DailyPay Review: How It Works, Fees and Is It Worth It?

DailyPay allows workers to access wages they’ve already earned but haven't yet been paid. The service is only available through participating employers and doesn’t require a credit check or charge interest. Some users turn to services like DailyPay instead of borrowing options like personal loans for short-term cash needs. Learn how DailyPay works and whether it could be a good fit for you.

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Quick Take

• DailyPay has minimal fees and instant transfers come with a nominal charge.

• No need to worry about soft or hard inquiries on your credit — DailyPay doesn't run those.

• If you’re unfamiliar with these services, it may help to understand what a cash advance is and how earned wage access differs.

What Is DailyPay?

DailyPay is an earned wage access platform founded in 2005 and used by more than five million employees each day. It allows workers to access wages they’ve already earned but have not been paid. The advance is automatically repaid when your next paycheck arrives.

How DailyPay Works

Here’s a look at some of the top features of DailyPay:

• Earned wage access model: DailyPay is not considered a loan but allows people to withdraw earned wages. As you work, your earned income becomes a part of your daily balance.

• Transfer options: Funds can be received within one to three business days. If you want immediate access, then you must pay a transfer fee of $3.49.

• Repayment: Whatever amount was withdrawn, plus any fees will be deducted from your next paycheck.

• Credit check: There is no credit check with DailyPay.

Costs and Fees of DailyPay

DailyPay has minimal fees. Here are two possible fees that you may run into:

• Instant transfer fee: If you want to have access to funds immediately, you will pay a fee of $3.99.

• ATM fee: If you use DailyPay at an ATM outside of Allpoint ATMs, you will incur a fee of $2.50.

Pros and Cons of DailyPay

Before using DailyPay, it’s helpful to understand both the benefits and the potential drawbacks.

DailyPay Eligibility Requirements

To use DailyPay, you must meet the following requirements:

• Your employer must have DailyPay as part of their payroll system.

• You must be 18 years old.

• You must be signed up for direct deposits.

• You must be an hourly or salaried employee — some executives cannot qualify.

• You must provide your email address and phone number.

• You must have a linked bank account and provide your employer ID or Social Security number.

How To Use DailyPay

Getting started with DailyPay is simple. You can follow these steps:

1. Download and sign up for the DailyPay app.

2. Verify your identity by providing your employer ID. You may also need to complete multifactor authorization.

3. Link the bank account you want your money sent to.

4. Track your earnings and update your available balance.

5. You can request a transfer and choose the speed of your funding.

DailyPay vs. Other Earned Wage Access Apps

To see whether DailyPay is the right fit, it helps to compare it with other earned wage access and cash advance services.

Payactiv

To use Payactiv, your employer must be enrolled. Payactiv doesn’t conduct hard credit checks, and the service has nominal fees for instant transfers. However, Payactive allows you to access 50% of the wages you earn, while DailyPay users can get 100% of their earned wages.

Dave

Dave is a cash advance app that isn’t tied to an employer’s payroll. It allows users to get a cash advance of up to $500. Dave is best for short-term cash needs, while DailyPay will allow you to access more money depending on how much you have earned during a pay period.

EarnIn

Unlike DailyPay, Earnin doesn’t require employer participation. Earnin has no fees, and you can access up to $150 per day. DailyPay will allow you to withdraw more than the daily cap of Earnin.

Who DailyPay Is Best For

DailyPay may be a good fit for people in the following situations:

• People who want to avoid debt — DailyPay charges no interest or late fees

• People who want to avoid traditional payday loans

• Employees whose employers offer DailyPay

• Workers with fluctuating hours

Final Take

DailyPay is available only if your employer offers the service. The platform allows workers to withdraw wages they’ve already earned but haven’t yet been paid. There’s no credit check required to use DailyPay. However, because advances are repaid from your next paycheck, your upcoming pay may be smaller.

If your employer doesn’t offer the service, you may want to consider getting a cash advance that can provide similar short-term access to funds.

DailyPay FAQs

Still wondering how DailyPay works? These FAQs cover common questions about fees, eligibility and repayment.

Is DailyPay legitimate?

DailyPay is a legitimate company that partners with employers so that employees can access their earned wages.

Does DailyPay charge interest?

DailyPay doesn’t charge interest, but will charge fees for instant funding.

Does DailyPay affect your credit?

DailyPay doesn’t pull your credit or report timely payments to the credit bureau.

How much can I access?

You can access your earned but unpaid wages with DailyPay.

Does my employer need to participate?

Your employer must have DailyPay in order for you to participate.

Photo credit: coffeekai / iStock