Why is Nordea a big pain

[trinkitrins]

Thanks all for your valuable feedback

[Honest]

How does a bank draft payment work? Nordea says 40 euros to cash a draft, other banks should similar charges, then how the Canadian embassy got those 550 dollars mentioned in some previous posts? I mean fee was 550 dollars and draft was made for 550 dollars, some money must have been paid in cashing that draft, so the final payment was not 550. So how it works then?

[foca]

How does a bank draft payment work? Nordea says 40 euros to cash a draft, other banks should similar charges, then how the Canadian embassy got those 550 dollars mentioned in some previous posts? I mean fee was 550 dollars and draft was made for 550 dollars, some money must have been paid in cashing that draft, so the final payment was not 550. So how it works then?

Well, it depends on the country and the currency. Foreign checks (banker's drafts ) are presented for negotiation through existing inter bank payment systems , but sooner or later the originals should be presented to the issuing bank - here comes the charge for cashing it. In olden times there were clearing systems for checks (both personal and bankers') and checks were in wide curculation. Nowdays they represent a tiny percentage of all payments. But still , even in Finland , a bankers check drawn by a Finnish bank is cleared free by another . This form of payments is used for "cash against goods" transactions (such as in sales of apartments etc. when a sales agreement is confirmed by a public notary).
A check drawn in Canadian dollars will be cashed by the greedy Canadian government with a substantial fee , since the issuing bank is a foreign one. But that fee is included in the payment - so you paid it....