Consumer Tips

Prepaid Long Distance Phone Cards

Consumers should take precautions when buying prepaid long distance phone cards. With the rapid growth in the prepaid long distance phone card industry, many consumers are reporting problems such as hidden fees, higher per minute rates than advertised, and less minutes provided than originally advertised.

Consumers purchase prepaid long distance phone cards at various retail establishments, including convenience stores, supermarkets and newsstands, which are sold in different amounts, often ranging from $5 to $20 per card. The variety of cards is typically advertised as offering specific per minute charges depending on the country destination the potential consumer wishes to call.

Prepaid cards can be used from any telephone by dialing a toll-free number listed on the card and using an authorization number that is also printed on the card. A voice prompt tells the user how much time is available on the card at the beginning of the call, and may alert them when their time is almost used up, then cuts off the call when time has run out.

Before deciding to buy a prepaid phone card, the Better Business Bureau strongly suggests that consumers make sure that all significant information is clearly disclosed. Consumers should look out for additional charges such as:

- connection fees;
- minimum charges (such as charges based on a minimum of three minutes even though the call lasted 30 seconds);
- calling time restrictions;
- service fees or any other surcharges;
- expiry dates for the card;
- any additional fees for calling overseas to a cellular phone;
- maintenance fees, weekly fees or other fees that may reduce the time available.