PrePay (prepay, prepayment) — a payment model in which the customer first deposits money and only then uses a product or service. Payments are made from a balance funded in advance: funds are gradually deducted as the service is used.
PrePay is used in advertising, mobile communications, cloud services, and other areas where services can be paid for in advance.
How PrePay works
With prepayment, you first need to fund the balance with the required amount. After that, the service begins deducting money from it for the services received. If the funds run out, the service is suspended until the next top-up.
Some services offer automatic top-ups. In this case, money is automatically added from the linked card when the balance falls to a certain level.
When working with a large network, PrePay has its own drawback: money must be distributed among Ads Managers in advance. If an account is banned or simply no longer used, part of the budget may remain in its balance. What happens next depends on the platform — some allow the remaining funds to be refunded, while others may make the refund process difficult.
