The main difference is that with prepaid phones, payment for service is made before use.

The alternative billing method (and what is commonly referred to as a mobile contract) is the postpaid mobile phone, where a user enters into a long-term contract (lasting 12, 18, or 24 months) or short-term contract (also commonly referred to as a rolling contract or a 30-day contract) and billing arrangement with a mobile phone operator ( mobile virtual network operator or mobile network operator).Ī prepaid mobile phone provides most of the services offered by a mobile phone operator. ('Pay-as-you-go', 'PAYG', and similar terms are also used for other non-telecommunications services paid for by advance deposit.)

Users can top up their credit at any time using a variety of payment mechanisms. If there is no credit, then access is denied by the cellular network/ Intelligent Network. The purchased credit is used to pay for telecommunications services at the point the service is accessed or consumed. Typical sign showing where top-ups can be made.Ī prepaid mobile device (also commonly referred to as pay-as-you-go ( PAYG), pay-as-you-talk, pay and go, go-phone or prepay) is a mobile device such as a phone for which credit is purchased in advance of service use.

Verizon prepaid sim card