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Does Bank Always Pay Large Checks First?

Does a bank pay larger checks first, so more smaller checks will bounce creating more overdraft income for the bank?


For those customers who overdraw their accounts, it is true that paying larger items first would tend to cause more, smaller checks to be posted against a negative available balance, and that would tend to increase the total fees imposed for overdrafts, if assessed on a per-item basis. It's also said that paying larger items first in case of overdrafts will minimize the risk that a rent or tax or loan payment check would bounce.

Published on BankingQuestions.com 7/31/08