What Is A Prepaid Service Plan?

by | Mar 4, 2014 | Business

There are services available to a consumer that requires payment up front; these are called “prepaid service plans”. They are also commonly called “pay as you go” plans and are very popular for cell phones. The beauty of these plans is the fact that the consumer is given control over his or her expenses, this makes budget management easier.

Although there are a number of services that can be availed of with these prepaid plans, cellular phone service is perhaps the most well known. An idea recharge requires that the cell phone owner purchases the service SIM and then select the amount of charge and the method of payment for a given number of airtime minutes. Once the subscriber has bought the minutes either online or from a local vendor, the phone can be used for making and receiving calls and texts and in the case of smart phones, access to the internet is also an available service.

Although prepaid service plans for cellular services are by far the most common, in some areas it is also possible to access natural gas and electricity in the same manner. The system is somewhat the same; the customer purchases the “unit” in advance and then uses it until it is time to recharge the system.

There are two types of cellular phone plans commonly available. A standard postpaid plan demands that the subscriber commit to a specified amount of money every period, usually every month. The subscriber will be charged this amount regardless of whether the time was actually consumed or not. In the case of an idea recharge, the phone owner is not obliged to any monthly payments, when there are no longer any units available; it is a matter of recharging the phone from one of a number of sources. A prepaid service plan is ideal for those who do not use their phone extensively during the month and may not have a credit card which is mandatory upon application.

There are now many prepaid service providers and selecting the right one can take some time. There is a great deal of competition in the market, not only for the phone line but for the idea recharge. In most cases people are turning to the internet to arrange a recharge for their phone.

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