A prepaid phone card is basically exchanging
money upfront for minutes to make long distance phone calls. A customer
pays a certain amount in exchange for telephone time. The amount
of minutes is based on the rate table that illustrates what the
current rate (cents/minute) to a particular destination is. The
balance of the phone card is tracked through the use of a pin number
so that the service carrier can record the calls you make and the
appropriate amount to deduct from your phone card.
1.2) Buying Minutes
1) Cheaper than "regular" rates
Phone cards have much better rates than a traditional long distance
company. This is possible because phone card companies provide
higher volumes of traffic for the service carriers. Higher volumes
translate into lower prices for businesses and the customer.
2) Budget Control
Phone cards are also an excellent way of
controlling your budget. Rather than worrying about high phone
bills, phone cards provide limits in spending. A $20 phone card
is good for only $20. You cannot spend anymore than you have already
prepaid. Consequently, customers do not have to constantly worry
about expensive phone bills.
1.3) Usually a time limitation for using
Almost every phone card has an expiration date.
If the balance on the phone card is not used up before the expiration
date, then the remaining balance is lost.