Prepaid phone cards are communication tools that allow consumers to pay in advance for telephone calls. Depending on how much the card costs, you receive a specific number of minutes of calling time. As you continue to use the card, the minutes are reduced, until you have used up all the time on the card.



Most people view using prepaid cards as helpful and affordable devices in calling long distance and international calls. The main factor to saving the most money with these cards is to compare not only the per-minute rate but also other charges and fees, which can add a lot to the cost of calls. These call cards can be used to place calls from your home phone, a relative's home phone,in hotels and from any type of pay phone.

Be Wary Of Hidden Charges

Most phone card providers will say they have the lowest costs per call. They will also claim they are there to help save you money. In reality, most of these companies aren't. These are the providers that have a lot of hidden fees and charges. Usually, companies will charge a rather large fee to keep your account active. These are called "monthly maintenance fees" or given a similar name. These are fees you pay keep your account active and in their system, and the fees can range from under a dollar to close to five dollars a month, to maintain.

Another common prepaid call card scam is done when companies will apply different charges for making international calls. Depending on the company, these charges can be very small, if there are any, and others will charge up to several dollars in extra fee just to make the international call. Another common prepaid call card scams can be seen when comparing whether a company charges a fee to use the prepaid phone card on cell phones or payphones.

Most individuals are unaware that some phone firms charge you to use your phone card on cell phones and payphones. Many people who buy phone cards will use them while on vacation or trips, in an effort to prevent a high cell phone bill. What these people are unaware of, is they are being charged to use their prepaid card on their cell phone.

The most worrying part about prepaid calling card scams, is the charges most providers will use just to connect and disconnect your phone call. Prepaid phone card firms are charging money just to start and end the phone call.

How To Report Phone Card Fraud

There are also other types of illegal or deceptive sales practices that involve the use of prepaid cards. Some card providers fail to tell consumers about fees, surcharges and other costs, or hide them in small, hard-to-read print.

Around 10 states in the US have enacted laws, which require full disclosure of prepaid phone card costs. In all states, deceptive and unfair trade practices are unlawful, even if no specific rules cover prepaid phone card packaging. If you are the victim of prepaid phone card fraud, first try sorting things out with the company.

The International Prepaid Communications Association (IPCA), an industry organization, also operates a toll-free hotline for customers who have questions or concerns about prepaid call cards. If you cannot resolve your issues with the company, or if the company doesn't answer your call, seek assistance from your local district attorney's consumer fraud unit, or from the state public service commission or attorney general's office.

Consumers are advised that, before purchasing a specific prepaid phone card, do yourself a favor by doing a considerable amount of research on the different prepaid phone cards,and check out their respective fees and basic charges, to ensure you get the best value for your money.

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