International Phone Cards: Are You Getting

International Phone Cards:
Are You Getting Your Money’s Worth?
Prepaid phone cards can be a low-cost way to call family
and friends in other countries. They are easy to use. But if
you buy cards often, your costs can add up.
Rates and fees use up the money in your card. Rates are
your per-minute costs. Rates vary a lot, from less than one
cent to almost 50 cents per minute. Fees are all the extra
charges. You might pay a fee after each call or a fee each
week, as well as other fees.
Many people rely on prepaid phone cards to reach family in other countries.
That’s why Consumer Reports decided to investigate the cards—and find out
if people were getting their money’s worth.
Consumer Reports sent secret shoppers to buy more than 130 cards in seven
communities in New York State. We made more than 100 calls with the cards
as part of our investigation.
Cost-Saving Tips
Here are some tips for making your money last longer:
■ Before you buy, read the details on the back of the
card. If the store will not let you, go somewhere else.
■ Try to buy at a local store, so you can go back if there
is a problem.
■ Look for cards without fees.
■ Look for new cards from a company you know.
They often offer lower rates for the first few weeks.
■ Do not buy too many cards at once. The rates may
increase before you use all the cards.
■ Look for cards with local access numbers. Most
cards charge higher rates when you use toll-free access
numbers.
■ Check to see if the card expires after a certain date
or time period.
■ Make sure that the coating over the PIN number
has not been removed before you buy it, so you
know that no one else has used the card.
Choose the right card for your needs
If you make long calls
Choose a card with low per-minute rates.
If you will use your card for several calls
Choose a card with low fees.
If you do not make calls often
Choose a no-fee card. You can find them through
national retailers or online.
If you make calls to one particular region
Choose cards that advertise good rates in that region.
(The rates in other regions may be higher.)
If you make calls to several regions
Choose cards that advertise “global calling.”
Or buy more than one region-specific card.
Learning about your card’s rates
Your cost-per-minute may change for each call.
■ Listen to the “minutes available” announcement when
you make a call.
■ Many cards charge higher rates for calls to cell phones.
■ If you like a card and want to buy it again, be sure to
check the rates, as they can change.
■ You can try calling the toll-free customer service number
to check on your cost per minute.
■ Most cards round up the time used to the next minute.
But some cards round up more.
■ Some of the larger phone card companies have websites
for looking up rates.
■ Some cards charge higher rates after the first call.
Learning about your card’s fees
Card fees can reduce your talking time by half or more!
■ Many cards charge an extra $1 for calling from a pay
phone.
■ Some cards charge a fee when you hang up, or even
before your call is over.
■ Many cards charge an extra 2–5 cents per minute if you
use a toll-free access number.
■ Some cards list a range of fees, such as a hang-up fee of
“5 cents to $1.00.” You can ask customer service what
the actual fee is before you call.
■ Some cards charge a fee of $1 every week or two,
starting the first day you use the card.
You can report problems with a phone card company to:
The Federal Communications Commission
1-888-CALL-FCC
www.fcc.gov/complaints
The Federal Trade Commission
1-877-FTC-HELP
www.ftccomplaintassistant.gov
The New York Attorney General Consumer Complaints Office
1-800-771-7755
The New York State Public Service Commission
1-800-342-3377
In other states, contact your state Attorney General’s office
www.naag.org
Is there a cheaper
way to call?
■ Home and cell
phone companies
may offer low-cost
monthly plans for
international calling.
■ Web-based calling
can save you money,
and it is easier to find
out your per-minute
rates. If the person
you call also uses a
computer, costs are
even less.
Consumer Reports is the world’s largest independent product-testing
organization. Founded in 1936, Consumer Reports has over 8 million
subscribers to its magazine, website and other publications. Its advocacy
division, Consumers Union, works for health reform, food and product
safety, financial reform, and other consumer issues in Washington,
D.C., the states, and in the marketplace. For more information visit
www.ConsumerReports.org or www.ConsumerReportsenEspanol.org
Funds for this project were provided by the New York State Office of the Attorney General.
The views and statements expressed herein do not necessarily reflect the views and
opinions of the Attorney General.