Cracking Down On Poor Prepaid Phone Card Services

For migrant workers, new immigrants and business expatriates, prepaid phone cards are good items to carry, especially when one is trying to call back family and friends back home. There are a lot of phone cards sold in the market today, and generally most offer affordable deals and charge balanced per minute rates, and have good, quick connections.


In a 2004 study led by University of Georgia economics professor emeritus Julia Marlowe, her team found out that that the per-minute rates for some prepaid call cards were on average 87 percent higher than those advertised. These findings are helpful in informing consumers about the hazards associated with just buying any call card out there, as they need to compare the quality of service offered by each provider, to find the best ones suited for them.


How Some States Are Cracking The Whip On Erring Card Providers


In the past years, attorneys general in states like Florida, California and several other states have started to take a much closer look at the phone card industry, and so has the Federal Trade Commission.


A member of the US congress, Rep. Eliot Engel, D-N.Y, also introduced legislation to regulate the prepaid call card industry. The move comes after communications giant IDT Corp. of Newark, new Jersey settled its own decade- long class-action lawsuit recently over allegations it failed to adequately disclose its charges. At present, the firm is leading the call for further regulation of the industry at the state and federal levels.


According to the head of IDT, "what we'd like to see is an honest industry, where everyone is held to the same standard that we hold for ourselves". These days, the most sought-after phone cards among migrant workers, expatriates and immigrants are those that give very affordable per-minute rates to countries like Mexico, China, the Philippines and India.


Consumers Need To Shop Smart To Get The Right Cards


In fast-paced times and ever-changing markets, consumers need to be always conscious of the fact that they need to compare the quality of the products or services they avail or purchase. According to consumer welfare study, it revealed that discount clubs, drug stores tend to offer good deals when purchasing prepaid phone cards. Consumer welfare organizations stress that once a person finds a card with a suitable price, they should first start by asking relevant questions, like “who is really providing the service?, “what are the terms and conditions, and “does the card have a toll-free number”.


The per-minute rates of most prepaid phone cards today has considerably dropped, and this is due to the tough competition among different service providers. However, the minutes are only a small part of the larger equation, as different service providers may levy an array of charges or fees, from connection charges to weekly or monthly fees simply for maintaining a card. The cards are truly sought-after tools and are frequently used by recent immigrants, business expatriates, military personnel, migrant workers, students and travelers.

Vanessa Arellano Doctor
http://flatratephonecard.com