What Is a Pre-paid Phone Card? 

A pre-paid phone card is a card you purchase (for a set price) and use to make long distance phone calls. These cards are usually sold in dollar amounts or by number of minutes.

 Why Do People Buy Pre-paid Phone Cards? 

Many people use a pre-paid phone card because of the card’s convenience - it can be used anywhere and, since you pay in advance, there is no bill. Pre-paid phone cards are popular among travelers, students, people who frequently call overseas, and those who haven’t selected a long-distance service. In addition, pre-paid phone cards are sold in convenient places, such as newsstands, post offices, stores and even online by email.

 What about International Calls? 

Rates for international calls can vary dramatically, based on the country that you call or the way that you make the call. Pre-paid phone cards often offer rates that are much lower than a telephone company’s basic international rates.

 How Do I Use a Pre-paid Phone Card? 

A toll-free access phone number and a personal identification number (PIN) are usually printed on each phone card. To make a phone call, you dial the access number and then enter the PIN. An automated voice will ask you to enter the phone number you are trying to call, and it will tell you how much time you have left on your card. It might also give you other information/options.

Phone card companies keep track of how much of a card’s calling time is used by the card’s PIN number. You can add time to some pre-paid phone cards, and the added cost can usually be billed to a credit card. If you cannot add time to your card, you will need to buy a new one once all the time has been used. Also, pre-paid phone cards often have expiration dates. Make sure to keep track of the date your card expires so you don’t lose unused minutes.

 Who Makes Your Phone Card Work? 

• Carriers are responsible for the telephone lines that carry calls.

• Resellers buy telephone minutes from the carriers.

• Issuers set the card rates and provide toll-free customer service and access numbers.

• Distributors sell the cards to the retailers.

• Retailers sell the cards to consumers (though it is important to remember that a store may not have control over the quality of the card or the service it provides).

 What Are Common Complaints about Pre-paid Phone Cards? 

As pre-paid phone cards are increasing in popularity, some common complaints are becoming evident. They are:

• Access numbers and/or PINs that don’t work;

• Service or access numbers that are always busy;

• Card issuers that go out of business, leaving people with useless cards;

• Rates that are higher than advertised, or hidden charges;

• Cards that charge you even when your call does not go through;

• Poor quality connections; and

• Cards that expire without the purchaser’s knowledge.

 How Can I Avoid the Problems Associated with Pre-paid Phone Cards? 

Make sure you understand the rates for your particular phone card. Also check the expiration date, look for a toll-free customer service number provided with or on the card, and make sure you understand the instructions on how to use the card. You may also want to ask your friends and family to recommend cards they have used and liked.

 What Should I Do

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Pre-Paid Phone Cards

Pre-paid phone cards represent a convenient way of placing long-distance phone calls and often provide a big savings over traditional calling cards, coin call or collect calls. But, pre-paid phone cards are generally more expensive than making calls from home. You can purchase them at newstands, post offices, retail stores, grocery or convenience stores, and they generally cost from $5.00 to $15.00.

Unfortunately, sometimes the cards don't work, don't hold the value shown on the card, or the service provided by the phone card is unsatisfactory. The store where you buy your card has no control over the quality of service you receive. To make sure you are getting what you pay for you should buy a card costing only a few dollars so you can test out the service.

Consider the following before buying a pre-paid phone card:

1.(pre-paid phone card) Ask the store manager if he or she will give you your money back if the phone service is unsatisfactory.

2. (pre-paid phone card)Look for the rate for local and long-distance calls on the card's package or the machine where you buy the card. If you can't find the rate, call the card's customer service number.

3. (pre-paid phone card)If the rates are very low, beware - particularly if you plan to make international calls. Very low rates may indicate poor customer service.

4. (pre-paid phone card)Check for an expiration date. Most cards expire one year after the first time you use it.

5. (pre-paid phone card)Be sure you understand the instructions that come with the card.

6. (pre-paid phone card)Make sure the card comes in a sealed envelope or has a sticker covering the "Personal Identification Number" or "PIN" number - otherwise anyone can use the time you have paid for.

7. (pre-paid phone card)Generally, you can call nearly 200 countries with a calling card, but the rates are higher and they vary by country.

 

How Do the Cards Work (Prepaid phone cards)?

• Prepaid phone cards! Each card has an "800" number printed on the back. It also has a "Personal Identification Number" or "PIN." Dial the 800 number, enter your "PIN," and then enter the phone number you are calling.
  
   
• Prepaid phone cards! Each time you use the card and the number you are calling answers, you will pay a connection fee which will be subtracted from the available minutes on your card. Remember, ALL low rate phone cards have a connection fee.
  
   
• Prepaid phone cards! If no one answers you don't pay the connection fee.
  
   
• Prepaid phone cards! Each time you make a call, a computer will tell you how much time is left on your card.
  
   
• Prepaid phone cards! If you use your pre-paid phone card at a payphone you may be charged a surcharge. The change is generally 50 cents and is deducted from the minutes available on your card.
  
   
• Prepaid phone cards! Most calls are billed in 1 minute increments with oversees calls having up to a 3 minute minimum.
  
   
• Prepaid phone cards! If you have a problem with your pre-paid phone card, notify the New Jersey Division of Consumer Affairs.