When looking at the pricing structure of payday loans, lenders across the country argue their high interest rates are directly related to the processing costs of the loans. If they were to cut back on the interest of the loans they argue that the loans then would not be profitable for them to fulfill. The money that the lenders are making have to be higher than the loan processing costs to insure the lenders sufficent revenue. Based on reports on some of the publicly traded payday loan companies some of the loan losses these companies incure can average 15% or more of the overall loan revenue.