If you are willing to make a large purchase, and you do not carry credit cards or cash with you, then a private or public seller may ask you to pay by bank draft. This term is more commonly used in the UK as compared to the US, where it is roughly equivalent to the word cashier’s check. Essentially, a genuine bank draft or cashier’s check is guaranteed up to a certain amount of money.
Guarantee of Payments to seller
When you withdraw funds from your account in order to get a cashier’s check, then you are essentially purchasing the bank draft. Once that you’ve purchased the cashier’s check, or money order, then the money in your account is gone and you can not spent it on other things. This can provide an extra security to the person selling you something, because it can guarantee that your check will not bounce.
ATM or credit card instead of bank draft
As so many people are now banking with ATM cards so the face of the bank draft, cashier’s check or money order is changing. Further, there exist a software that can automatically deduct funds from your bank account.
