A payday loan, or a paycheck advance, is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. Each state has it's rules and regulations regarding the administration of payday loans.
A Payday location provides a short-term unsecured loan to be repaid at the borrower's next pay day. Sometimes verification of employment or income is involved and some times it's not. This is dependent on the locations policies for underwriting.
After borrowing the money, the borrower writes a postdated check to the lender in the full amount of the loan plus fees. On the next pay day, the borrower is expected to return to the store to repay the loan in person. If the borrower does not repay the loan in person, the lender may redeem the check along with a penalty and fees.
Payday loans have moved to the internet with many companies now taking applications via fax or online form. Read carefully the terms of service before agreeing to this type of loan.