how did banks clear checks and get funds from other banks before computerization?

Question

how did banks clear checks and get funds from other banks before computerization?

In: 6540

Answer 1

Many years ago when I worked at Radioshack before everything was computerized, we had to manually verify funds for customers who paid by check. Literally as a store employee, we would take the check, call the bank phone number (listed on the check), state we were a cashier with Radioshack and wanted to confirm “funds are available” for literally every customer who paid by check.

It was extremely awkward to make this phone call in front of the customer while there was a line of people waiting to check out and made no sense to me – even if there were funds available that afternoon, doesn’t guarantee the funds would be available two days later when someone cashes the check.