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CashD vs payday loans
A payday loan is credit, with fees that add up fast. CashD lets you withdraw pay you’ve already earned, for one small fee.
By [Author — Gary to supply]Reviewed by [Reviewer]Updated
- Worse than CashD
 Your pay | Payday loanCredit | |
|---|---|---|
| Cost on $500Over one month | $9.951.99% fee | $12020% + 4% a month |
| What it isWhose money it is | Pay you’ve already earned | Worse than CashD: A loan you repay |
| InterestOr monthly fees | None | Worse than CashD: Up to 4% a month |
| Credit checkBefore you get it | None | Worse than CashD: Usually |
| If you can’t repayWhat happens next | Nothing to repay: it comes out of your pay | Worse than CashD: Default fees, up to twice the amount borrowed |
| MaximumHow much you can get | Up to 50% of earned pay | Up to $2,000 |
On $500 over one month. Payday loan fees are the legal maximums for small amount credit contracts.
Key points
- A payday loan is a small loan of up to $2,000, repaid over 16 days to a year.
- Lenders can charge a 20% establishment fee plus 4% a month. On $500 for one month, that’s $120.
- CashD isn’t a loan. You withdraw up to 50% of the pay you’ve already earned, for a 1.99% fee: $9.95 on $500.
- No interest, no credit check and nothing to default on.
The short answer
A payday loan gives you money you haven’t earned yet, then charges you to pay it back. CashD gives you early access to pay you have earned, and takes it back out of your next pay through payroll.
One is debt. The other is your own pay, sooner.
How payday loans work in Australia
Payday loans are what the law calls small amount credit contracts. You can borrow up to $2,000, and you repay it over 16 days to a year.
- Lenders can charge a one-off establishment fee of up to 20% of the amount you borrow.
- On top of that, they can charge a monthly fee of up to 4% of the amount you borrow.
- If you miss a repayment, they can add default fees, up to twice the amount you borrowed.
- Your repayments can’t be more than 10% of your after-tax income.
Source: Moneysmart, payday loans, [DATE]. To be verified before launch.
What a $500 payday loan really costs
Say a $500 bill turns up and you take a payday loan over one month. The establishment fee is $100 and the monthly fee is $20, so you pay back $620.
With CashD, you withdraw $500 of pay you’ve already earned and pay a $9.95 fee. $509.95 comes out of your next pay, and that’s the end of it.
Longer loans cost more. Moneysmart’s example of a $2,000 payday loan over a year comes to about $3,360 in repayments, which is $1,360 in fees.
Source: Moneysmart, [DATE]. CashD fee: 1.99% per withdrawal.
How earned wage access is different
Earned wage access works through your employer. CashD connects to the payroll and HR software your employer already uses, so it knows what you’ve earned so far this pay period.
- You can withdraw up to 50% of what you’ve earned.
- There’s one fee of 1.99% per withdrawal. No interest and no late fees.
- There’s no credit check, and it doesn’t affect your credit rating.
- On payday, what you withdrew and the fee come out through payroll. Nothing to repay, nothing to chase.
Pay advance apps work differently again: they lend to you directly. See CashD vs early wage access.
Other low-cost options
If your employer isn’t with CashD yet, or you need more than you’ve earned, there are cheaper places to start than a payday loan.
- A No Interest Loan (NILs) of up to $2,000 for essentials, if you’re eligible.
- An advance on your Centrelink payment, if you receive one.
- A payment plan or hardship arrangement with the business you owe.
If money’s tight, the National Debt Helpline is free and confidential: 1800 007 007.
Source: Moneysmart, [DATE].
Getting started
Access your pay in four steps.
- 01
Check your employer
Find out if your employer is already with CashD.
- 02
We’ll invite them
If they’re not signed up yet, we’ll contact them and keep you updated.
- 03
Set up your account
You’ll get an onboarding email. No credit check, and we never need access to your bank.
- 04
Download the app
See your earned pay in real time and withdraw it when you need it.
FAQs
Questions people ask before they start.
Is CashD a payday loan?
No. A payday loan is credit you repay with fees on top. CashD is earned wage access: you’re withdrawing pay you’ve already earned. There’s no interest, no credit check and nothing to default on.
How much does a payday loan cost in Australia?
Lenders can charge an establishment fee of up to 20% of the amount you borrow, plus up to 4% a month. On $500 over one month, that’s $120 in fees.
Will CashD affect my credit rating?
No. There’s no credit check to use CashD and no impact on your credit rating.
What happens if I can’t repay a payday loan?
The lender can charge default fees, up to twice the amount you borrowed. Talk to them about a hardship arrangement early, and call the National Debt Helpline on 1800 007 007 for free advice.
Can I use CashD if my employer isn’t signed up?
Not yet, but it’s easy to start. Tell us where you work and we’ll contact your employer for you and keep you updated.
What’s the difference between earned wage access and a pay advance app?
Pay advance apps lend you money directly, usually for a percentage fee. Earned wage access works through your employer’s payroll, so you only ever access pay you’ve already earned.
Check my employer
See if your employer is with CashD.
Tell us where you work. If your employer isn’t signed up yet, we’ll contact them for you and keep you updated.
- No credit check
- We never need access to your bank
- Up to 50% of your earned pay, instantly
- One small fee of 1.99% per withdrawal