Validating a bankers draft

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Cheques are widely used in the US, UK, France, Cyprus, Malta and Ireland.

Other EU countries have all but eliminated the cheque from common usage, and as a Euro country, Ireland will progressively come under pressure to follow suit.

If you often delay depositing your cheques for credit into your bank account, be warned.

From 1 April 2012, cheques, drafts, pay orders and banker's cheques will be valid for only three months.

The main alternative for business transactions is credit transfer, which pays the funds from the payers account immediately. The usage of cheques by private individuals in Ireland has declined as the usage of cards and electronic payments has increased.

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However, it is impossible to predict when the cheque will be deposited after it is drawn.By contrast, when an individual requests a banker's draft they must immediately transfer the amount of the draft (plus any applicable fees and charges) from their own account to the bank's account.(An individual without an account at the issuing bank may request a banker's draft and pay for it in cash, subject to applicable anti-money laundering law and the bank's issuing policies.) Because the funds of a banker's draft have already been transferred they are proven to be available; unless the draft is a forgery or stolen, or the bank issuing the draft goes out of business before the draft is deposited and cleared, the draft will be honoured.Demand drafts without any crossing were being used for transfer of money as an alternative to settlement through cash.A banker's draft (also called a bank cheque, bank draft in Canada or, in the US, a teller's check) is a cheque (or check) provided to a customer of a bank or acquired from a bank for remittance purposes, that is drawn by the bank, and drawn on another bank or payable through or at a bank.The term 'bank cheque' describes a cheque that is issued by a bank.

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