Prepay refers to prepaid services. Examples include stamps, lawyers, tolls, public transit cards such as Greater London Oyster cards, pay as you use mobile phones, and stored value cards like prepaid gift cards and credit cards.
Prepaid services and goods are sometimes targeted to marginal customers by retailers. Prepaid options can have substantial cost reductions compared to postpaid partners because they allow customers to monitor and budget for up-front usage.
Unlike postpaid services or contracts, prepay accounts can be earned with cash. As a result, they can be established by people who have minimal identification or poor credit ratings. Minors, immigrants, students, arrears, and those with low incomes are typical prepaid customers.
Video Prepayment for service
Prepaid phone
The latest statistics (OECD Communications Outlook 2005) show that 40% of the total mobile phone market in the OECD region consists of prepaid accounts. This service was created by the Portuguese service provider TMN, while looking for ways to increase the penetration of mobile technology by allowing anyone to buy a fully functional mobile phone (usually requires a quick and simple activation process) at a supermarket or an electronics store. By removing the complications inherent in the contract system, it allows the mobile user's user base to grow very quickly. In many countries, this type of service becomes central, shortly after its introduction, by providing both consumers and service providers with considerable advantages over traditional methods. In some countries, such as Italy or Mexico, the prepaid market share can reach 90%. In other countries, such as Finland or South Korea, the figure drops to about 2%.
Prepaid Calls (or even Phonecards) are actually established through two calls, and the first is through 800 Toll Free Numbers, and even some of the major phone companies have them available with international toll-free numbers, or you will find many that offer calls through phone numbers local, usually printed on the back that offers cheaper rates but the first call charges are passed on to you, the consumer.
You place this first call to obtain the provider's platform, and once connected you are authenticated via PIN or as seen in Europe or anywhere else in the world the card may have an electronic chip in it, as you may have seen on American Express Card Blue. If you use a local number provided from home or mobile phone that you pay for the first call cost, you can see this on your bill even if you are not connected. The reason why 800 toll-free is more expensive is because the Prepaid Card Company pays for the effort and even when you just call to check your balance, you only pay when you are actually connected. Many Local Phone Companies do not show local usage so you may not notice that you pay for local calls every time you make an effort. This is not true when you dial a toll free number from the land line but with your cell phone using air time. With most local phone companies you can get call details to support this.
Once you are confirmed you are usually presented with your balance then asked for your destination number (second call), and usually given the remaining time on your card based on the number you just contacted. Then you connect.
With smaller companies beware of hidden costs when prices are too low to be true. They have hidden costs or less advertised costs, such as 3-minute rounding, connection charges, monthly, weekly, daily, or even maintenance fees. Look around when you buy these smaller brands to make sure you know what you're buying.
Pseudonyms that are activated by prepaid services have recently become the attention of law enforcement agencies who consider it a safe haven for criminals and terrorists. As a result, a number of countries including Australia, Germany, Indonesia, Japan, Malaysia, Mozambique, Norway, Singapore, South Africa, Switzerland and Thailand have passed legislation requiring all prepaid subscribers to register their personal information with their mobile operators.
In some countries legislation requires customers to notify their mobile carrier when transferring ownership of a prepaid phone or SIM card.
In Australia, the prepaid registration policy is part of a larger law enforcement initiative that includes the creation and maintenance of the Integrated Public ID Database.
Maps Prepayment for service
Energy
In 1999, Texas deregulated the energy industry by allowing third party affiliates to offer electricity services. As a result, some Texas companies offer the ability to pay for your electricity, with balances leading to the kilowatt hour rate posted. This system is now common in China and Indonesia, as a way to prevent bill payments.
Insurance
Insurance premiums are usually paid on or before the commencement of the insurance period, coverage period, but premiums may be paid in installments during the insurance period.
See also
- Betting advance deposit
External links
- Privacy Rights and Prepay Communication Services in Canada
- Integrated Australian Public Number Database Scheme
References
Source of the article : Wikipedia
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