A demand draft is a document that can be used to withdraw money from another person's bank account.In addition to the account holder's permission, the person that is withdrawing money will need to have their account numbers.You can learn how to safely use a demand draft.
Step 1: The necessary information should be gathered.
Proper information will need to be acquired before a demand draft can be created and deposited.When the demand draft is deposited into the bank, this information will be used to fill it out.If you are selling an item or service, you will need to provide accurate information to your client.You will need to obtain the account numbers for the person paying.Consent by the person whose account will be debited to the transferral of funds must be obtained.A faxed document with a signature and date is the form of written consent.
Step 2: If you are selling a service or good, give the required information.
If you are working remotely with a client to sell them a service or good, it is a good idea to provide the proper information about either, as this can limit liability or promote customer relations.Before agreeing to transfer, the financial institution may have consumer protection requirements.Inform your client about the exact price and amount of items you're selling by meeting the following criteria.Extra fees, deposits, certifications, limitations, and more are information about the item or service.No-refund or refund policies are available.The exact details of any prizes for purchase must be disclosed.The chances of winning, costs, and methods of entry are included in the details.A payment plan that is similar to a free-trial offer will require the buyer to take action to avoid future payments.
Step 3: Obtain information about the client's bank account.
To deposit the demand draft in your own bank account, you will need to acquire the necessary pieces of information.Providing accurate information is important since a demand draft doesn't require a signature.To make a payment or payments, you will need the account number and the routing number of the bank account.The account numbers are found at the bottom of the check.The number consists of nine digits.The account number is to the right of the routing number.
Step 4: Allow for consent.
A demand draft doesn't require a signature, but it does require consent from the person having money taken from their account.Either written or spoken consent is enough.You will need to have a recording of the consent.You can record the entire conversation.If making a recording of verbal consent, make sure to include the date of the agreement, amount being agreed upon, name of client, number of payments, and telephone number where the client can call.The safest option is to get written consent.As you wait for the written form of consent, it may take more time.The client should write the date, the amount he agreed to pay, his name, number of payments, and telephone number where the client can call.A fax or a voided check can be used to get written consent.
Step 5: The demand draft needs to be created.
To complete your demand draft, you need an official form and format.Obtaining an official form from your bank is the safest way to create your demand draft.You can get demand drafts from the banks.An example of a demand draft form from a bank can be found at "HSBC.com".The safest option is to work with your bank.Demand draft scam can occur if you choose a service outside of your bank.
Step 6: You can print the draft document.
You should print the demand draft after you have filled it in.Paper copies of the demand draft are needed to deposit it.You should print at least two copies for yourself.One will be submitted to your bank, and the other held in your own records.You might want to send another copy to your client.
Step 7: You can deposit the demand draft with your bank.
You are ready to deposit the demand draft into your bank after you have prepared and printed it.Similar to depositing a check into your account, the process will be similar.The consent has already been obtained so you don't need a signature on the draft.