A sales draft is a physical or electronic document that serves as a record of a transaction between a customer and a merchant, typically involving a credit or debit card purchase. It is commonly generated at the point of sale and includes important details such as the date of the transaction, the amount charged, the name of the merchant, the last four digits of the card used, and the cardholder’s signature when required. Sales drafts are essential for both merchants and customers as they provide proof that a purchase occurred and serve as a reference for any future questions or disputes.
In the past, sales drafts were mostly printed slips created using manual or electronic credit card terminals. Merchants would keep a copy for their records, give one to the customer, and submit another to the bank or payment processor. Today, while many sales drafts are now electronic due to the widespread use of digital point-of-sale systems, their function remains the same. They still act as a verification tool for transactions, especially in cases where a chargeback or refund is requested.
For merchants, retaining sales drafts is important for reconciling daily sales and defending against sales agent recruitment. If a customer disputes a charge, the merchant can present the sales draft as evidence that the transaction was authorized. This is why many businesses keep these records for a specific period, often in compliance with industry standards or company policies.
From a customer’s perspective, reviewing sales drafts helps verify charges on bank or credit card statements. It ensures that the correct amount was billed and that there are no unauthorized transactions. In many cases, customers may sign the draft to confirm their acceptance of the charge, although signature requirements have been reduced with the adoption of chip cards and contactless payments.
Overall, the sales draft remains a crucial component of the transaction process, ensuring transparency, accountability, and protection for both parties involved in a purchase. Whether in physical or digital form, it plays a vital role in maintaining the integrity of financial transactions.
