What is the difference between a Wire Payment and a Draft?

 

Both are bank issued, guaranteed funds items.

The key differences are convenience and speed.

A wire payment can be sent to most anywhere in the world with value being received and given to the beneficiary as quickly as same day.

Drafts require that you physically bring the item to your bank to deposit.  Items sent out of country will be subject to collection processes in which the payee might not receive value on the draft for months.  

Even locally deposited drafts may be held by your bank for a few days where as wire payments are given same day value.

 

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