What is prepaid? Easily explained
When it comes to cell phones and cell phone providers, the term "prepaid" is often used. We will explain what it is and whether prepaid is worthwhile for you or whether you are better served with a classic contract.
Prepaid: what is it?
The English term "prepaid" can be translated as "prepaid" or "prepayment". It is a payment model in which the customer buys credit in advance. He can consume that later according to his own needs.
- The prepaid model is mainly used for SIM cards for mobile telephony. There are several prepaid providers in Germany. The best known are Aldi Talk, Ja Mobil, Edeka Mobil, Congstar, Fonic and Blau.de.
- Prepaid using the example of Edeka Mobil: Order a SIM card online on the Edeka Mobil website or buy it on site in an Edeka market. The SIM card with a starting credit of 10 euros also costs 10 euros.
- Insert the SIM card into your cell phone, pay 9 cents per minute or SMS in this tariff. Alternatively, you can also book various flat rates. All costs incurred will be deducted directly from your credit.
- Once you have used up all your credit, you can no longer make calls or write SMS. You can of course still receive calls and messages. You can either have new credit debited from your account online at Edeka Mobil or buy it locally at the Edeka market as a top-up code.
The advantages of prepaid
- The biggest advantage is the cost. Prepaid providers often have very cheap flat rates on offer.
- In addition, you are not bound to any contract term. If you no longer want to use the SIM card, you can simply use up the credit and throw the card away.
- By eliminating a basic fee, you also have full cost control.
The disadvantages of prepaid
- Once your credit has been used up, you can neither go online nor make calls. However, you will be notified by SMS as soon as your credit runs out.
- Many providers also allow automatic top-up by direct debit. However, the meaning of the prepaid payment model is lost.
- The only big disadvantage is the blocked functions. Many prepaid users do not have access to the 4G network and cannot create a hotspot on their smartphone. Such functions are often reserved for contract customers.
Cut the prepaid SIM card yourself - how it works
In the next practical tip, we will show you the best prepaid providers in comparison.