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Postpaid plans allow users to prepay for a set number of minutes each month at a lower rate than prepaid plans, with insurance against loss of service. Approval and credit checks are required, and excess fees can be high. Different fees apply for different services, with peak and off-peak rates.
Postpaid plans are billing agreements that cell phone users have with service providers to prepay for the number of minutes they will use their phones each month. They are the alternative to prepaid plans where users pay a certain number of minutes ahead of time and often need to prepay for additional minutes to prevent service from being interrupted or suspended.
Users of postpaid plans often purchase them because they offer several distinct advantages over prepaid plans. The monthly fee charged by mobile operators for postpaid plans is generally charged at a lower rate per minute than for prepaid plans. Postpay also provides reasonably good insurance against temporary or permanent loss of service within the limits of the plan. Also, if a prepaid phone is lost or stolen, the service provider usually has a record of the phone’s serial number, allowing it to block service to and from the phone once the loss is reported. In the same situation, prepaid service for a phone would continue to disappear by the minute until it was used.
To take advantage of postpaid plans, potential users typically have to wait to receive access to the service until an application is approved and they pass some sort of credit check – this can usually be done during a short visit to the store or through an online application. Prepaid service, on the other hand, usually starts as soon as the carrier receives payment for the service. The urgency of the service need can therefore be a determining factor in the user’s decision on what type of billing arrangement to make.
The terms of postpaid plans are often much more complex than simply paying for a certain number of minutes each month. Postpaid customers typically receive an allotment of minutes for a flat monthly fee and then pay for additional minutes used on overage charges. Excess fees vary between carriers, but can be charged at high rates.
Most mobile phone operators also charge different fees for different ways of using their service. Therefore, users pay different amounts to make phone calls, send and receive text messages, use email, and access the Internet. Carriers often provide postpaid customers with an access code that allows them to track their usage over the phone or by logging into an online user site.
The minutes that postpaid customers incur charges are generally divided into minutes used during peak hours and off-peak periods. Peak usage fees are usually charged at a flat rate. Charges for off-peak usage can vary on a graduated scale from “no charge at any time” to charges approaching the monthly rate for longer traffic usage times. Typical off-peak billing rate categories include night and night minutes, weekend minutes, mobile-to-mobile minutes, and anytime minutes. Some wireless carriers offer unlimited service for a flat monthly fee, which is often quite high.
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