Online payday loans work just like regular payday loans from a retail storefront. The only exception is that the storefront is the website. Time periods for loans are the same as land loans, usually two weeks or until your next payday with your paying an interest charge and providing financial information. Sometimes longer loan periods like 60 days can be offered. As a rule, the loan can be extended, renewed or rolled over by paying an additional fee. In most cases, you may obtain your loan the next day by ACH deposit. Some websites, however, may offer you the same day loan.

Interest rates range between 390% and 780%. Usually, this amounts to fees per $100 of $10 to $30. Your first loan can vary from $250 to $1500 depending on your income and the website you lend from. The first loan can be free but, in this case, you are charged a little more in fees, about $25 per $100 borrowed, with a medium maximum first loan of about $300.

Online payday loans are similar to land based payday loans in their work. There are usually the following rules to be observed in order to obtain an online payday loan:

• You must give proof of income, (at least $1000 a month, but not always that much.)
• You have to provide a duplicate of a recent bank statement with a positive balance, either by fax or over the internet.
• You have to meet age requirements
• You are allowed to obtain restricted amounts of payday loans in a current period.

You will have approval very fast, sometimes, even instantly.

To settle the loan, you can pay the entire balance due. You may also pay the interest and roll the balance with a new fee, or pay down by paying the finance fee plus a portion of the principal and then renew at the lower rate. Subject to the laws of applicable state you can do this several times.

The payday loan stores have access to information on any other loans you may get. There is possibility that if you have rolled a loan too many times or you have too many loans, that you may have to just pay it off at that time. There may be a "timeout" between loans. All the details and features should be made clear by your payday lender terms of services.

So, online payday loans are similar to land loans, moreover they are much easier for you to get and can save time.