What does the term "Pay Before" refer to in card payments?

The term "Pay Before" in card payments specifically refers to payments that are made upfront, typically using prepaid or stored-value cards. This type of payment mechanism requires users to load funds onto a card in advance of making a transaction. The funds available on the card must be used for purchasing goods or services, and once the balance is depleted, no further purchases can be made until more funds are added to the card.

By using prepaid or stored-value cards, consumers can control their spending by limiting how much money is available on the card. This method can also enhance security, as these cards often do not require linking to a bank account or credit line. In various contexts, "Pay Before" can be advantageous, especially for budgeting or managing finances, as the user is effectively prepaying for their transactions.

The other options do not align with the definition of "Pay Before." For instance, payments made at the point of sale using credit cards or payments made after the receipt of goods suggest different transaction mechanics, while payments made exclusively online do not encompass all situations where "Pay Before" can apply. Therefore, the reference to prepaid or stored-value cards accurately captures the essence of "Pay Before" payments.