How does prepaid work? An understandable explanation

If you don't want to get involved in a mobile phone contract, you can use prepaid instead. This practical tip shows you exactly how prepaid works.

Prepaid: How does it work?

In most cases, a mobile phone contract gives you a certain number of free minutes, free SMS and an unrestricted data volume for mobile surfing. You pay a monthly price for this, which is always debited from your account.
It works differently with prepaid: If you buy a SIM card from a prepaid provider, you already have a starting credit there. If you make a call, send an SMS or surf the Internet, the respective price, for example 9 cents per minute, will be deducted from your credit.
If your credit has been used up, you must top it up again. This is done, for example, using prepaid cards that you can get in numerous supermarkets or petrol stations. You can also top up your credit online by direct debit or bank transfer. Upon request, your provider will automatically top up the credit by direct debit from a certain value. However, you will always be informed by SMS.

If you do not use any paid functions such as SMS, calls or mobile surfing, there are no costs or basic fees. You can also book flat rates for phone calls and surfing with prepaid providers. These are often much cheaper than with mobile phone contracts and can be canceled monthly.
Your credit can be viewed at any time. Simply call the code * 100 # to see your current balance. This is also possible online or via the apps of the prepaid providers.
Prepaid guarantees you full control over your costs. This form of payment is therefore also recommended for children's cell phones. Due to the somewhat cheaper prices and the monthly withdrawal from flat rates, the classic mobile phone contracts are only worthwhile in connection with a new smartphone. Otherwise, prepaid providers are often more attractive.

In the next practical tip you will find the best prepaid providers in comparison.