What is a Bank Draft?

A bank draft refers to a bank-guarantee’s payment issued on a payer’s behalf. A draft guarantees the payee a secure and trusted payment method. A check is created by the bank to the payee drawn on the account of the bank. The payer’s name or remitter is stated on the check, however, the bank is the body making the payment. A bank draft is synonymous to a cashier’s check in terms of its functions.