Finance Q&A

Small Business Telephones. What's Up With Telephone Cards?

Edwards Finance > Phones

Q. I used to buy telephone cards to use for long-distance calls within the USA. The cards were good for state-to-state calls or in-state cards. The only cards I can find now are for state-to-state calls only. If a person uses one of the state-to-state cards to make an in-state call, the cost is five times the rate of state-to-state calling. Did something change that doesn't allow the sale of cards good for in-state calls?

A. Several states enacted regulations that tax phone cards the same way a regular phone calls for instate calls resulting in additional minutes being deducted for each call. My guess is some carriers got tired of complaints from people who saw nine minutes taken off of a five minute call. My suggestion is to find a local store with a large selection ,ask what the best card is for your needs and buy the smallest denomination. Some stores will sell you the best card,some will offer the most profitable and some will sell you the one closes to the register. Last time I looked, the cards had the same in-state rates until you "recharged" them. Then the rules you mention took over. So you just buy new cards. That was several months ago. I think that is unlikely as you are using the same PIN and access number for the original card and the recharge and therefore accessing the same platform which is the rate programmed into the computer for that card. It must change the rate when you re-program the card. That is certainly not beyond reason. And it is what their sign said. And what the card company told me on the phone. Then they are, in fact going through the trouble of adjusting it. I left that business last year for number of reason, one being that there were too many cards with too much small type and I tired of explaining that a five cent a minute card with no fees or charges might be a better buy that a 1 cent a minute card with connection charges.

 


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