Online Check Writer

What is a Demand Draft?

Jul 20, 2021 | Check Draft powered by Zil Money is a financial technology company, not a bank or an FDIC member. offers banking services through partnership with FDIC member banks Silicon Valley Bank and Texas National Bank.

It is very common that a check is created by a payer or the account holder and will be provided to the payee to withdraw funds. In some cases, in contrast to this, a check will be created by the payee, and the account holder authorizes this check remotely. This type of check is called a Demand Draft or Remotely Created Check (RCC). It is also known as “check by phone”. The banking details such as bank account number and the bank routing number should be provided by the account holder to the payee in order to withdraw funds using a Demand Draft. The process will be the same as depositing a check at the bank.

A Demand Draft will only become legal and valid when it is created after receiving authorization from the account holder. The authorization for creating a Demand Draft can be given by the account holder over a phone, fax, or online. As a Demand Draft is created by the payee and not by the payer, there will be no signature on the check, and in the place of signature; there will be a statement like “no signature required”. Remaining all the endorsements such as banking details and even the amount on the check and the date will be filled by the payee. So, overall, by using Demand Draft or remotely created checks, the payments can be processed quickly and in a secured manner.

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An illustration regarding the usage of Demand Draft or Remotely Created check

An illustration regarding the usage of Demand Draft or Remotely Created check

Demand Draft is usually mainly used by merchants in their everyday business life and this especially holds true for Professionals like insurance companies, utility companies, and apartment owners’ use this method of Demand Draft creation for receiving their funds.

Mr. Patrick is a small business owner and he purchases products from XYZ Inc. worth $2500. That means Mr. Patrick owes XYZ Company a sum of $2500. In this case, being in a remote place Patrick can authorize XYZ Inc. to withdraw $2500 from his account. Getting approval, XYZ Company starts creating a check. For this purpose, the company needs all the banking details of Mr. Patrick such as his bank account number and the bank routing number. These details can be provided to the company by Mr. Patrick over the phone, fax, or online. After receiving these details, the accountant of the company creates a check. It’s important to remember that instead of the signature of Mr. Patrick, in the same area, “no signature required” is written by the company and then gives this check to the bank of Mr. Patrick for collecting the amount. Watching closely, the amount is either collected from the bank or is sent by the bank to the account of XYZ Company. This type of payment is called Demand Draft payments.

How to create Demand Draft or Remotely Created Checks in an easy method

How to create Demand Draft or Remotely Created Checks in an easy method?

While taking a look at the details, Demand Drafts or remotely created checks are also known as checks by phone, check by fax, or eChecks. After the check 21 Act, the popularity of Demand Drafts has increased significantly. It is commonly used by business people as everyday transactions and receipt of cash is very necessary in the case of business. Generally for those who are looking for an easy way of creating Demand Draft or remotely created checks, – Powered by Zil Money provides a secure way. Checks can be created remotely in an inexpensive manner and save 80% on check printing costs. Get permission from the account holder and start creating checks. Buy blank check papers and print checks on them. Blank check papers are inexpensive and are available at any office supply store nearby. Once checks are created, they can be printed on blank check papers using any type of printer. The check can be deposited into the bank account just like any other check. Bank draft created by OnlineCheckWriter does not have any transaction fees or Gateway fees like credit card or ACH. These days, it is the cheapest way to get paid over the phone, faxes, online, or link.

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