What is check kiting?

Answer 1

This is where 2 people play off on the waiting period for checks and deposits to go into banks. It's not as doable as it used to be as a lot of times money is electronically deposited in 1 to 2 days. Here's how it used to work:

My bank takes 3 days to deposit a check (and your bank does the same with checks), and I need to write a check but neither you nor I have the cash, so you write me a check for the amount I need, I write the check for whatever. Then 2 days later I give you a check deposit for the amount you wrote me, 2 days later, I put cash into my account for the amount of the check - you've used the bank's money to pay something 4 to 5 days before you actually had any cash.

It's illegal and no longer works - you might get one day out of it but the 4 - 7 days worth of time you wrongly used to get no longer is there.