Pay Order vs Demand Draft vs Online Transfer
A simple comparison of the three most common payment instruments in Pakistan, with a decision helper that tells you which one fits your situation.
Please note: bank charges vary by bank and by amount. Always confirm the exact fee at your branch before paying.
Comparison table
| Feature | Pay Order | Demand Draft | Online Transfer (IBFT / RAAST) |
|---|---|---|---|
| What it is | A prepaid cheque issued by your own bank, payable to a named person or company. | A prepaid instrument payable at another branch or city, also in a named payee’s favour. | Money moved electronically from one account to another, using internet or mobile banking. |
| Typical cost | Rs 200–500 (varies by bank) | Rs 300–600 (varies by bank) | Often free via RAAST; small fee may apply for IBFT |
| Time to issue | 15–30 minutes at the branch | 30–60 minutes at the branch | Instant, from your phone |
| Best when | Paying a known person or company in the same city (car dealer, university, plot advance). | Paying a government office or anyone in another city, where a specific payee name is required. | Sending money to family or paying known suppliers quickly and cheaply. |
| Record / proof | Physical instrument with bank stamp and serial number. | Physical instrument with bank stamp and serial number. | Digital receipt and bank statement entry. |
Pros and cons
Pay Order
Pros
- Cannot bounce — it is prepaid by the bank.
- Quick to issue, same-day.
- Widely accepted by dealers, universities and societies.
Cons
- Usually payable only within the same city.
- You must visit the branch.
- Issue and cancellation charges apply.
Demand Draft
Pros
- Also prepaid, so no bounce risk.
- Payable in another city or at a specific branch.
- Preferred by many government departments.
Cons
- Slightly higher charges than a pay order.
- Takes longer to issue at the branch.
- Lost drafts are a hassle to reissue.
Online Transfer
Pros
- Instant — no branch visit needed.
- Often free via RAAST.
- Automatic digital receipt for your records.
Cons
- Needs internet banking and daily limits apply.
- Not always accepted for official or legal payments.
- Wrong account number can send money to the wrong person.
Decision helper
Choose what you need to pay for, and we will recommend the best instrument.
How to use
- Read the comparison table to understand what each instrument does and what it usually costs.
- Check the pros and cons before deciding.
- Use the decision helper — pick your scenario and get a recommendation with a short reason.
- Bank charges vary by bank, so confirm the exact fee at your branch before paying.
This is a general guide only, not financial advice. Rules and charges differ between banks and change over time.