Cashing a Banker’s Draft from the USA

Question

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.

Answer

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

Answer

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.

Answer

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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