bank draft

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bank draft (Mokėjimo ir atsiskaitymo sistemos) - in Europe, the term generally refers to a draft drawn by a bank on itself. The draft is purchased by the payer and sent to the payee, who presents it to his bank for payment. That bank presents it to the payer’s bank for reimbursement. In the United States, the term generally refers to a draft or cheque drawn by a bank on itself or on funds deposited with another bank. In the case of a cashier’s cheque, the bank is both the drawer and drawee. In the case of a teller’s cheque, one bank is the drawer and a second bank is the drawee. Bank drafts may be written by a bank for its own purposes or may be purchased by a customer and sent to a payee to discharge an obligation. See also draft.

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  1. A glossary of terms used in payments and settlement systems March 2003 ISBN 92-9197-133-2 (online)
  2. Payment systems in the Group of Ten countries December 1993 ISBN 92-9197-646-6 (online)
  3. Lietuvos banko svetainė