How to Request and Obtain a Bank Draft from HSBC

When the time comes to make a large financial investment, such as purchasing a vehicle or a piece of property, many consumers will request a bank draft from their bank instead of paying with a cheque or another similar method.

This method of payment is considered to be more reliable for certain situations, as there’s no risk of it bouncing when cashed, which is why many merchants require bank drafts to process a transaction. However, if you’ve never requested a bank draft before, you may be unaware of the process, as different banks will have their own method of issuing bank drafts.

For instance, if you bank with HSBC, what options are available for obtaining an HSBC bank draft? To learn the answer to this question, along with other related facts, keep reading below!

How to request and obtain a bank draft from HSBC

In order to obtain a bank draft from HSBC, account holders must do so by visiting their local branch. You don’t have to make an appointment with a broker; instead, you can simply come in during regular business hours and speak to a clerk.

After verifying your account information, the clerk can process the request and provide you with your bank draft. According to HSBC customer service, you will receive your bank draft on the requested day.

Unfortunately, HSBC doesn’t currently have a provision for requesting bank drafts online. Therefore, you’ll have to request a draft in a town or city with a physical HSBC location.

If you don’t currently have an HSBC branch in your area, or you are unable to visit one within the time that you need to complete a payment, you may have to discuss using an alternative payment method with the merchant with whom you’re doing business.

What is a bank draft?

Bank drafts are similar to cheques in that they are a physical paper form of payment. However, unlike cheques, bank drafts are a more reliable payment method, as they won’t bounce when cashed. A bank draft is basically a guarantee from your bank to a third-party recipient that the money you owe will be paid out.

As well, unlike a cheque, you can use a bank draft to pay for goods and services in different currencies besides the Canadian dollar.

As touched on above, bank drafts are generally used to make larger payments where a guaranteed payout is crucial. This includes expensive purchases like down payments on homes and vehicles.

As well, service workers like contractors often won’t accept cheques, e-transfers, or any other forms of payment besides bank drafts to better guarantee they will be paid for their work.

Other related FAQs

Now that you’re aware of how to get a bank draft from HSBC, you may have a few other questions related to this topic. To learn more about how HSBC bank drafts work, keep reading below:

How much does HSBC charge per bank draft?

According to customer service, HSBC currently charges $7.50 per bank draft, though this price may increase or decrease over time.

Can I cancel a bank draft from HSBC?

Bank drafts cannot be cancelled by HSBC once they have been issued, as they are a fixed sum of money guaranteed by the bank to be paid out to a third-party recipient.

However, if you no longer need to provide your bank draft as payment, you can simply bring it back to the HSBC draft where it was obtained, and a clerk will dispose of the copy.

As well, if you end up losing your bank draft or it’s stolen before being paid out to the recipient, you can provide all the necessary information to a customer service representative at an HSBC branch, and they will see to resolving the issue.

Note that this may involve providing a surety bond or signing an indemnity to further guarantee that the funds issued will be paid.

Is a bank draft the same as a cheque?

As touched on above, a bank draft is not the same as a cheque. While they are deposited in much the same way and look similar, bank drafts are a more guaranteed form of payment. Bank drafts are provided by HSBC directly, meaning the bank is required to pay them out once they are issued.

In contrast, cheques are distributed by account holders and not HSBC, meaning that cheques have the ability to bounce if the account holder doesn’t possess the necessary funds in their account to complete the payment.

Further, bank drafts can be paid out in different currencies, meaning you can use a bank draft to make purchases outside of Canada.

Can an HSBC bank draft be deposited in any Canadian bank?

Fortunately, any HSBC bank draft can be deposited at any bank or credit union, provided the information on the draft is correct and the deposit is processed accurately.

Today, most banks allow consumers to deposit a bank draft through a few different means, including in person at the bank, through an ATM machine, or by scanning the bank draft through a bank’s mobile app.

What is the timeline for a bank draft to clear in Canada?

While bank drafts are generally ready to deposit immediately, there may be a slight delay for the funds to be available in the recipient’s account.

This will usually only take a few days, but if the bank account of the recipient is outside of Canada, it may take around 30 days for the money to show up in their account balance.

What are some alternatives to bank drafts?

If you’re unable to obtain a bank draft from HSBC, there are a few alternative payment methods you can use, such as the following:

• Money orders- Similar to a bank draft, a money order is a bank-guaranteed form of payment that you can obtain from HSBC. This form of payment can be cashed for up to $999.99 CAD.
• Certified cheques- This form of payment works similarly to bank drafts, but instead of withdrawing the funds from your account, they are put on hold.
• Wire transfers- A wire transfer can be sent through your HSBC bank account by providing a bank teller with your recipient’s account information to complete the transaction. Wire transfers must be done at a physical HSBC location.
• E-transfers- If the merchant you’re paying has a bank account compatible with Interac, you can pay them via e-transfer through the HSBC website, but also come with exchange rates to consider.
• Third-party money transfer apps- You can send the payment owed to your recipient through PayPal, Transferwise, or another similar money transfer app, provided your HSBC account is linked to one of these websites.

Conclusion: how to get a bank draft at HSBC

To request and obtain a bank draft through HSBC, customers must visit their local HSBC branch and make their request in person. Currently, there is no provision for requesting a bank draft online.

Once you complete your request, the bank draft will be made available immediately, which you can then pass on to the recipient to deposit into their personal or business bank account. Note that it might take several days for the funds to show up in their account, and if they’re based outside of Canada, it may take up to 30 days to fully process.