My concern that this may be fradulent and I want to know if a legitimate payday lender would require this up front cash fee with a money gram

Is it legal for a payday lender to request up front fees by the use of a money gram to get a loan?

Desperate times call for desperate measures.
This is often referred to as an arrangement fee..

Is the a place that offered you something unsolicited in an email... or is this a business you walked into and made the first move with?

Is the a place that offered you something unsolicited in an email... or is this a business you walked into and made the first move with?I did it on line. And I have never heard of US bank payday installment loans.

They aren't uncommon, BUT They all require significant collateral (like a clear car title worth more than the loan) and charge very high rates. They cater exclusively to the people with bad or no credit, BUT I've never heard of ANY doing it online. But since I don't run in those circles maybe I just wasn't aware they did.

If you aren't in the USA... then significant read flags are waving. Collateral and national borders are deal killers for most real banks.

Pay day lenders generally take a post dated check, but logically if you can secure a loan with cash, or a money order with a fee, you don't need a payday loan then do you?

Even if it's not a scam the conditions make it very high risk, with no upside. If you are outside of the US, I can see YOU being a high risk to a US bank.

This is a common and well known loan fraud, it uses either money gram or western union, since once the money is sent, you can never get it back.

https://www.scamwarners.com/forum/viewtopic.php?f=3&t=3225

No there is no fees up front but would be paid though your payments, In fact most payday loans deposit the money directly to your checking account, and also directly withdraw monthly payments

So you went online to request a loan and they are asking for a fee upfront to process the loan? I would be wary of ANY payday lenders. These lenders target the desperate, generally charge high interest and fees.

US Bank is not a Pay Day lender, they are a large bank, credit card and loan service. Are you sure of the name?