Phone company calling cards and prepaid calling cards, which should you use.

     Phone companies are happy to provide you with a calling card because they know when you use the calling card, you will be charged extra fees. The fees may include a $.25 - $1.00 (and even more) charge for each phone call along with a higher rate per minute charge when compared to calls from your home. Other calling cards may not have a fee per use and provide a flat rate per minute. The calls will appear on your monthly phone bill along with the associated taxes.

     Never make a phone call using a calling card if the voice message states, “Thank you for using 'ABC' phone company” when you are not using a calling card for 'ABC' phone company. The reason is because you will be charged an extra dollar or two for accessing the other phone company. For example: when using an AT&T® calling card for a phone call from Columbia, SC to Tampa, FL, a message states “Thank you for using Bell South®”. The call will be connected, but you will be charged extra for using Bell South®. Ensure you reach an AT&T® operator by following the instructions on the calling card to prevent the extra charge.

     Also, whenever an operator asks you which long distance carrier you would like to use, never state "I don't care" or "Whichever". The reason is because those names are legal registered names. You will then be charged an excessive access charge by a valid phone company owning those names. Always state your long distance carrier!

     A choice for avoiding access charges and high per minute rates is the use of a prepaid calling card. The cards can be found in many stores and in vending machines. The cards offer a flat rate per minute no matter the time of day and to whom in the United States. The prepaid phone card works by calling a toll-free number, entering an account number, then the number you are calling. The number of minutes used will be deducted from the total available on the card (tallied in a database for the account with the prepaid calling card company). If the total number of available minutes is used up, another number can be called to add minutes using a credit card, again at the same rate per minute. The prepaid calling card companies are given a discount for the high volume of use through the toll-free number. Therefore, their income is the difference between the per minute charge and the actual cost per minute the calling card company is charged by another phone company which is typically much cheaper than you are charged.

     Beware of prepaid calling card advertisements indicating the cost for the card, but no indication of the number of minutes on the card. Some cards can advertise a price of $20 offering a 50% savings in long distance charges with no indication of the number of minutes. 50% savings compared to what price. Therefore, avoid those types of cards.

     Look for pre-paid phone cards offered through wholesale stores such as Sams Club® or Costco®, drug stores, or grocery stores that can offer a very low per minute charge. Some of the cards contain an expiration date after activation and charge a connection fee. Ensure you are able to use all the minutes on the card prior to the expiration date. The connection fee can occur for every call, but typically only for calls made from pay phones. The fee will result in minutes being deducted from the total minutes available on the card.

     Taxes are not paid for calls when using prepaid calling cards unlike the long distance calls indicated in your phone bill. The reason is because the taxes are already included in the prepaid calling card's per minute charge. An additional benefit is that the Carrier Line Charge and the Universal Connectivity Charge required by the FCC cannot be billed since the card is prepaid. The lack of taxes and charges coupled with the low rates offered by some prepaid calling cards provide an economical alternative to the service offered by a long distance carrier. Simply notify your local phone company to eliminate your long distance service. You will still be able to use toll-free numbers and dial-around numbers, but at a lower rate per minute charge. I have been using an AT&T® pre-paid calling card purchased from Sams Club® for years for all my long distance use. The overall costs for my calling pattern have been much lower than phone company calling plans.

     Prepaid calling cards are an ideal choice for students away from home and business and personal travelers. Parents can provide a card so their children won't have to pay for any calls to home. Personal travelers can use the card to reduce expenses associated with phone company calling cards. The cards are also very useful for businesses wanting to regulate the long distance use of their employees from their home or when out of town. The cards provide an easy and efficient means for employees to conduct business from their home without having to deal with the hassle of submitting a reimbursement for the costs on their monthly phone bill. The prepaid amount of time on the card and the expenses are controlled by the amount the company purchases.

     Another long distance choice is available at many pay phones which advertise $.25/minute anywhere in the U.S. You do not need a calling card nor a credit card, but you are required to use a lot of coin change.


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