What Are Prepaid Phone Cards?

Prepaid phone cards are used to make long distance telephone calls. Phone cards are prepaid by the purchaser and offer the consumer the option of making domestic or international long distance calls by deducting the payment from the prepaid card as opposed to billing a telephone account. Calls are made by calling a 1-800 number and entering a Personal Identification Number (PIN) printed on the back of the phone card. Customers normally purchase phone cards for specific dollar amounts.

As calls are made, the usable minutes are automatically deducted from the card balance, which is either recorded on the card itself or on a central computer through which the long distance calls are routed. Some cards are also re-chargeable, allowing the user to add more calling time by dialing a toll-free number or accessing a web site and paying with a credit card.

You should find the following information on the card or on its packaging: Each card should have a toll-free customer service number. If the card has an expiration date, it should be noted. An explanation of the rate for each minute of use should be included. Many prepaid calls also round up the duration of each call to the nearest minute or to another increment of time. There may also be a variety of hidden costs and fees and these should be noted. For example, some cards will automatically deduct time from the card every week or month even if you do not make any calls.

Prepaid phone cards are sold at many locations, such as convenience stores, liquor stores, discount stores, supermarkets, department stores, and small markets and shops. They can also be purchased through the Internet on the World Wide Web. If the card does not work, immediately take it back to the store for a refund. If you have any other problems, call the toll-free customer service number. If you cannot resolve the problem with the calling card company, contact the CPUC Consumer Affairs Branch at 800-649-7570 or use the online complaint form available at www.calphoneinfo.com.