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What are the merits and demerits of payday loans and poker merchant accounts?

People crumble in times of financial crisis because they will not have planned their budget. The car you own might be in need of quick service. The money from the insurance company will again take a longer time. The fridge is in immediate need of repair. The customer will be lacking sufficient money by the end of the month. You might also be in a situation in which you want to purchase a particular thing but lacks sufficient finance.

Pay day loans are considered as a solution to all these issues. This is a type of short termed loan in which the customer is given the loan till the next day of payment. Most of the customers are given hundred dollars to one thousand dollars for a small period of time. In order to qualify to get a pay day loan, one has to have a regular income and an active account. The customers will have to show the bank a good pay check stub. The banks will contact the customers to verify whether the applicant have a regular income.  

The pay day loan is a loan which is unsecured. The customers will not provide the bank with any kind of security. There is only a contractual promise that exists between the bank and the customer.  This is a kind of loan where there is only a signature as the security. In most of the cases, this loan is given for a short term.

Pay day loans can be given to customers if they are in need of money for an occasional period. But the customers must take note that this kind of loan is really expensive. If the customers have to get hundred dollars for a time span of two weeks, the rate of interest will be about fifteen percent. In most of the cases, the card issuing firm will have to give a post dated check. Once the day of payment come, the customer will have to present himself at the office and give the entire amount in cash. Once you repay the complete amount, the bank will return the check back to you.

There are lot of demerits for the loan. If the customer fails to pay the entire amount in the provided time, the bank might allow him to extend the term of the repayment. But the customer will have to pay the amount of interest accurately. The customers will have to pay a higher interest of about thirty percent for four weeks.  If the customers fail to present him at the bank, they will get your check deposited. If the check got bounced because of the lack of sufficient money, the customers will have to make all kinds of payments such as bank fee for the check returned and also the charges for the bank to get the money owed. As it is legally wrong to produce a bad check, the bank can take a legal action against the customer.

The customer must take extreme care while taking this loan and should take it only in case of utmost urgency. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.