Phone Cards Frequently Asked Questions

Why should I use a phone card?

A phone card can be a very economical way to place phone calls when away from home or the office. Most telephone cards are cheaper than calling collect or direct dialing through a payphone. Even if you are calling from home or the office, a telephone card may be also an inexpensive alternative to paying high long distance rates to certain locations.

If you frequently call the same number (e.g. home, office, school, etc) from the road, consider getting a toll free number.

What types of telephone cards are there?

There are basically two types of telephone cards - prepaid and nonprepaid (Nonprepaid cards are also referred to as monthly-billed cards.) With prepaid phone cards, you purchase talk time in advance of the call. Prepaid cards typically come in $5, $10, $20, $50 and $100 denominations.

With nonprepaid cards, you pay for the calls after they occur. You typically pay for calls either by invoice or automatically with a credit card.

Which type of calling card is the best to use?

As to which card is best very much depends upon your calling needs. Some of the factors to consider are:

What is the rate to the location you call the most?

What is the duration of your calls?

How frequently do you use a calling card?

Would you like to be billed after the call or have the "built in budgeting" of a set amount of prepaid talk time?

Think of telephone cards as hand tools. Like hand tools, each telephone card is designed for a particular purpose. You wouldn't use a screw driver to hammer in a nail. So, don't use a calling card with a high per call surcharge to place a short-duration call. However, that phone card with a high per call surcharge might have a exceptionally low per minute rate making it an excellent choice for placing a long-duration call.

What is the gimmick with those extremely low rate telephone cards?

As with many other products, phone cards come in a wide spectrum. Low-rate phone cards are typically marketed to catch attention because of their low rate. However, low-rate phone cards typically have various surcharges and fees. That is not to say that low-rate telephone cards are bad or deceptive. Because of their low per minute rate and high per call surcharge, low-rate telephone rates are typically best suited for long-duration calls.

What charges or fees are associated with telephone cards?

Charges and fees can vary widely by card. The most typical are:

Per Call Surcharge - a set amount charged regardless of the duration of the call. The per call surcharge may vary depending upon the location called. Foreign terminations typically have a higher surcharge than domestic calls. A per call surcharge is most common with prepaid cards but rare with monthly billed cards.

Payphone Surcharge - a set amount charged for calls originating from a payphone. This fee was established by the FCC to compensate the payphone owner for the use of the payphone. A payphone surcharge is typical to most all telephone cards.

Maintenance or Service Fee - a set amount charged each week or month regardless of usage. A maintenance or service fee is most common with prepaid cards.

Billing Fee - a set amount charged each month of service. A billing fee is commonly charged by stand alone monthly billed telephone cards.

Universal Service Fund Fee - charged by most monthly billed phone cards.

Review the information about the card you are considering to determine which, if any, charges and fees apply.

 

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