Transfer of funds through personal checks or bank drafts is one of the oldest methods of transferring funds that does not involve physical movement of cash. A personal check is an instrument that is signed by the remitter of the payment. The personal check has to go through the bank clearing system in order to ascertain that the remitter has the required funds in his account. Only then can the receiver get the funds.
In order to overcome this problem transferring funds using a bank draft is resorted to. A bank draft is an instrument issued by the remitter’s bank after verifying that the funds are available in the remitter’s account. This cuts off one step and makes the process a bit more convenient.
Bank drafts and personal checks have one major disadvantage and one major advantage over the electronic method of transfer of funds. In the case of both personal checks and bank drafts the transfer of funds takes a very long time. Personal checks take about 21 days to clear. Bank drafts take about 10 days to clear because they involve lesser steps. This time period gets extended by the number of holidays (including weekends) during which the bank does not work. Also the time taken in post and the processing time at the receiver’s end has to be added. The online casino will usually not allow the player to use these funds till the payment is cleared. Hence in the case of a personal check the player may have to wait for up to a month before he can wager with the funds. And in the case of a bank draft the wait may be about three weeks. The disadvantage with the bank draft however is that the remitter’s account gets debited before the bank draft is prepared. Whereas in the case of the personal check the player’s account is debited when the check comes to his bank during the clearing process.
Online casinos allow players to withdraw funds using personal checks written by the casino. These face the same disadvantage of delay with the player receiving the funds after a month. In addition the casino levies a considerable fee per check issued to cover its processing costs. Hence receiving withdrawals through personal checks can be very costly, especially for small amounts.
The benefit of personal checks and bank drafts is safety. Electronic methods using the Internet require the player to divulge sensitive information like credit card numbers or bank account numbers. Though online casinos have adequate security arrangements in place there is a possibility of hackers accessing and misusing this information and causing the player severe financial loss.
Online casinos discourage receiving deposits through personal checks or bank drafts by offering incentives on other methods. But they do not refuse this option. Casinos issue personal checks for withdrawals, but usually not bank drafts.