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Prepaid Phone Cards May Be More Confusing Than Cost Effective

A prepaid phone card is a lot like the IRS Form 1040EZ. It’s easy to use, but not always your best deal. The recent surge in the popularity of prepaid phone cards has created some confusion in the marketplace. These cards may be purchased just about anywhere, used and thrown away. Some are "rechargeable" allowing users to add "units" with their credit card.

Problems arise when consumers purchase cards in monetary units instead of minutes. They may find out their $10 phone card is good only for a few minutes of calls.

Overseas calls may not be possible or may carry inflated charges. Some "rechargeable" cards may require an activation fee. The Bureau advises consumers to ask when the meter starts running on a card. Some cards will begin deducting units the second the number is dialed while others wait until someone answers.

Consumers should check for an expiration date on a card. Cards may sit in a display for months and already be expired when purchased.

Prepaid phone cards offer travelers great flexibility and they make useful gifts. Shoppers should take time to seriously evaluate each card before making an impulse purchase in the check out line.

The Better Business Bureau does not endorse, recommend, or disapprove any product, service or organization.