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What are foreign bank drafts?

By Bidvest Bank
14-06-2011
When travelling abroad or wanting to send funds to dependants or service providers in a foreign country, there are specific devices that can be utilised to ensure the quick, safe and reliable transfer of funds. A bank draft is one of these tools. This foreign money transfer method is a good way to safely facilitate a foreign exchange payment.

Bidvest Bank offers customers the chance to facilitate payments through an international bank draft in most major currencies; this can then be used to make payments abroad. Most banks accept foreign bank drafts in lieu of cash or a direct withdrawal from your bank account. It’s possible to arrange a draft telephonically, but the actual draft needs to be finalised by being physically collected at a Bidvest Bank branch.

One of the most advantageous aspects of using an international bank draft is that it is guaranteed by the originating bank from which it is purchased, thereby making it one of the safest ways to facilitate a foreign money transfer. However, as the draft needs to be mailed or couriered to the intended destination, this method can take anywhere from a few days to a few weeks to reach its recipient. Contact Bidvest Bank today and receive more information about our foreign money transfer services.

Why use an international bank draft?

Foreign bank drafts can be used to facilitate the payment of international suppliers, as well as people who have dependants abroad such as children studying internationally. Sending an international bank draft is far safer than sending the actual currency and enables the receiver to access the money faster than if a draft or cheque was issued in the currency of the person who sent the funds.

When compared to a wire transfer, foreign bank drafts are more affordable and require less information on hand (such as the routing transit number). Below are some of the benefits of using international bank drafts:

They are accepted in most countries. On arrival, it doesn’t require additional currency conversion as it’s already in the recipient’s currency. Almost all currencies are available upon request.
Foreign bank drafts are referred to by a number of different names: cashier's cheque, bank cheque, official cheque, teller's cheque and treasurer's cheque. These are a variety of names that all refer to a bank-guaranteed cheque. Each international bank draft is produced with enhanced security features that decrease the chance of counterfeit items being produced. These safety aspects include:

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Bidvest Bank offers customers guidance on which foreign money transfer methods are the most suitable for their international payment requirements. Contact us to discuss the viability of foreign bank drafts for abroad payments.