The ins and outs of payday lenders
Payday lending is an industry with global presence and growing numbers. In the UK, it is estimated that 8.2 million loans were taken out from 2011-2012, amounting to about £2.2 billion. In the US, payday loans have an annualized percentage rate between 360% – 780%, for a two-week loan (yes you read those numbers correctly, they aren’t typos).
With these shocking numbers in mind, government and card networks are being more diligent when it comes to payday lenders. As a repercussion, acquirers are hesitant to keep or board these ‘high-risk’ merchants. Let’s take a closer look at the payday loan industry and ways to help you remain compliant and profitable when dealing with these risky businesses.