How Bank Draft Payment Works When You Sell a Car in Alberta
Samir Osman | Co-Owner & AMVIC-Licensed Wholesaler, DriveOffer
June 22, 2026Updated November 2, 2026
A bank draft is the safest way to get paid for your car, as long as you watch it being issued and plan for the hold.
Article Summary:
- A bank draft is safe if you watch the teller issue it.
- Banks no longer verify drafts by phone. Being there is the check.
- Expect a 4 to 5 business day hold, unless it's deposited at the issuing bank.
- Once deposited, the buyer can't cancel it. Before that, treat it like cash.
We pay for almost every car we buy with a bank draft, and it's what sellers worry about most. Here's how to make sure a draft is real, and what happens after you deposit it.
Is a bank draft safe when you sell a car privately?
Yes, if you're there when it's issued.
A draft is paid from the bank's own money, so a real one can't bounce. It also leaves a record of who paid whom. The risk is a fake one, usually brought to your door already made out by a buyer who won't go to a bank.
So go to the bank with the buyer and watch the teller print it:
- 1.Meet at a branch, not at your house or in a parking lot
- 2.Watch the draft being issued, then deposit it before the car leaves
- 3.Check your name is spelled right. A draft can only go into an account in that name
- 4.Accept the exact agreed amount, nothing more
Want the number for your own car? Get a free offer. It takes about a minute.
If a buyer won't go into a branch with you, don't sell to them.
Why can't you just phone the bank to check it?
Banks used to call each other to verify drafts. They stopped about a year ago because of the hassle and the amount of fraud.
Being there when the draft is printed is the check that still works.
Why are the funds on hold after you deposit it?
This surprises almost everyone. Two years ago a deposited draft was available right away. Now, in every sale we do, the receiving bank holds the money for about four to five business days.
The hold doesn't mean anything is wrong. Banks apply it to every draft, and the money was set aside when the draft was printed.
Plan for it. A Friday deposit isn't a Monday balance, and if you need the money to buy your next car, the hold sits in between.
Is there any way around the four to five day hold?
Yes. A draft deposited at the same bank it came from usually clears right away. Ours are drawn on RBC, so sellers who bank with RBC can usually use the money that afternoon.
Ask the buyer which bank the draft will come from. If it matches yours, meet at that branch.
Can a buyer cancel a bank draft after handing it over?
Not once it's deposited. Pulling the money back means the bank opening an investigation, and it's very hard to do even while the funds are on hold.
Before you deposit it, treat it like cash. Lose a $30,000 draft and you've lost $30,000, so deposit it right away.
What if you don't want the car to leave before the money clears?
Ask. It's a reasonable request.
A seller in Calgary selling us a $30,000 Toyota Highlander kept it in his garage until the funds cleared, a week and two days. The only rule was that the kilometres stayed the same. He later sold us a second vehicle.
Another seller banked where we do, so we moved the money straight into her account and she paid out her loan from there.
If you won't accept a draft at all, say so. We've paid cash and sent e-transfers for sellers who wanted that.
How does a bank draft compare to other ways to get paid?
Here's how the usual options stack up when you sell a car:
| Bank draft | Certified cheque | Cash | E-transfer | |
|---|---|---|---|---|
| Record of who paid you | Bank draftYes | Certified chequeYes | CashNo | E-transferYes |
| Main risk | Bank draftFakes, so watch it being issued | Certified chequeFakes, and harder to check | CashCounterfeit bills, and carrying it home | E-transferA transfer that shows as pending and never settles |
| When it's really yours | Bank draftAfter a 4 to 5 business day hold, or the same day at the issuing bank | Certified chequeOnce it clears | CashRight away | E-transferOnce it's deposited, but daily limits are usually too low for a car |
How does DriveOffer pay you?
By bank draft from our bank, at the branch with you. If there's a loan on the car, we pay the lender first and your draft covers what's left.
We'll tell you about the hold before the appointment. If the timing is a problem, say so when you book.
What Hasan Says
Hasan runs our pickups, so he's the one at the counter while a seller decides whether to trust a $30,000 piece of paper. He gets the nerves. His view is that a draft you watched a teller print is about as safe as money gets in a private sale. What he wishes sellers knew is how drafts work, because not knowing has cost him more days than anything else in the job.
From our experience: We pay by bank draft on nearly every pickup in Alberta, so we've walked sellers through the hold many times, and once left a car in its owner's garage until the funds cleared.
Want to know what your car is worth?
Tell us the year, make, model and kilometres and we'll give you a free offer. It takes about a minute, and there's no obligation.
Get a Free OfferFrequently asked questions
- Is a bank draft safe when selling a car privately?
- Yes, if you're there when it's issued. Go to a branch with the buyer, watch the teller print it, check your name, and deposit it before the car leaves.
- How long does a bank draft take to clear when you deposit it?
- About four to five business days. Deposit it at the same bank that issued it and it usually clears the same day.
- Can a buyer cancel a bank draft after they give it to you?
- Not after you deposit it. Before then it's like cash, so deposit it right away.
- What if the buyer will not come to the bank with me?
- Don't sell. Meeting at a bank costs a real buyer nothing. Fake draft scams depend on you never going into one.
- Is a bank draft better than cash or an e-transfer for a car sale?
- Usually, because it leaves a record of who paid and how much. Cash leaves no record and is risky to carry. If you'd rather have cash or an e-transfer, ask.
Where this came from
This article draws on our own interviews. Each link opens the transcript at the part it came from.
- What changed about bank drafts, and why the funds sit on hold · Hasan Tayem, Field Operations Manager · Hasan Tayem, September 10, 2026
- Whether a bank draft can be cancelled once it is issued · Hasan Tayem, Field Operations Manager · Hasan Tayem, September 10, 2026
- Kelowna: running the money through the seller's own account · Hasan Tayem, Field Operations Manager · Hasan Tayem, September 10, 2026
- The Highlander that sat in its owner's garage for a week · Hasan Tayem, Field Operations Manager · Hasan Tayem, September 10, 2026
- The one thing he wishes people understood · Hasan Tayem, Field Operations Manager · Hasan Tayem, September 10, 2026
- When a seller won't take a bank draft · Samir Osman, Co-Owner & AMVIC-Licensed Wholesaler, DriveOffer (Edmonton, AB) · Samir Osman, September 6, 2026
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