yet been presented for payment. This will occur on day T+0. Second, in order to cover the first check, on day T+0 the individual goes to a retail establishment and writes Check #2 to purchase an item, and gets an additional $100 cash back by writing the check for more than the value of the item purchased. Check #2 is written on day T+0 – this is the kiting. The individual then deposits the $100 so the account now has $110, which is sufficient for Check #1 to clear, but after this there are non-sufficient funds for Check #2 (the kite) to clear. This process can be repeated, with the amount possibly increasing (as in a Ponzi scheme). If the individual then gets $100 in cash on day T+1 and deposits it in their account, Check #2 clears and the retail establishment victims who accepted the bad check do not in fact lose money, and remain unaware. If, on the other hand, the individual does not get enough cash and does not continue kiting, then Check #2 (or some further check, if this has continued a few iterations) bounces, and the retail establishment has been defrauded – the consequences for accepting the bad check is the $100 cash loss plus the cost of the product the individual fraudulently purchased. The principal basis of retail kiting is that by giving cash (which is immediately available, and whose deposits clear faster than checks do) in exchange for a check, the retail establishment is providing check-cashing services and taking credit risk on the check – it may be dishonored. Another version of this scheme involves purchasing an item from a place of retail with a check, and returning it promptly for a cash refund, followed by depositing that cash into the transactional account. This is more difficult these days, as more places of retail will delay a refund on purchases made by check. Retail kiting is more common in suburban areas, where multiple supermarket chains exist within proximity. While it is more difficult to detect and prosecute, it involves lesser amounts of cash than circular kiting, and therefore is a lower threat. Corporate kiting Corporate kiting involves the use of a large kiting scheme involving perhaps millions of dollars to secretly borrow money or earn interest. While limits are often placed on an individual as to how much money can be deposited without