What is cad draft on bank statement

If you find a draft withdrawal on your bank statement, your bank has deducted funds from your bank account to pay an electronic bill. Draft withdrawals require you to set up the electronic payment with the business that issues the bill.

What does draft mean in a bank statement?

A demand draft allows someone to withdraw money from your checking account without your signature. It is also called a telephone check or preauthorized draft.

What does a drafted transaction mean?

Key Takeaways. A bank draft is a negotiable instrument where payment is guaranteed by the issuing bank. Banks verify and withdraw funds from the requester's account and deposit them into an internal account to cover the amount of the draft. A seller may require a bank draft when they have no relationship with the buyer ...

What does drafting your account mean?

Related Definitions\n\n Draft account means an account upon which funds are withdrawn through a properly payable instrument or an electronic transaction.

Does draft mean checking account?

Credit unions refer to checking accounts as share draft accounts. While it might not affect how you use the account, share draft accounts are a form of ownership. This means you are a partial owner of the credit union, while checking account owners are customers of banks.