How did multiple bank branches of the same institution maintain an individual’s balance prior to electronic banking?

Question

What would stop people from withdrawing money from multiple banks and over drawing before all bank branches could be updated on the person’s balance?

In: Economics

Answer 1

Used to people would write bad checks. Sometimes in the hops it wouldn’t be processed until after funds were to be deposited. Such practice was called floating a check. If you were getting paid on Friday and needed groceries on the Wednesday before. You’d write a chack you knew wouldnt be able to be cashed that day. Hopefully you’d get your paycheck and be able to deposit it before those floating checks came in.

If someone went around writing bad checks with insufficient funds and was caught. Then there is the risk of arrest for writing fraudulent checks. Usually you’d be put on a list with the store to not be able to pay via check.