If you intend to make a large purchase such as a car, the seller may ask for the purchase price to be paid by bank draft. This can be useful because the person to whom it is made out has the advantage of knowing that it will almost certainly be paid. This is important if you are selling valuable goods or exchanging valuable documents e.g. cars or houses. Provided the draft is genuine and has not been lost or stolen, payment will be guaranteed (if it is fraudulent or conterfeit it will not be paid).