Cashing a Banker's Draft from the USA

Question posted by edward thomas, on behalf of jt motors in LL48

I recently received a banker's draft from Florida USA for 44,300 dollars for a vehicle I am about to export but my bank have told me that it will take 8 weeks to clear. I've checked it out with the bank in Florida and they have confirmed to me that I can go ahead and cash it. Is there a faster way of doing this? After all it is a draft. Would appreciate if you could help.

Thanks.

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Colin Jones, on behalf of Transpact.com in NW11.

BEWARE.
Bankers drafts can be fraudulent, and can be recalled some time after cashing, leaving you with no payment.
I would never accept such a payment.
Send it back very securely (with at least a signature on delivery - use an appropriate courier service) and ask for a wire transfer.
For this amount of money (and even for a much, much lower amount, say,over $100) there is no excuse not to use wire transfer.

Lots of Red Flag warnings are flashing - they may be false positives, but they may also indicate real danger.
Take care

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Ian Nash, on behalf of Santander Corporate & Commercial in Reading.

Edward,

If a bank draft is genuine then it does mean that the bank issuing the draft has checked that their customer has the necessary funds to issue it, and the funds relating to the draft will have been debited from the customers account. However that draft still has to be presented back to the issuing bank for payment in the same way a normal cheque would be, and this is what takes the time, although 8 weeks does seem excessive.

JT Motors may be able to ask their own bank to negotiate the draft, i.e. pay the funds immediately pending receipt of funds from the US, providing they are satisfied with the bank issuing the draft There would be a charge for this negotiation.

Hope this helps.

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Colin Jones, on behalf of Transpact.com in NW11.

Ian Nash - Santander,

Don't you find that a significant minority of foreign bankers drafts turn out to have been stolen and cancelled, or otherwise counterfeited or become unavailable for payment ?

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Sanjeev Chhugani, on behalf of Bilbus in Buckinghamshire.

Hi Edward

As the others have suggested, if you are able to get the buyer to make payment electronically, that will be first prize.

If this is not possible, then there may an option available to you in the US, but it may also take time. If this is a common occurrence for you, maybe one of our partners in the US may be able to help. You can email me at info@bilbus.com to give me an idea of frequency and volumes involved, and I'll get one of our payment partners to look into this for you.

Kind regards.

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