There are many different types of loans including the payday loan that all fit into the same group of loans. Most payday lenders manage moderate sized stores or franchises, but there are lenders who manage larger stores and companies that offer variations of the payday loan. Some of the larger companies include banks and income tax preparation firms.
There are many banks that offer what is being called the direct deposit advance. The only people who can take advantage of this are people who have their paychecks deposited electronically through that particular bank. With the direct deposit advance a person can get a predetermined amount of small cash. Then when the next direct deposited check is deposited into your bank account the bank has the authorization to remove the cash advanced amount plus a fee for the advanced which is typically between 10-20%.
Now income tax preparation firms are getting into cash advances also. Many major firms like H&R Block have started to partner up with lenders to offer what is being called the refund anticipation loans. What happens is that you go in file your income taxes and you find out how much of a refund you are going to get. Then the firm you have chosen can give you a check for either your refund amount or a percentage of your refund. Then the firm receives however much your refund anticipation check was made for plus a fee.
One thing you need to keep in mind is that payday lenders have found ways around the usury laws that most states enforce. Payday lenders have figured out that if they are operating in a state that has usury laws then they find funding for their payday loans through banks in another state, where the usury laws are not has harsh or non existent.