Paper Draft

Written by Staff Writer
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A paper draft is a check that is drawn on a customer's account with their permission. Often, they are used to make regular payments for bills and other services. They have been in use for only a few years but have become quite popular for a variety of reasons.

First, they eliminate the need for the waiting period while a check is sent through the mail. Customers often forget to mail checks or they get lost in the mail. With a paper draft, it is all done over the phone or via e-mail.

What Information is Needed for a Paper Draft?

Customers need to give the merchant information such as the bank account number and routing number. As long as the merchant has verbal or written approval from the customer to withdraw the funds from the checking account, a paper draft is legal and binding. Many customers without credit cards or debit cards love the ease of this kind of payment.

Just as with bank drafts, paper drafts can sometimes be used fraudulently. This can be avoided by choosing an online payment system that allows you to check customers' checking accounts in real-time. With the ease of payment comes the need for more security, but it will be worth it for both you and your customers.

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