Is a bank draft or money order from a buyer safe to accept?
Bank drafts and money orders can be counterfeited convincingly. Never spend or forward funds until your bank confirms full and final clearance.
Last reviewed: 1 June 2026
Explanation
Fake bank draft and money order scams work identically to fake cashier's check scams. A buyer for a high-value item sends a bank draft or money order — often for more than the agreed price — and asks you to refund the difference or forward some funds. The document appears to clear initially but is later reversed. You are then liable for the full amount. Counterfeit bank drafts have become sophisticated enough to defeat teller scrutiny in some cases. The only reliable way to verify is to allow your bank's full settlement process to complete — which can take up to 10 business days — before taking any action.
Common red flags
- Payment instrument sent for more than the agreed price
- Buyer asks you to forward the difference before clearance
- You are pressured to act quickly before full settlement
- Buyer insists on this payment method when others are available
What to do now
- Tell your bank you have received a bank draft and ask them to flag it for full verification
- Do not spend or forward any funds until your bank confirms final settlement
- Refuse any request to return an overpayment before clearance
- If the document was fraudulent, report to your bank and local police
Frequently asked questions
How long does it take for a money order to fully clear?
Domestic money orders typically clear in 1–5 business days. International instruments and bank drafts can take up to 10 business days. Always wait for explicit confirmation from your bank before acting.