Foreign Currency Drafts
WSFS offers the ability to purchase foreign currency (FC) bank checks (FC Drafts) in over 15 currencies and delivers the check/draft directly to the location specified by the customer.
What are FC Drafts?
A foreign currency draft is a bank check drawn on a foreign bank, denominated in foreign currency. Foreign currency drafts are easily cleared by the payee’s bank, since the funds are essentially local.
Although WSFS encourages customers to send wires when possible, sometimes drafts are the preferred payment method.
Are Checks/Drafts Still Used?
Drafts may be the preferred method of payment over wires in several situations, including…
- Smaller transaction amounts
- Situations in which payment should be timed with delivery
- Tax payments
- Rent payments
- Tuition payments
- Specific industries tend to prefer payments via draft (e. g. music publishing, real estate)
Advantages of FC Drafts vs. USD Checks
- Faster Deposits – Funds are cleared more quickly when a draft is issued in the currency of the payee’s account and drawn on a local bank.
- Fixed Conversion Rate – When sending a foreign currency draft abroad, the exchange rate is set at the time of issuance. Sending a USD check is subject to an unknown exchange rate.
- No Risk of Bounced Checks – Foreign currency drafts are bank checks and do not bounce.
Disadvantages of FC Drafts vs. Wires
- Security – Drafts are sent by mail and could get lost. FC wires are sent through a secure network.
- Speed – FC wires value in two days . A FC draft value is dependent on physical draft delivery and clearing.
Frequently Asked Questions
A WSFS Capital Markets expert will help you find the right solution.
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