All Phone Cards are NOT Created Equal

When I began selling phone cards I did very extensive (and expensive) research into the whole industry. What I found was both SHOCKING AND REWARDING.

I found that Phone Card companies:

• Can charge (and do!) over 65 different kinds of fees to their users
• Almost NEVER deliver all the minutes advertised--and many CANNOT
• Use very deceptive means to get your business
• Even the big three carriers use deceptive advertising

Let me give you an example of a card I bought:

It was called the "Penny Breaker" and boasted 1/2 cent per minute, but it had fees that no one could even tell me what they were. They began with an 89 cent per minute connection fee, a 33 cent maintenance fee, many long talk usage fees, disconnect fees, etc. It also cut off after one hour of talking which forced you to pay another 89 cent fee.

STAY AWAY FROM DEALS THAT ARE TOO GOOD TO BE TRUE!

I also found out that Phone Cards, if chosen carefully can be great tools for using long distance--from home or away.

The first thing we need to do is familiarize ourselves with the most common fees.

• Per Minute Rate: This is the rate which is charged per minute of talk time. It is usually the advertised rate. Unfortunately many consumers never read beyond this rate. Industry insiders say that a company has to collect 11-15 cents per minute to be profitable. They count on their fees or non-use of the card to push lower stated rates up to that level.
• Billing Increment: This is the smallest time which can be billed to the card. Most cards round calls up to the nearest 6 or 10 minute mark and charge you accordingly. The smaller the Billing Increment the better. All of my cards round to the nearest 1 minute.
• Connection Fee: This fee is applied every time you use the card and complete a call.
• Disconnect Fee: A back end charge for ending the call--almost never disclosed.
• Usage Fee: This fee is also called a "usage tax" or "communication fee." It is charged on nearly every card out there, but is seldom disclosed--it ranges from 11-50% of the total call bill. Usually it is assessed at the end of the call, but some cards tack it on as a fee every so many minutes.
• Long Call Fee: A tricky fee for cards with low per-minute rates which adds a charge for calls over 30, 40, or 60 minutes. I researched one card that charged 40 cents after the first 10 minutes and every 30 minutes thereafter. It really raises the effective cost of the card.
• Pay Phone Fee: This fee is usually 49-50 cents and applies to ALL PHONE CARDS on ALL calls placed from a pay phone and is mandated by the FCC to be paid to the owner of the pay phone.
• Maintenance Fee: This is a weekly or monthly fee assessed to the card just to keep it active. Sometimes they are even charged as frequently as every 4 days.
• Tons of Others! I could never list all of the fees possible. Beware! Many of the cards on Ebay sock it to ya on fees!

Something to Note -- and I don't know why this is so -- MOST CARDS OUT THERE WILL NEVER ALLOW YOU TO USE THE FULL NUMBER OF MINUTES ADVERTISED BECAUSE OF THEIR FEES. All of the cards I sell have special provisions which allow the user to get the full amount of time if they use them in a single LONG call.

How to Choose a Card...

Please note: I will disclose on this page all of the fees I know of on my cards. If you buy from me and find any fees I have not listed, please let me know so I can add it to this page--I will send you a $5 card if you find any undisclosed fees on my cards!

Do you want a card for a couple of very long calls?

Don't worry too much about the connection fee--it is only charged once and will be divided out over the whole call. Choose a card which has a low per minute rate. BEWARE of hidden charges on low rate cards! Always watch for the usage fees.

Try these cards

• *** Premier Penny, 1/min-- FEE DISCLOSURE
• N2K, 2.5/min -- FEE DISCLOSURE

Do you want a card to make a number of medium length or varying length calls?

Be careful of the connection fees because they will eat up your time on shorter calls. Go for a card with a very low connection fee or none at all. The per minute rate is still important because you are still making some long calls. Begin to pay close attention to the maintenance fees. Always watch for the usage fees.

Try these cards

• *** N2K, 2.5/min -- FEE DISCLOSURE
• Dollar Saver, 4.9/min -- FEE DISCOSURE

Do you need a card to make a lot of short calls?

Now you want to really watch those connection fees because they will take all your time in just a few calls. You need a card without a connection fee. If you plan to hold your card for several weeks before you use it up, be very careful of the maintenance fees.

• *** Dollar Saver, 4.9/min -- FEE DISCOSURE
• Campus Call, 9.9/min -- NO OTHER FEES! (EXCEPT PAYPHONE)

Do you just need a card to use infrequently?

You need a totally clean card--no connect, no maintenance, no usage, no nothing--just per minute rate.

• *** Campus Call, 9.9/min -- NO OTHER FEES! (EXCEPT PAYPHONE)

I hope this helps you decide which card is best for you!

Please consider buying phone cards from me. I have great feedback and enjoy a wonderful reputation on Ebay. I have sold hundreds of these and promise to take good care of you if you become my customer.

If you are not satisfied with phone cards purchased from me, I will fully refund your purchase price on any unused phone cards (PIN number not exposed).

This page and info copywrite 2000, Derrick Bohn
OKBOHN