How Calling Cards Work

Background Information

Calling cards are sold in two versions: billable and prepaid. Billable phone cards have a regular per-minute rate for their service and charge a mandated 30-cent fee per call for pay phone usage. Prepaid cards, on the other hand, sell a preset chunk of time for a certain amount of money--$5 to $50.

One problem with prepaid cards is the fees, which can add up very quickly and eat the value of the card. Also, many of the prepaid card service providers are small, unproven operations that shutter their doors at will. In fact, some sources call prepaid phone cards scams. With billable cards, there are fewer problems since most of these phone charge cards route through reputable, known long-distance providers.

Buying a Phone Card

A caller can obtain a billable phone card through any of the major carriers. Through a website, customers can purchase prepaid cards with set minutes or a phone charge card. Cards work for national and international long distance, depending on the product.

On the other hand, most convenience stores and corner bodegas carry prepaid cards. There may be a colorful chart listing countries and total possible minute amounts near the display. What they don't tell you is that there could be a connection fee, line charge or other surcharge that greatly reduces the amount of minutes available. In other words, the chart times are never accurate. Other hazards include possibly malfunctioning PINs or inactive, busy toll-free access numbers. All of these lead to reduced efficacy and chancy service. According to CNET, "Many of these offers are so bogus that the cards might actually be considered a form of gambling."

How to Use a Calling Card

When you purchase a calling card, the card has a list of access numbers with nearby locations printed on the back. Select the closest (so that it's a local, non-toll call) or use the toll-free number provided. Scratch off the silver foil box to expose the PIN.

Call the number. A recorded greeting will play, along with an option to press a button for another language. Enter the phone's unique identification number and press the pound key. Then enter your PIN. The voice will tell you how much money is on the card, or how many minutes, depending on the type of card you have. Enter the phone number you're calling. The voice will then tell you how many minutes are available for the call and will connect you. When finished, press the pound key to hear how many minutes are left, or hang up the call.

Resources

• CNET: Hang Up On Prepaid Calling Card Scams
• AT&T Calling Cards Services