Prepaid/ˌpriːˈpeɪd/ Definition 1 of 2Pro Tip 1/3Prior Payment Used when services or goods are paid for before receiving them, avoiding pay-at-time stress. He had a prepaid meal plan at college. Pro Tip 2/3Convenience Factor Prepaid items provide convenience, ensuring service access without immediate transactions. My prepaid subway pass saves time during my daily commute. Pro Tip 3/3Budgeting Tool Prepaid serves as a budgeting tool, controlling spending by limiting usage to the paid amount. I manage my calls with a prepaid cell phone plan.