A payday loan (aka “small dollar loan” or “deferred deposit transaction”and “deferred presentment transaction” or “payday advance”) is a short-term loan, often for $500 or less; repayment is typically due on the borrower’s next payday. When a borrower takes out a payday loan, he typically has to give the lender access to his checking account or write a post-dated check for the full balance that the lender can deposit when the loan is due.