need to visit your financial institution, fill out forms, and track the issuance and status of each check draft manually. Any incorrect information, like mistakes in the payee’s name, amount, or any other details, can lead to draft rejection or delays.
Create Check Drafts with the Cloud-Based Platform
With OnlineCheckWriter.com – Powered by Zil Money, jewelry businesses can manage check drafts easily. The platform allows you to create check drafts by obtaining permission from the account holder. You can utilize the platform to receive one-time as well as recurring payments with low transaction and gateway fees. By utilizing the platform, you can eliminate the hassles of visiting a financial institution to create a check draft and tracking it manually. All you need to do is:
- Click on the ‘Receivables’ on the side panel of the platform.
- Then, from the drop-down, click on the ‘Check Draft,’ and you will be taken to the Check Draft page.
- From the Check Draft page, click on ‘New’ to create a new check draft. Then, you may add all the relevant information to the fields, and once completed, click the save button.
- After saving the Check Draft, you will be directed to the Check Draft list page. Here, you can see all the check drafts you created.
- You may print, delete, or set up recurring check drafts with the platform. Also, you may send a check draft as a direct deposit.
- If you do not want to create, you may import check drafts from an Excel or CSV file.
Thus, the online check printing platform makes creating check drafts easy with a few clicks.
Advantages of Using Check Drafts for Your Jewelry Business
- In the jewelry industry, B2B transactions are often large. This is because jewelry-making involves purchasing raw materials like diamonds, gold, or any other precious jewels. Selling this jewelry to wholesalers or retailers also involves large transactions. Therefore, a transaction method that provides protection to both seller and buyer is needed. Using a check draft can guarantee funds for these large transactions, and there is no chance that the check could bounce. This can ensure that the seller receives the full amount.
- The risk of fraud is usually high in the jewelry business due to the high value of goods. Therefore, a secure payment method is needed to avoid possible fraud or scams. Utilizing a check draft is more secure than using traditional checks, as funds are already guaranteed by the issuing financial institution.
- Check drafts can help jewelry wholesalers and manufacturers who rely on steady cash flow to access funds quickly. It can also help build trust in business relationships as it ensures timely and secure payments.
Accept Check Draft by Phone
With OnlineCheckWriter.com – Powered by Zil Money, you may accept your client’s check draft over the phone. All you need to do is enter your client’s information into the software and print the check on behalf of them. For this, you will need their authorization, and no signature is required. However, it will have a statement like ‘No signature required and approved by the depositor’. You may deposit this check to the financial institution like a regular check. Also, you may use the platform to send your client a link to their phone or email. With this link, they may fill out their bank information and sign it.
Bank Draft vs Check
When you utilize a bank draft, it offers more security than a check. This is because checks usually depend on the payer, and if his/her account has insufficient funds, the check will bounce. However, when utilizing a bank draft, it is guaranteed by the issuing financial institution. This makes them less likely to bounce. Unlike checks, the payee can be confident that the payment will clear as the financial institution has already debited the draft amount.
The Conclusion
Jewelry businesses can rely on a bank draft to secure large transactions. B2B transactions via check drafts offer a guaranteed payment and also reduce fraud risk. You can easily create and manage them using OnlineCheckWriter.com – Powered by Zil Money for smooth and reliable business operations.
