Most online payday lenders require you to fax in a copy of your driver's license, your most recent bank account statement and a voided check. They do this to verify your identity. However, with a “faxless” payday loan, this is no longer required. (Unlike conventional lenders, payday lenders do not look at your monthly expenses or your ability to repay the loan.)

So how do they get the needed information? By having you call it in to them on the phone. One thing to note however is that if it's faxless, the payday lender will still need a bank statement emailed or faxed from your bank. If it’s a fax, they will do it for a small fee. The other consideration is that the payday lender will need to call your employer to verify employment. They are looking for proof of income from employment or government benefits, such as Social Security or disability payments. If you would rather not have your employer know about your loan application, you could fax a pay stub instead.

The way many payday loan lenders operate is by having a representative contact you within a few minutes of submitting your application to confirm your details and complete the processing of your request. So, the majority of payday loans are now being processed without any faxing at all. This is a positive development, as it has made it much easier for consumers to get a payday loan.