prepayment

Everyday

1. (money) A prepayment is money you pay before you get something, instead of afterwards. tree →
2. It can also mean paying back part of a loan early, before it is due. tree →

In the lessons

In money lessons, prepayment explains pay-as-you-go phones, prepayment gas and electricity meters (topped up with a card or key in the UK) and deposits for holidays. In maths, a prepayment is subtracted from the total cost to find what is left to pay. Phrases: "prepayment meter", "prepayment required".

Examples

• Prepayment is required, so you must pay when you book. tree →
• Our flat has a prepayment meter for the electricity. tree →
• Mum topped up the prepayment card at the shop. tree →
• The trip costs £60; after a £20 prepayment we still owe £40. tree →
• Some restaurants ask for a prepayment for big parties. tree →
• Prepayment means you pay first and get the item later. tree →
• My phone works on prepayment, so I buy credit before I use it. tree →

Note

Countable or uncountable: "a prepayment of £20", "prepayment is required". Verb: prepay (prepaid). In maths, prepayment reduces the amount still owed: remaining = total − prepayment. A deposit is a kind of prepayment.