FTC Consumer Alert

Federal Trade Commission Bureau of Consumer Protection Division of Consumer & Business Education

When Minutes Matter: 

Choosing a Pre-paid Phone Card

When you buy a pre-paid phone card, it means you are paying in advance for telephone calling 

time. The cards generally cost from $2 to $20 for local or long-distance calling time; the rate 

charged per minute determines the amount of calling time you’re buying.

Pre-paid phone cards can be very convenient. But the Federal Trade Commission (FTC), the 

nation’s consumer protection agency, and the Federal Communications Commission (FCC), the 

nation’s telecommunications agency, caution that some pre-paid phone cards have hidden costs or 

other problems, like bad connections, access numbers that are almost always busy, and personal 

identification numbers (PINs) that don’t work. 

Some calling cards come with fees that can take a big bite out of the calling time you’ve bought. 

As a result, the cards don’t deliver the call time they advertise. And because you’ve paid in 

advance, you may be out of pocket – and out of luck – if you discover a problem.

If you’re considering buying a calling card, read the poster, flyer, website or other advertisement 

for it – including any fine print – before you buy. Keep these questions in mind:

•	 Are fees going to diminish the value of the card? Common fees to look and listen for:

“Post-Call,” “Disconnect” or “Hang-Up” fees: charges deducted each time you hang up 

the phone after using the card.

“Maintenance” fees: charges deducted shortly after you use the card and at regular 

intervals. 

“Pay phone surcharges”: charges deducted if you use the card at a pay phone. 

•	 Do the advertised minutes apply only for a single call? Some cards lose a lot of value if you

try to make more than one call, regardless of the number of minutes advertised.

•	 Do the advertised minutes apply only if you use the “local access” number? Some cards

charge higher rates if you use the “toll-free access” number to place your call.

•	 Is there an expiration date for minutes?

•	 Do the advertised minutes apply to calls to a cell phone? In most cases, cards charge higher

per-minute rates for international calls to cell phones.

•	 Does the explanation of fees make sense to you? If it seems unreasonable, buy another card.

Ask the retailer for a card with no fees or fewer fees. If you’re buying the card online, 

check a different website.

•	 Is there a toll-free customer service number?

Finally, think about buying a card of a small denomination – say, $2 – first. It may provide the best 

value because if something goes wrong, your loss is limited. 
1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

July 2010

If your pre-paid phone card doesn’t work as advertised – even after you’ve called the customer 

service number – contact: 

The Federal Communications Commission 

esupport.fcc.gov/complaints.htm

1-888-CALL-FCC (1-888-225-5322); TTY: 1-888-TELL-FCC (1-888-835-5322)

The FCC regulates interstate and international communications by radio, television, wire, satellite, 

and cable.

The Federal Trade Commission

ftc.gov/complaint

1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261

The FTC works 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 get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. Watch a new video, How to File a Complaint, at 

ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel 

Network, a secure online database and investigative tool used by hundreds of civil and criminal law 

enforcement agencies in the U.S. and abroad.