Comparison of cashier s checks, bank drafts, and commercial drafts

A cashier's check is an instrument issued by a bank promising to unconditionally pay a certain amount to the payee or bearer at the sight of the bank.

A bank draft refers to a bill issued by the issuing bank and unconditionally paid to the payee or bearer according to the actual settlement amount at the sight of the draw. The issuing bank of the bank draft is the payer of the bank draft.

A commercial draft refers to an instrument issued by the payer or depositor (or the applicant for acceptance), accepted by the acceptor, and paid to the payee or endorsee on the maturity date. According to the different acceptors, commercial bills can be divided into two types: commercial acceptance bills and bank acceptance bills. Commercial acceptance bill refers to the bill of exchange issued by the payee, accepted by the payer, or issued and accepted by the payer; Bank acceptance draft refers to the bill of exchange issued by the payee or the acceptance applicant, and the acceptance applicant applies to the opening bank, and the bank reviews and agrees to accept.

Since the commercial draft is obviously different from the other two, just say that the difference between a cashier's check and a bank draft:

1.A bank draft is paid according to the actual settlement amount, whereas a cashier's check is paid according to a fixed amount.

2.A bank draft can be used in a different place, whereas a cashier's check can only be used in the same city.

3.Generally, bills of exchange and promissory notes are also different in terms of the number of parties. There are 3 parties to a bill of exchange:

drawer, payer, payee; There are two parties to a promissory note: the drawer (who is also the payer) and the payee. A bill of exchange contains a relationship in which the drawer entrusts the payer to pay.

Bank draft. It is an instrument issued by the issuing bank and unconditionally paid to the payee or the bearer of the bill according to the actual settlement amount at the sight of the draw. Cashier's check.

It is a note issued by a bank promising to unconditionally pay a certain amount to the payee or bearer at the sight of the bill. At first glance, they seem to be more similar, but in fact, they are very different and essential.

1. Bank drafts are mainly used for settlement in other places, while cashier's checks are only used in the same city.

2. The payment bank is different, and the payment bank of the bank draft is usually the other bank of this system or other systems. And the promissory note is issued by who pays it.

3. The reason for the invoice is different, the bank draft is that the remitter deposits the money in the bank first, and the bank only helps it "remittance". It is an intermediary business.

Whereas, a promissory note is a liability of the bank to the payee or bearer. and bank drafts with bank acceptances.

The bill of exchange is fundamentally different. Bank drafts are issued by banks, while bank acceptance drafts are issued by enterprises, just to enhance the credit of the bills of exchange and apply for their acceptance by the opening bank. The bank draft payment is the bank, and the payer of the bank acceptance draft is the enterprise, only when the balance on the account of the enterprise is insufficient, the bank will pay on behalf of the bank, but the bank still has the right of recourse against the enterprise.

Usually a commercial bill of exchange issued by a business.

Bank acceptance (i.e., bank acceptance draft) is required. There are fewer commercial acceptances in the market.

Extended Materials. 1.**Different in nature: the bill of exchange is delegated**;Cashier's check is self-paying**.

2.The main debtor is different: the bill of exchange is entrusted **, and after acceptance, the main debtor, the acceptor and the drawer are in the position of the debtor. The promissory note is self-paying**, and the drawer always occupies the position of the principal debtor.

3.The types of bills are different: a promissory note refers to a cashier's check of a bank;There are two types of money orders: bank drafts and commercial drafts.

4.Payment methods are different: Cashier's checks are only payable at sightBills of exchange can be paid immediately and on a fixed date.

Payment, irregular payment after ticket issuance, irregular payment after ticket sighting.

Legal basis: Article 19 of the Negotiable Instruments Law of the People's Republic of China.

A bill of exchange is an instrument issued by the drawer, and the payer is entrusted to pay a certain amount to the payee or bearer unconditionally on the specified date at the sight of the bill or the person who picks up the bill. Bills of exchange are divided into bank drafts and commercial drafts.

A bill of exchange is an instrument issued by the drawer, and the payer is entrusted to pay a definite amount to the payee or bearer unconditionally at the sight of the bill or on a specified date or a date that can be determined in the future.

Bills of exchange are divided into commercial drafts and bank drafts. If the drawer is an enterprise or an individual, it is a commercial bill. In the sale and purchase of goods, the bill of exchange issued by the buyer with a third party as the payer and the seller as the payee, or the bill of exchange issued by the seller with the buyer as the payer and himself as the payee, is a commercial bill.

A bank draft is a bill of exchange in which the bank is the drawer, and it is a written payment order issued by one bank to another bank. The bank draft is issued by the bank and handed over to the remitter, who sends it to the payee.

A promissory note is an instrument issued by the drawer promising to pay a definite amount to the payee or bearer unconditionally at the sight of the bill or on a specified date or at a future date that can be determined. There are only two parties to a promissory note: the drawer and the payee. The drawer is the person who issues the promissory note and delivers it to another person, and he becomes the payer of the promissory note after completing the act of issuing the promissory note, and undertakes the obligation to pay at sight or periodically.

The payee is the person who obtains the promissory note from the drawer and has the right to remind the drawer and require the drawer to pay.

According to the drawer, the promissory note is divided into a general promissory note and a bank cashier's check. A general cashier's check issued by a business or individual is a cashier's check, and a cashier's check issued by a bank. The promissory note stipulated in China's Negotiable Instruments Law is limited to a bank promissory note.

Bank-issued bearer cashier's checks at sight can be used as a substitute for cash circulation, so countries have certain restrictions on the issuance of cashier's checks. Article 75 of China's "Negotiable Instruments Law" stipulates that the qualifications of the drawer of the promissory note shall be examined and approved by the People's Bank of China, and the specific management measures shall be prescribed by the People's Bank of China.

A bank draft refers to a bill of exchange issued by a bank, which is generally deposited by the remitter with a local bank, and issued by the bank to the remitter to handle the transfer settlement or withdraw cash in a different place. It can be used by units, individuals, and individuals.

A cashier's check is a bill issued by a bank promising to unconditionally pay a certain amount to the payee or bearer at the sight of the bank.

There is a bank draft"Drawer""Beneficiary"with"Payer", while cashier's check only"Drawer"with"Beneficiary".

Bank draft"Drawer"Both"Issuing bank","Beneficiary"It can be the sender or someone else"Payer"It is the issuing bank of the bill of exchange. The prompt payment period for bank drafts is one month from the date of issue.

In the case of a cashier's check, there is no independent payer other than the drawer, and the drawer bears the responsibility of unconditionally paying the amount of the bill on the maturity date after completing the issuance, and does not need to accept it before the maturity date.

1. The issuance is different.

A cashier's check is an instrument issued by the "bank" promising to unconditionally pay a certain amount to the payee or bearer at the sight of the bank. A bank draft is an instrument issued by the issuing bank and unconditionally paid to the payee or bearer according to the "actual settlement amount" at the sight of the draw. The issuing bank is the payer of the bank draft.

2. The characteristics are different.

Cashier's check: easy to use. The current cashier's check in China is convenient and flexible to use.

Units, self-employed individuals and individuals, regardless of whether they have opened a bank account or not, can use cashier's checks for the settlement of all commodity transactions, labor services** and other payments within the same city.

High credibility and strong ability to pay. The cashier's check is issued by the bank and paid by the issuing bank on the specified maturity date, so it has a high reputation and generally does not have the problem of not being able to pay normally. Among them, the fixed amount bank promissory notes are issued by the People's Bank of China and issued by major state-owned commercial banks, and there is no problem that the bills cannot be paid.

Bank draft: It has a wide range of applications, and bank draft is a settlement method that is widely used in remote settlement.

The ticket goes with the person, and the money and goods are cleared. Implement bank draft settlement, purchase unit payment, bank billing, ticket with the person; The purchasing unit purchases the goods and gives the ticket, and the sales unit inspects and ships the ticket, and the ticket is handed over with one hand and delivered with the other hand; The bank pays at the sight of the bill, which can reduce the settlement link, shorten the time of settlement funds in transit, and facilitate the purchase and sale activities.

High creditworthiness, safety and reliability. The bank draft is a payment voucher issued by the bank after receiving the money from the remitter, so it has a high reputation, the bank guarantees the payment, and the payee holds the bill and can withdraw the money from the bank in a safe and timely manner.

Flexible and adaptable. The implementation of bank draft settlement, the holder can be the bill of exchange endorsement transfer to the sales unit, can also be through the bank for partial withdrawal or transfer, in addition to the use of letters, wire transfer or re-handle the bill of exchange to transfer remittances, thus conducive to the purchase of units in the market flexible procurement of materials.

The settlement is accurate, and the balance will be automatically refunded. Generally speaking, it is difficult for the purchasing unit to accurately determine the specific purchase amount, so it is inevitable that there will be a situation where the key skin is used less. In some cases, excess funds are often not liquidated for a long time, resulting in inconvenience and loss to the purchasing unit.

3. The use area is different.

Cashier's checks are only used in the same clearing area, and bills of exchange can be used in both the same city and other places.

1. The parties are different: the parties involved in the bank draft include the drawer, the payer and the payee; The parties involved in the cashier's check include the drawer and the payee.

2. Different nature: bank draft is a kind of entrusted instrument, while bank cashier's check is a committed instrument.

3. The main debtor is different: before the acceptance of the bill of exchange, the bank is the drawer, and the bank acts as the acceptor when accepting. Before and after the exchange of a cashier's note, the bank has always acted as the drawer.

4. The number of transactions is different: there are generally two transactions for bank drafts, while there is only one transaction for bank cashier's checks.

5. Different concepts: bank drafts can be divided into paper drafts and electronic drafts. Generally, banks can settle the amount on the spot after seeing the bills. A cashier's check is a promise issued by a bank, and a cashier's check can be divided into a cashier's check with a fixed amount and a cashier's check with an unlimited amount.