Glossary
Check kiting
Also called: check fraud, float fraud
One-sentence definition
Check kiting is the historical practice of writing checks between two or more accounts to exploit float — the time between deposit and clearing — to inflate apparent balances.
Key takeaways
- Predates electronic banking but the underlying mechanic persists.
- Modern analog: account kiting via electronic transfers.
- Real-time settlement has largely closed the float window for checks.
Why it matters for MCA underwriting
Understanding the history clarifies the modern phenomenon Vyaso detects. Account kiting in MCA is the electronic descendant of check kiting — same purpose, different mechanic.
How Vyaso detects check kiting
Vyaso detects the modern variant: self-transfers and cross-account flows that double-count revenue.