bank draft in USD sent to the U.S.

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supremespunch
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bank draft in USD sent to the U.S.

Post by supremespunch »

It seems bank drafts cost less than Western Union fees. Today at Scotia bank I was warned that it could take 21 days for a U.S. recipient to receive bank draft funds. How long will a U.S. bank actually hold a bank draft issued by a Canadian bank in USD?
twa2w
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Re: bank draft in USD sent to the U.S.

Post by twa2w »

It depends on the bank involved and the relationship the recipient has with said bank.

Holds on foreign drafts in us banks range from ( generally) between 21 and 35 days.

If the draft is small and the recipient has a solid relationship and lots of $ at the bank, there may be no hold.

If the recipient has received numerous drafts in the past without issues, it may not be held.

A bank transfer or western union are quicker for sure.

Some of the banks had an electronic system for transfers to other countries similiar in some ways to etransfers which was cheap and took only a couple of days but it was only for small amounts. ( 1500 to 2000 come to mind). You need similiar info to a wire transfer. Ie aba routing number or swift code of the receiving bank and the recipients account information.
RBC had this 6+ years ago and one other bank. Not sure if still in place and if kinks worked out.
I am assuming more widespread now but could be wrong.
OhGreatGuru
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Re: bank draft in USD sent to the U.S.

Post by OhGreatGuru »

It's the same thing with money orders. They used to be "as good as cash". After all, they are prepaid. But banks in various countries in the world are holding them for up to 30 days. I think because of counterfeiting; but it may also be a result of anti-money-laundering procedures.
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