First marketed as clever novelties, pre-paid phone cards now are sold at newsstands, post offices, travel agencies, retail stores, and grocery and convenience stores. They are used mostly by travelers, students, people who regularly call overseas, and those who may not have long-distance telephone service. Some pre-paid phone cards can be recharged, usually by billing the additional cost to your credit card. And some cards have advanced features like speed dialing for frequently called numbers and an activity report of called numbers, which may be handy for business purposes.
Occasionally, pre-paid phone cards have a hidden cost: because you’ve paid up-front, you may be out of pocket – and out of luck – if you discover a problem trying to use the card. That’s a big difference between pre-paid phone cards and traditional long distance calling cards and traditional long distance calling cards, where charges don’t appear on your bill until after you’ve made the call. Some issuers provide a replacement number on a separate document when you buy the card. If your card is lost or stolen, give the issuer the number to recover your unused calling time.
How Pre-Paid Calling Cards Work
Most pre-paid phone cards display a toll-free access telephone number and a personal identification number (PIN). Pre-paid phone card companies have computers that use your PIN to keep track of your card usage – how much phone time you have on your card in minutes or units. To make a phone call, you dial the access number, enter your PIN, and at the voice prompt, enter the phone number of the party you’re trying to reach. A computer tells you how much time – or how many units – you have left on your card, and how to use other features you r card may offer. Typically, each nit equals one domestic minute. If your pre-paid phone card can’t be recharged – that is, if you can’t buy additional minutes by phone for the card – you’ll need to buy another card once you’ve used up the time or minutes.
Several key players are involved in making sure your phone card works:
· Carriers are responsible for the telephone lines that carry your calls.
· Resellers buy telephone minutes from carriers.
· Issuers set the rates and provide toll-free customer service and access numbers.
· Distributors get the cards to retailers.
· Retailers sell the cards.
· Carriers and resellers can issue their own pre-paid phone cards; but if they don’t issue the cards, they’re not likely to be responsible for any problems you may have.
When you buy a pre-paid phone card from a store, it’s important to remember that you’ve bought a telephone service, not a product. The store doesn’t control the quality of the service. To make sure you’re getting what you’ve paid for, you may wan to buy a small denomination first to test out the service, and check with friends or relatives to find out their experience with the card.
As the pre-paid phone card industry mushrooms, and as more people buy and use the cards, some problems are coming to light. The most common consumer complaints are about:
· Access number or PINs that don’t work;
· Issuers who go out of business, leaving card-holders with a useless card;
· Customer service numbers that are busy or simply don’t work;
· Toll-free access numbers that are constantly busy, preventing use of the card;
· Rates that are higher than advertised
· Hidden connection charges, taxes and surcharges;
· Cards that debit minutes or units even when you don’t connect with the party you’re calling; and poor quality connections.
Buying Time and Value
Consumers can avoid many of these problems – and buy considerable peace of mind – by planning ahead. Although many pre-paid phone cards are impulse purchases, you can
preempt disappointment by checking out a few things in advance:
· Ask if the retailer will stand behind the card if the telephone service is unsatisfactory.
· Look for the rate for domestic and international calls on the card’s package or on the vending machine. These rates may vary depending on where you call. If you can’t find the rate, call the card’s customer service number.
· The pre-paid phone card industry is highly competitive. Beware of very low rates, particularly for international calls. They may indicate poor customer service.
· Look for disclosures about surcharges, monthly fees, pre-call access, and the like, in addition to the rate-per-minute or unit. Some cards add a surcharge to the first minute of use. Others charge an activation fee for recharging cards.
· Check on expiration dates. Most cards expire one year after first use. If there is no expiration date, a card usually is considered “live” until all phone time is used.
· Look for a toll-free customer service number. If the customer service number isn’t toll-free or displayed, it may be difficult to contact the company if you have a problem with the card. A busy signal on the customer service line may be s tip of t a rip-off.
· Be sure the card comes with instructions that you understand.
· Make sure the card comes in a sealed envelope or has a sticker covering the PIN. Otherwise, anyone who copies the PIN can use the phone time you’ve already paid for.