Payment & Paperwork
How Bank Draft Payment Works
What a bank draft is, why it's safer than cash for a car sale, and how to make sure the one you're handed is real.
Key takeaways
- A bank draft is drawn on the bank's own funds and set aside when it's issued, so a genuine draft won't bounce for insufficient funds the way a personal cheque can.
- Counterfeit drafts do exist, so verify one by checking the issuing bank's name, branch, and security features, then calling the bank directly using a number you look up yourself, not one printed on the draft.
- Be cautious of any draft written for more than the agreed price, overpayment is a classic refund scam, accept only the exact amount.
- A bank draft avoids the risks of carrying large amounts of cash and the wait for an e-transfer to clear, though deposit holds mean the funds may not be instantly spendable.
- DriveOffer pays by bank draft at pickup, so you hold bank-guaranteed funds before the car leaves.
When you're selling something worth thousands of dollars, how you get paid matters as much as the price. A bank draft is the standard, safe way to settle a car sale.
What is a bank draft?
A bank draft is a payment the bank guarantees and pulls from its own funds, not from a personal account that could bounce. Because the money is set aside when the draft is issued, it's far more reliable than a personal cheque and safer to carry than a large amount of cash.
How to make sure a draft is genuine
- Look for the issuing bank's name, branch, and security features
- If you have any doubt, call the issuing bank directly (using a number you look up yourself, not one printed on the draft) to verify it
- Be wary of any draft for more than the agreed price — overpayment is a classic scam
Getting paid by DriveOffer
We pay with a bank draft at the time of pickup, so you're holding guaranteed funds before the car leaves with us. No waiting for an e-transfer to clear and no cash to count.
From our experience: As an Edmonton-based buyer, we handle bank draft payments and Alberta registry paperwork on every pickup, so we know exactly what a legitimate draft from a local branch should look like and how the handoff should go.
Ready to skip the hassle?
Tell us about your car and a DriveOffer specialist will prepare your free offer — no obligation, no haggling.
Frequently asked questions
- Is a bank draft the same as a certified cheque?
- They are similar but not identical. A bank draft is drawn directly on the bank's own funds, while a certified cheque is a personal cheque the bank has verified and earmarked from the account holder's account. Both are more secure than an ordinary personal cheque, but a draft does not depend on the buyer's account staying funded.
- Do I need to deposit a bank draft, and how long until I can use the funds?
- Yes, you deposit a bank draft at your own bank like any other cheque. Holds vary by bank and amount, so the funds may not be fully available right away even though the draft is bank-guaranteed. If you want certainty before handing over the keys, verify the draft directly with the issuing bank, or deposit it and confirm the funds have cleared before completing the sale.
- Can a bank draft be fake or fraudulent?
- Yes. Counterfeit drafts do exist, which is why you should inspect the bank name, branch, and security features and call the issuing bank using a number you look up independently, never the one printed on the draft. A genuine draft can also be reported lost or stolen and cancelled, so verifying directly with the issuing bank is the most reliable check.
- What should I do if a buyer's bank draft is for more than the sale price?
- Decline it and do not proceed. Overpayment followed by a request to refund the difference is one of the most common private-sale scams, and the original draft often turns out to be counterfeit after you have already sent real money back. Only accept a draft for the exact agreed amount.