High Quality Content by WIKIPEDIA articles! Prepaid refers to services paid for in advance. Examples include tolls, pay as you go cell phones, and stored-value cards such as gift cards and preloaded credit cards. Prepaid accounts are assets, and they are increased by debiting the account(s). Prepaid services and goods are sometimes targeted to marginal customers by retailers. Prepaid options can have substantial cost reductions over postpaid counterparts because they allow customers to monitor and budget usage in advance. Unlike postpaid or contract based services, prepaid accounts can be obtained with cash. As a result, they can be established by people who have minimal identification or poor credit ratings. Minors, immigrants, students, defaulters, and those on low incomes are typical prepaid customers.

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