There are two main methods when it comes to payment of a payday loan.

The first payment method is for the payday loan company to automatically access your bank account and deduct the payment amount on your payday. This is possible as you would have to grant them access during the loan application process.

While it might appear risky to allow a third party to access your bank account, if you think about it carefully, this is just like any other auto-order or auto-payment that you might have set-up on your bank account or even credit card.  

The important thing is to make sure that there are enough funds to cover your loan when the deduction is made. This is usually not a problem as the deduction will be made when your paycheck is in. 

From the point of view of the payday loan company, they will want to verify your employment and income status to make sure that the income you declared is real. Things they will confirm include the company you are working for, your income level and the date you receive your paycheck. Having this process reduces the likelihood of them being unable to process your payment on the due date.

The second payment method involves issuing a check from your own checking account for the amount owed. This check is post-dated to your payday and will only be deposited on your payday. With this method, you do not need to grant the payday loan company direct access to your bank account.