Check-Kiting

Check-kiting is a term that describes an illegal practice of taking advantage of the fact that it takes checks a few days to clear in order to use the money in the interim. It involves deliberately writing a check for more money than you have in the account so you can temporarily use that money before ultimately replacing it in the account. This is different from an overdraft because it is done deliberately as a means of fraudulently using funds you don’t have.