when you receive the demand draft check the demand draft details ensure all information is correct including the payee s name amount and instructions to ensure they match your requirements from there all that s left is to deliver the demand draft to the payee depending on your preference and bank s policies 
demand drafts vs other payment methodsa demand draft is issued by a bank while a check is issued by an individual also a demand draft is drawn by an employee of a bank while a check is drawn by a customer of a bank payment of a demand draft may not be stopped by the drawer as it may with a check although a check can be hand delivered this is not the case with a demand draft the draft may be drawn regardless of whether an individual holds an account at the bank while a check may be written only by an account holder a demand draft is a physical payment instrument issued by a bank or financial institution representing a guaranteed form of payment as the purchaser pre pays the funds on the other hand a wire transfer also known as a bank transfer or electronic funds transfer eft involves the electronic transfer of funds from one bank account to another the processing time for a demand draft may vary depending on factors such as the issuing bank and delivery method however wire transfers are generally faster than demand drafts often completed within hours or minutes this allows for swift transfer of funds banks typically charge a fee for issuing a demand draft which may vary depending on the bank and the amount of the draft additional charges may apply for services such as courier delivery wire transfers usually also involve transaction fees which can vary depending on the banks involved the transfer amount and whether it is domestic or international demand drafts are commonly used for secure transactions such as large amounts educational fees property purchases or settling financial obligations this is the case where substantiation and secure payment delivery are highly important though wire transfers may also be used in this case wire transfers are a more versatile form of payment that includes regular daily transactions of lower importance contact your bank immediately if your demand draft is lost or stolen online payment systems are digital platforms that facilitate electronic transactions over the internet allowing individuals and businesses to make payments or transfer funds between bank accounts or digital wallets without the need for physical instruments compared to demand drafts online payment systems typically offer faster processing times allowing transactions to be completed in real time while demand drafts often incur transaction fees more and more online payment systems may also offer free transactions for certain transfers or within specific limits this may be free transactions based on the number of quantities or free transactions based on the size of the transaction consider how popular shopping websites can easily facilitate online payments for free online payment systems have gained significant popularity worldwide used for various transactions including e commerce purchases bill payments peer to peer transfers and subscription services as noted above with wire transfers demand drafts may be more suitable for more select types of transactions as opposed to online payments which may be used much more broadly 