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Electronic Payment Processing

Bank Drafts

by Staff Writer

Bank drafts are pre-authorized checks that do not require the check writer's signature. A customer is able to give his or her banking information over the phone, over the Internet, or via email. The merchant then processes the check and deposits it in the company bank account.

Bank Drafts Are Convenient

Bank drafts are convenient for both the customer and the company. There is no need to wait for a check to be sent via the postal service. Those who do not have credit cards or debit cards can easily pay for items online that they otherwise could not purchase.

In addition to making purchases, bank drafts can also be used to pay recurring bills. Customers can give the merchant permission to draft a check in their name on a regular basis. It is convenient for the customer who has limited tools for paying.

Unfortunately, bank drafts can also be used fraudulently. The very thing that makes them easy and convenient, the lack of signature required, is the thing that makes them ripe for fraud. You can avoid this by choosing an online payment solutions program that provides real-time checking account verification services. This will ensure that the customer has funds in the account and that you will be paid for your product or service.

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