Online payday loan fees

Online payday loan fees are typically higher than those charged at “brick and mortars” also known as a storefront or walk in type operation. The reasons are stated in the list below.

• Default rates (non paying clients) for Internet payday loan companies are higher than for brick-n-mortars. Typically double those of a storefront.
• Consumers are willing to pay more for convenience, which includes borrowing from home or work.
• Many online customers are in states/provinces that do not offer payday loans in brick-n-mortars.
• Some online payday loan companies are undercapitalized and not able to fund all the applications they receive. They raise their fees in an attempt to maximize their ROI (return on investment) by serving consumers willing to pay higher fees.

Payday loan fees in brick-n-mortars average $17 per $100. Of course this fee is dependent on the state/province the store is physically located in. Currently, Internet payday loan fees range from a low of $15 per $100 loaned to as high as $40 per $100 loaned. Internet fees average $26.75 per $100. Six months ago the average was closer to $28 per $100 for online loans.

Much like the brick-n-mortars, loan amounts for Internet payday loans range from a low of $300 to a high of $2500. $300 to $500 is typical in the current environment.

Competition is having an impact on the average fee.  More and more payday loan companies are offering their product online. Many of these companies, having both an online presence and a storefront, restrict loans to consumers residing in the state/province in which they are licensed. This brings down the averages. Those Internet payday loan companies willing to fund loans from anywhere have much higher fee averages. Especially when they are willing to serve customers in Canada, North Carolina, Texas, New York, Georgia, and New Jersey.