Differences between a Cheque and a DD

• A cheque is issued by an individual, whereas a DD is issued by a bank.
• The amount mentioned on the DD is collected by the bank from the drawer prior to drawing the DD, whereas the amount mentioned on the cheque is debited only when the cheque is presented for payment.
• The payment of cheque can be stopped by the drawer of the cheque, whereas the payment of a DD cannot be stopped.
• A cheque can bounce or be dishonoured, but a DD cannot be bounced and dishonoured because it is already paid. A DD will bounce only when the drawee bank does not have enough funds to honour the DD.
• A cheque can be made payable either to a bearer or to order. But a DD is always payable to order of certain person or organization, it cannot be a bearer draft.