While both a payday loan and cash advance are short-term, highly expensive ways of borrowing money, they differ in that a cash advance is a loan obtained from one’s credit card (usually through an ATM or bank), whereas a payday loan is obtained through a standalone lender. Additionally, the terms of a cash advance often involve an upfront fee (up to 8% of the advance) and interest that begins accruing immediately. The terms of a payday loan are based upon fees – ranging from $10-30 for every $100 borrower. If the borrower doesn’t pay off the loan by the due date, they are charged additional fees that tack on to the total amount owed.