payable through draft (PTD)

Popular Terms
A payment instrument issued to a payee in lieu of a traditional check. This payment method allows the payor more control over the fund disbursement process. When a check payable through draft is presented to the bank listed on the instrument for payment, the bank submits it to the issuing party for approval. The issuer reviews the draft to ensure that all information is correct before authorizing payment. The issuer may delay authorization if any terms related to the transaction have not been met by the payee. Payable through draft transactions are a common method of insurance claim payment.


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