April 2008 - The Confusing World of Phone Cards

If you purchase a 500 minute phone card, would you assume you would get 500 minutes of calling time? Well, it depends.

The phone company might dock you a minute per minute used, or, (depending on what state you are in and what state you are calling) might dock you three minutes for every minute, five minutes for every minute or even eight minutes for every minutes used.

A 500-minute calling card purchased recently at WalMart was actually a 166-minute card, as it docked three minutes time for every minute of intra-state calls.

A 1.1 cent per minute phone card purchased at Go-Mart had a different catch. Time was docked at 1.1 cents per minute, however there was a 79 cent charge for every call connection.

Some phone cards round off minutes to the nearest "time segment." Think they round up to the next minute? They might. But some round of calls in eight-minute blocks.

Some card minutes will expire over time after the card has been activated -- whether you use them or not.

Phone cards do have benefits. Most do offer lower long distance rates. They can be used with virtually any phone - but a payphone call often costs more. They also allow you to accurately budget for long distance costs.

When you need to make a decision about choose one of the thousands of calling cards out there, how do you make sure you purchase the best long distance deal? Read the fine print.

What rate does the card offer for your typical calling destination? Calls made within the state, to another state and international calls may be charged differently. Rates can also vary depending on the hour of the day.

What is the increment level for minute rounding? Will a four minute phone call cost you four minutes -- or six or eight or ten?

Are there any fees or taxes? You could be charged "connection fees" or "access fees" which can apply to calls that no one answers. Some cards have a "long call" fee, and charge if you make calls that last longer than a predetermined amount of time, often over 20 minutes. Others have "maintenance fees" that are charged on a daily, weekly, bi-monthly or monthly basis. Some may not disclose all fees on the card. Maintenance fees are often hidden.

Does the card have an expiration date? If so, you’ll need to use all your minutes before that date, or you’ll lose them.

Does the card offer any form of guarantee or service? Look for the hours that customer service is available, warranties, privacy policies, any thing that symbolizes trust.

Look for names you know. In 2000, one company went out of business, rendering ten million phone cards worthless.

Once you have finally chosen and purchased your calling card, you still have to figure out how to use the darn thing. Your use of the card directly affects how you are charged.

First, you may need to confirm that your pin number is valid. Then you’ll need to make sure your use of the card doesn’t incur additional fees. All cards carry an FCC imposed payphone fee averaging from 49 cents to $1 every time you use the card at a payphone. The fee also applies when calling home from other counties on a calling card sold by a United States company.

You may be able to get extra minutes if you utilize a local access number. Try to access the service through that number each time you use the card.

Calling cards can be a good deal, if you choose the right card and use it wisely.