Cost of service is an important factor that you need to consider when choosing an SMS
gateway provider for your SMS application. Typically, SMS gateway providers can be divided
into 2 categories in terms of how they require you to pay for their SMS service:
• Credit-based
You purchase a number of credits from the SMS gateway provider. Sending one SMS
message will cost you one or more credits, depending on the country you send the SMS
message to. For example, sending an SMS text message to India might cost you one credit
while sending an SMS text message to the United States might cost you two credits.
• SMS-based
You purchase a number of SMS messages from the SMS gateway provider. The cost for
sending one SMS message is the same for all destinations. For example, if you purchase ten
SMS messages, you can send at most ten SMS messages no matter the destination is India
or the United States.
In general:
Cost per credit (credit-based payment) < Cost per SMS message (SMS-based payment)
So, is credit-based payment always better? Not definitely. Let's take a look at the following
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