Prepaid Credit

Now here is the interesting thing about Prepaid Credit: Its actually your asset, which means its a debit to your personal accounts.

When you make payment for a RM10 prepaid card from Maxis, you are, in essence paying the service provider (e.g. Maxis) money in advance for services (SMS, Talktime, etc..) which you will use later in the month, or week, dependin how much you use it. So by paying them in advance, Maxis actually OWES you RM10 worth of SMS, Talktime and etc... So if anyone owes you anything, that is actually an asset to you.

Why then is it called credit? Its called credit simply because, it is a credit transaction to Maxis. When Maxis owes you services, their liabilities increase (credit!). So the more you use your phone, their liability reduces, the happier they are, because they don't owe you anything anymore!

So prepaid credit is called credit because it is an increase in credit for the service provider (like Maxis) when you buy their prepaid card.