If I had to spot a guess, he was taking advantage of his savings account building interest, he had me and at least 2 other employees doing this. Walmart would charge $6 for the check processing fees, so…
(1500 - 6) * 3 employees = $4482, every week.
I think he was taking advantage of the delay in Walmart’s check verification and racking up his interest buildup on his savings, then turning around and paying back the original amount prior to interest accumulation.
Something like that anyways, that’s the loose understanding I came away with.
Edit: Damn good question though, if someone has a better explanation, by all means please share and educate us…
It could be the business was borderline insolvent and cash from the checks acted as a short term loan from Walmart.
That or he was trying to create the create the illusion of cash flow in order to get the business to qualify for certain kinds of loans. The money from the loans he could subsequently embezzled. Then if the company went bankrupt the creditors would be at a loss.
You’re most likely right. No checking account at any bank has an interest rate that’s going to pay enough interest in 2 days to make such a scheme worthwhile, even if the sums were an order of magnitude greater than the numbers GP quotes. Especially with a $6 check processing fee, which is itself a scam.
If I had to spot a guess, he was taking advantage of his savings account building interest, he had me and at least 2 other employees doing this. Walmart would charge $6 for the check processing fees, so…
(1500 - 6) * 3 employees = $4482, every week.
I think he was taking advantage of the delay in Walmart’s check verification and racking up his interest buildup on his savings, then turning around and paying back the original amount prior to interest accumulation.
Something like that anyways, that’s the loose understanding I came away with.
Edit: Damn good question though, if someone has a better explanation, by all means please share and educate us…
It could be the business was borderline insolvent and cash from the checks acted as a short term loan from Walmart.
That or he was trying to create the create the illusion of cash flow in order to get the business to qualify for certain kinds of loans. The money from the loans he could subsequently embezzled. Then if the company went bankrupt the creditors would be at a loss.
You’re most likely right. No checking account at any bank has an interest rate that’s going to pay enough interest in 2 days to make such a scheme worthwhile, even if the sums were an order of magnitude greater than the numbers GP quotes. Especially with a $6 check processing fee, which is itself a scam.
It can’t have been for the interest.