Prepaid Phone Cards

For consumers who either do not have a home phone or need to make phone calls when away from home, prepaid phone cards can offer ease of use, convenience and savings. However, there are numerous cards to choose from, and not all cards are created equal. The more consumers know about pre-paid phone cards, the less likely they are to fall victim to cheap frauds.

Many prepaid phone cards do not disclose enough information - especially about their rates - to enable consumers to make informed purchasing decisions. Remember to read the small print carefully as you shop for a prepaid phone card.

The most common concerns include:

• Access numbers 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;
• Poor phone connections;
• Hidden charges and surcharges;
• Rates that are higher than advertised;
• Cards that debit minutes or units even when you don't connect with the party you're calling.

To avoid these concerns, the BBB suggests the following:

• Ask friends and relatives for references on cards they have used.
• 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. Remember, rates for international calls can vary dramatically depending on the card and the country you wish to call. For example, a call to Canada may be three cents per minute, while a call to China using the same phone card may cost six cents per minute. 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, per-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 a tip off to 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 paid for.

For more information contact:

Better Business Bureau
www.bbb.org

New York State Attorney General
(800) 771-7755
www.oag.state.ny.us

Federal Trade Commission (FTC)
(877) 382-4357
www.ftc.gov

Federal Communications Commission (FCC)
(888) 225-5322
www.fcc.gov

Telecard Association Pre-paid Hotline
(800) 333-3513

International PrePaid Communications Association
904 Massachusetts Ave. NE
Washington, D.C. 20002
Ph: (800) 958-7824
Fax: (202) 547-7417
Email: inquiries@I-PCA.org
www.i-pca.org/consumer_info/index.html

This information is general in nature and is not intended as a reliability report on any company, product, or service.