Demand Draft

Demand Draft

Written order directing that payment be made, on sight, to a third party. The person writing the draft is called the drawee; the bank making the payment is the drawer, or the payor bank. The beneficiary of a demand draft, the person receiving the payment, is the payee. Drafts may be payable at some future date (time drafts) or on sight (demand drafts). Demand drafts drawn on banks are known as Checks.

Demand DraftsDemand drafts are similar to a Money Order, except that they can be issued in any currency that a seller may request. Major banks and international exchange services offer demand drafts.

Receipts are provided at the place of issue.
Demand drafts usually do not incur a fee when deposited in the same currency. For example an Indian seller receiving a demand draft in India usually will not have to pay fee's for the exchange of currency.
Demand drafts are traceable.
Note: Most banks charge the person requesting the draft to pay a fee. If your item is of low value, this fee could be more than the value of your item. If choosing to pay with this method, make sure you are aware of all the fees beforehand and factor this into your final price estimate.