What is Prepaid Wireless?
What is prepaid wireless?
The answer to this question might seem obvious for those
already familiar with the history of the no contract wireless
prepaid, no contract wireless has had more and more awareness in the
mainstream in recent years, it surprisingly still has common
misconceptions and general lack of clarity and confusion.
I still find it very
common for friends and family who, although they are familiar with
terminology, don't specifically understand how it works, or its
benefits compared to postpaid. I've been saying this for
years, and now it's clearly obvious that before too long prepaid will
be the dominant way that
customers interact with cell phones phones. The benefits of
contract is now quickly disappearing!
explain "what is prepaid wireless," this section focuses on the primary
difference between prepaid and postpaid plans, which is the payment
method. To learn about the benefits and advantages, you can
check out the Why Prepaid Wireless?
which goes into a lot of detail that I'm sure would be of interest to
It's easiest to think of prepaid
wireless as a payment option. So when you think about the
question "what is prepaid wireless," think about paying for services
before you use them, or pay-as-you-go, and no overages are possible.
You could easily think
of it as being similar to a gift card, and comparing it
to a credit card, which in this case would be the counterpart to a
postpaid plan. In other words, when using credit card, you
make the purchase first (ex. buy some groceries), and at the end of the
month you receive a bill for what you spent in the previous month.
Then you've got a couple of weeks to pay your bill before you
start incurring interest and/or penalties. So, at the heart
of it, you don't need to have the money at the time of purchase; you
can pay for it later.
flip side, when using a gift card, in order to pay for your groceries,
you have to have enough money available on the gift card at the time of
purchase. In other words, you don't receive a bill.
This is very similar to how a debit
card works, however, with
features like overdraft protection, and other such tools, the example
becomes a little less black and white.
essentially, before you can make a call, download a ring tone, buy a
wallpaper, or consume any other service, you have to have the funds
available in your prepaid account balance. So with a
postpaid plan, if you make an international call, or go over your
minutes, you'll be charged on your next month's bill.
With prepaid wireless, you must have those funds available at
the time of use. If you don't, your call will be cut off when
you run out of funds, or you won't be able to make the call at all if
your prepaid account balance is at zero. Although this does
have its disadvantages (i.e. getting cut off in the middle of a
chargeable call), you don't have to worry
about large, unexpected bills at the end of the month.
The reason why prepaid has been taking off in an incredible way in
recent years is its deserving evolution away from the stigma that it
has be plagued with. It was originally targeted towards low
income, or people with poor credit. That, coupled with lower
end phones, made it undesirable in the mainstream. This is
clearly no longer the case as you'll discover on the many hundreds of
pages on this site!
are a number of ways to conveniently add money to your prepaid account
balance. Check out the Adding Money
section for all the
details. You should now feel comfortable explaining to your
friends "what is prepaid wireless." If there is anything at
all that is unclear, or any questions that you have that I can help
with, please don't hesitate to Contact Me
it or not, there is a way to get yourself into trouble by actually
[getting suckered into] signing a Prepaid
What Is Prepaid Wireless?