FTC report on phone cards

At Viapin, customer satisfaction is the whole reason of our work. That's why we want to reproduce this document from the FTC that offers a great research on calling cards & phone cards usage and gives some instructions on how to choose them, prevent and report any inconvenience a user may encounter.

You can read the complete text here and find a pdf version of this document here.

How Pre-Paid Calling Cards Work

Most pre-paid phone cards display a toll-free access telephone number and a personal identification number (PIN). Pre-paid phone card companies have computers that use your PIN to keep track of your card usage — how much time you have on your card in minutes or units. To make a phone call, you dial the access number, enter your PIN, and at the voice prompt, enter the phone number of the party you’re trying to reach. A computer tells you how much time — or how many units — you have left on your card, and how to use other features your card may offer. Typically, each unit equals one minute for a domestic call. If your pre-paid phone card can’t be recharged — that is, if you can’t buy additional minutes by phone for the card — you’ll need to buy another card once you’ve used up the time.

Consumer Concerns

As more people buy and use pre-paid cards, some consumer complaints have come to light:

• access numbers or PINs that don’t work;
  
• issuers who go out of business, leaving card-holders with a useless card;
  
• customer service numbers that are busy or simply don’t work;
  
• toll-free access numbers that are constantly busy, preventing you from using the card;
  
• rates that are higher than advertised;
  
• hidden connection charges, taxes, and surcharges;
  
• cards that debit minutes or units even when you don’t connect with the party you’re calling; and
  
• poor quality connections.

Buying Time and Value
Consumers can avoid many of these problems — and buy considerable peace of mind — by planning ahead. Although many pre-paid phone cards are impulse purchases, you can avoid disappointment by checking out a few things in advance:

• Ask if the retailer will stand behind the card if the telephone service is unsatisfactory.
  
• The pre-paid phone card industry is highly competitive. But very low rates, particularly for international calls, may indicate poor customer service.
  
• Look for disclosures about surcharges, monthly fees, per-call access, and the like, in addition to the rate-per-minute or unit. Some cards add a surcharge to the first minute of use. Others charge an activation fee for recharging cards.
  
• Check on expiration dates. Most cards expire one year after first use. If there is no expiration date, a card usually is considered “live” until all phone time is used.
  
• Look for a toll-free customer service number. If the customer service number isn’t toll-free or displayed, it may be difficult to contact the company if you have a problem with the card. A busy signal on the customer service line may be a tip-off to a rip-off.
  
• Be sure the card comes with instructions that you understand.
  

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.