Phone Cards and Calling Cards!
A calling card or phone card is defined as telecommunication credit card with an Identification Code for using a long distance carrier when the customer is away from their home or office. Phone cards are now being used extensively for residential calls. Phone cards are often considerably cheaper than using collect calling, or having the phone call charged to your hotel or motel room.
Phone cards or calling cards are available in prepaid and credit forms. Typically a calling card user will pick up a phone anywhere and dial a predetermined number (often Toll Free). The phone card user is prompted for a user ID and a Password before dialing the number they require.
Cards are a misnomer as some calling cards are available without the issue of an actual plastic "credit card".
Q) What is a prepaid card?
A) prepaid card is exactly what the name implies. You pay a fixed amount up front which may be for units, minutes or Dollars. Typically the time based phone cards come in increments of 100, 300, 600, or 1000 minutes. Dollar based phone cards start at $5 and go up to around $300.
Q) What is a credit based phone card?
A) This is a phone card which is monthly billed. (Normally to your credit card.)
Q) What is an instant PIN
A) Certain providers will provide you with an instant phone card by e-mail provided you pay for it up front either with cash or with a credit card. You don't get a piece of plastic. You just get your PIN number. These cards are normally low value and expire.
Q) Who keeps the score - how are the minutes used recorded?
A) As calls are made, the number of usable minutes is automatically deducted from the card balance by the phone card provider. This is normally recorded on the calling card company's computer system. Some cards (for example in a mobile phone) record the usage on the actual card itself.
Q) Please explain the different fee structures.
A) Phone Cards have become sophisticated and there are many ways for phone card companies to charge you more.
All phone cards have a combination of one or more of the following charges:-
Time based charge:-
The actual time you spend online either in units purchased or a time increment in seconds. The time increments vary from 1 second to 5 minutes.
Connection Fee:-
A one off charge for initiating a single call. Each and every time you use the card and your party answers, you will be charged a connection fee which will be deducted from the available minutes. This amount is deducted from the card value either in money or in minutes. If a calling card has a very low per minute rate, the chances are it has either a high connection fee or a surcharge. It is a logical extension that cards with a connection fee are hopeless for short duration phone calls whereas they may be highly effective for long duration calling.
Initial Connection/Weekly/Monthly Service/Maintenance Fees:-
Some cards have an initial set up fee. This could be a one off just to get you on the road. Some, however, charge a weekly or monthly fee of around $1.00. This is charged after the first time that the card is used and is deducted in minutes or dollar from the card. Even if you are not using your calling card you may be racking up a charge.
Pay Phone/Cellular Phone Charges
Nearly all phone card calls originating from a Pay Phone are charged a fee per call. This is required by federal law and the fee typically ranges from $.35 to $.50 per call. This goes to pay Uncle Sam or the owner of the payphone. This amount is deducted in minutes from the card. If your cellular or mobile phone company allows you to call from your mobile phone, there maybe a charge per call fee. Some Cellphone contracts do not allow the use of alternate carriers like phonecards or dialaround services.
Taxes
There are FCC/State/Local charges taxes based on where the call originates. (This is the same tax that appears on your phone bill each month and is calculated on each call.) Normally this is factored into the rate but it can be deducted separately and will be deducted from the value of the card.
Q) What other pitfalls are there when I choose a calling card?
A) Phone cards Expire
Many phone cards have an expiry date. Normally this begins the first time the card is used. You can call up to the value available on the phone card until you reach the cutoff date. Typically ranges are 14 days, 30 day, six months, or one year. Generally all unused minutes are lost when the card expires. (This is not always the case and on some cards lost minutes can be recouped by upgrading)
Billing Increment
This is the minimum call duration and the increment used to calculate the call cost. Typically calling cards have a one minute minimum. Beware the cards that have minimum times of two to three minutes. You should consider cards that have a 60 second minimum and have a low billing increment. Low billing increments start at 6 seconds.
don't get caught by the Surcharge.
This is discussed above. For the sake of completeness cards that have a very cheap per minute rate often have a very high connection fee or surcharge. Making short duration calls with this type of card can be very expensive. You should use this type of card to make long duration calls particularly to International destinations.
Check if there is a delivery charge.
Calling cards come in three forms:-
1)Actual plastic phone card
2)Actual plastic phone card and an e-mail PIN
3)PIN only (no plastic)
Check if there is a delivery charge if you are going to get the plastic variety.
Do not buy low value cards if there is a delivery charge.
Check if there are finance charges in the financial transaction.
You can pay for calling cards by all the traditional methods. Sometimes
there is a financial charge - for example if you are buying a $20 card there
is no point in paying a $15 charge for the privilege of paying for it by wire transfer.
Q) How do I use a prepaid phone card?
A) Dial the access numbers from any telephone. These numbers are nearly always toll free. Enter your user name and/or PIN # (This varies from card to card). Enter your destination phone number.
Q) Who should use a prepaid phone card?
A) Travellers, Students, Scholars, Pensioners, Hauliers, Representatives, residents in States where the local call cost is expensive and international residents who can bypass their local phone systems at considerably cheaper rates.
Q) Why should I use a prepaid card?
A) They are often much cheaper than long distance providers.
You can budget your long distance calling costs.
You can bypass hotel and educational institution systems with the resultant savings.
(Dialing phone card toll free access numbers allows you to bypass the system.)
Q) How do I know how much time, (or money) is left on my card?
A) Your balance is normally given each time you call the access number and enter your PIN.
Q) How do I make multiple calls? Do I need to hang up after each one?
A) Follow on calls can be made on most cards by pressing the # key. This varies from card to card and you will need to check with the service provider in question. You can also try ##.
Q) My existing regular phone service has always provided me with calling cards, why don't I just use this one instead of a third party phone card?
A) Calling cards are provided as a service by the major providers. They are often extremely expensive. You can pay up to $0,85/minute
Q) What is a re-chargeable or re-usable phone card?
A) This is exactly what the name implies. It is also user friendly as you only buy the original card. You can instantly add more calling time using a credit card. Service providers have a toll-free number or you access their web site. Certain cards allow you to prepay using wire transfers or cheques - this obviously has a time implication and users are advised that your recharge can take up to 15 days to clear and be activated. Many providers now also have an e-mail payment system like PayPal. You can e-mail your payment for your airtime.
Q) How long does it take to get my phone card?
A) Anything from instantaneous to 2 weeks. It normally depends on how fast the calling card company gets paid. If the card is a PIN only card it can be delivered very quickly. If its the Plastic type it has to be printed and delivered. If you live in outer Mongolia the delivery obviously takes longer - so the delivery address can be a factor.
Q) What else can I do with my phone card?
A) Plastic calling cards are used for promotions, gifts, mementos, souvenirs and fund raising. Anything that can be printed can be put on a calling card. Custom-printed phone cards make great promotion gifts, general gifts and souvenirs. Remember a phone card is a valuable item so your customers and friends look at the card. What better way to put the name of your company under their noses on a regular basis. Consider the following:-
1)Give out phone cards at Christmas to your customers. In fact at any special occasion.
2)Send your Mom one for her birthday.
3)Keep some in stock as teen birthday gifts.
4)Buy in bulk with your school logo printed on the face and sell them to raise funds.
5)Use them as a wedding memento or to celebrate your new baby.
6)Negotiate bulk discount phone cards for your club and put the club logo on them.
7)Use them as a promotion/prizes at your company golf/fishing/sports day.
Q) Can I use the phone card to call to Cellular Phones?
A) Some cards do not allow the connection to cellular phones, others allow it but charge higher rates.
Q) Is there a charge if I get a busy signal?
A) In principle the value of your calling card should not reduce if you encounter a busy signal.
There are basically two reasons you would get a busy signal:-
1)Your access number produces a busy signal. This means that there are too many callers using this phone card. Try again later. If the problem persists change to another phone card.
2)The busy signal is generated at the destination you are calling. This is often beyond the control of your calling card company. Remember international destinations have different customs, time zones and peak load periods. The quality of the telephone exchange system at the destination can also be a factor. Try your call again later. If the problem persists change to another phone card.
Q) What do I do if my call gets disconnected?
A) Try again! If the problem persists call customer service.
Q) Will I be charged if I make a call and no one answers?
A) As long as the call isn't answered you should not pay anything. If you dial an incorrect number, or the call is answered by an answering machine or voice mail, you will be charged the full connection fee (if there is one for the particular phone card you are using) and the minutes used.
Q) How do I know I am running out of minutes on a prepaid card?
A) On most cards you are notified how many minutes are remaining at the beginning of each call,. In general you will be interrupted during your conversation when you are down to the last two or three minute.
Q) Where do I get help if I have trouble using my calling card?
A) Dial the toll-free Customer Service number provided on your card or email. Most reputable phone card companies have a 24 hour help service.
Q) If I lose my PIN number, can it be replaced?
A) Depends on the card. With the low value cards, if you loose your PIN number, it will not be replaced. This is becoming more general due to the admin hassle of reinstating a few minutes. Guard your cards and your PIN numbers they are a valuable commodity.
Q) What do I do if my plastic phone card is stolen or lost?
A) It is no different than a regular credit card. You should write the numbers down somewhere safe so that you have a record of the card details. If its stolen or lost report it to customer service of the relevant company. This is doubly important with a monthly billed phone card.
Q) Can my calling card be used to phone within my state?
A) Yes. Many cost conscious consumers use calling cards when their local phone company rates are excessive and there is no alternative long distance carrier at a cheap rate.
Q) Can my card be used for both interstate and international calls?
A) Once again it depends on the card. Some cards are restricted and international calls are not permitted. International rates are higher and do vary by country. You will need to check with the phone card company what your international rates are.
Q) I live in the US. Can I use my calling in Europe or other foreign countries to call home?
A) If your card has global roaming facilities you can call anywhere from various countries around the world. The rate may be expensive and you need to check which countries service is available in. If you are going to need this kind of facility we suggest you research International Phone Cards. Most US phone cards do not work other than in the US. This includes Canada.
Q) Will I get the same rate per minute rate on every call I make?
A) Yes! if it is a flat rate card with no surcharges.
No! if it has a connection/maintenance/surcharge fee - the true per minute rate will vary based on the call duration.
Q) Is the rate the same 24 hours a day?
A) The per minute charge part of the cost calculation is constant 24 hours a day.
(Remember the surcharge if there is one effects the total rate)
Q) Where do I get a free phone card?
A) Mostly free phone cards are low value give aways provided you do something, sign up for something or buy something.
Q) Why has the industry experienced such extraordinary growth?
A) We have dedicates a whole page to this. You can visit it here.
Q) Is this something new?
A) We have dedicates a whole page to this as well! You can read about the history of phone cards here.