Definition

A payment made before it is due or before receiving a service or product.

Example

The company requires a prepayment before starting the project.

Conversation

Have you heard about the new policy on prepayment for our gym membership?

Yeah, I saw that! It seems like a smart way to secure your spot.

I think it might help us save some money in the long run.

Definitely! I’m considering making a prepayment for the whole year.

Synonyms & Antonyms

Root Explanation

Prepayment → It is formed from "pre-" (meaning before) and "payment" (from Old French *paiment*, meaning the act of paying). The word "prepayment" refers to the act of paying before a service or product is received.

Memory Tip

Think of paying 'before' ('pre-') receiving something, which is what prepayment means.

Visually Confused Words