I am looking into buying an iphone but one thing that troubles me is finding a human to answer my question. Id like to know if an in-use pay as you go SIM card is compatable with the iphone?
I've activated iPhones on a prepaid SIM before. They were O2 wireless that's compatible with AT&T network, but also you could find on Google how to unlock for other carriers.
To answer your question, you cannot use the iPhone with any AT&T prepaid plan.
There's tons of YouTube vids of people activating iPhones on Prepaid AT&T and compatible SIM cards. No jailbreaking and no unlocking necessary. It CAN be done. Stick the SIM in the phone and try it.
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