Meaning of the word prepayment in English

What does prepayment mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

prepayment

US /ˌpriːˈpeɪ.mənt/
UK /ˌpriːˈpeɪ.mənt/

Noun

1.

an arrangement in which a service or product is paid for, or partly paid for, before it is used or obtained, or the amount that is paid:

Example:
The electricity supplier hopes to introduce a prepayment system soon.
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