Calling cards are a way to buy voice calling time on a prepaid basis. Calling cards are also known as phone cards.

Calling cards are used for a variety of reasons - most all of them to do with saving money. A few of the biggest are:

• To save money off the high per minute rates charged by your main landline or mobile carrier
• To provide voice calling access when you are unable to have your own regular landline or mobile phone service
• To provide a way to make calls when you are traveling and don't have access to your regular phone service

Calling cards are designed to be used from any kind of phone - landline, mobile, payphone, office phones, etc. However, supplemental charges may apply for calls made to or from certain kinds of phones (e.g., mobile or satellite phones).

Calling cards work by providing access to the telecommunications network of the phone carrier that backs the card. The voice calls you make using a card are carried over that phone company's network.

Using a calling card involves dialing into the phone network of the carrier using 'access numbers'. Once you enter whatever necessary account or other information is required, your call is then routed onto the carrier's network. The calling card carrier then completes the call to your destination over their network.

Calling cards may be bought directly from the issuing calling card carrier or from a wide range of retail intermediaries. Places where cards can be bought include many types of retail stores and a variety of online retailers. Cards are also often packaged specifically for companies and other organizations and given away as perks.

Calling cards can be obtained in two forms, but they both work the same.

• Physical cards that look something like a plastic gift card and that are generally sold via retail stores
• Virtual 'cards' that are usually conveyed via email and that are generally sold online

In either case, the calling card vendor provides to you certain information about the card that enables you to use it. Typically this information includes:

• A unique account number or ID
• A unique PIN or pass code - although many online cards support PINless dialing
• A set of local or toll-free access numbers by which you can dial into the carrier's network

Calling cards can be used to make calls between any two locations anywhere in the world. Though they can be used for local calls, most people use calling cards for long distance calls - either long distance domestic calls or long distance international calls.

Calling cards are priced in a variety of ways - so many that calling card pricing can get very confusing, very quickly.

One thing that all calling cards have is an advertised per minute rate for calling between any two locations (the origination and destination locations).

The applicable per minute rate will, of course, vary depending on the the specific locations involved. The rate differences can be very significant. However, calling card per minute rates are generally much, much lower than rates for regular landline or mobile phone service.

Per minute rates can also vary based on the type of phone being called - e.g., rates to call mobiles are often higher, calls to satellite phones are definitely higher.

When shopping, be aware that per minute rates can not only vary significantly between vendors, but also between cards from the same vendor. That means you nned to look carefully at the pricing for each card you are interested in.

In addition to per minute rates, many companies charge extra fees and surcharges that get added on top of the per minute rates. These extra fees can dramatically increase the advertised per minute rate - sometimes doubling or tripling the advertised per minute rate of a card!

Not surprisingly with all these confusing fees, there is a good bit of funny business that goes on in marketing calling cards to the point that calling card fraud has become a major problem. The problem is large enough to warrant action by Federal and State authorities in the US and elsewhere worldwide. At least in the US, these actions have led to improved fee disclosures and less aggressive marketing practices.

But back to the extra fees, there are a number of additional pricing elements that calling card companies may apply on top of the per minute rate. These include, but are not limited to:

• Connection fee
• Maintenance fee
• Carrier fee or surcharge
• Payphone fee
• Toll-free access number fee

As you shop for a card, you should look carefully to see what pricing mechanisms apply and how these might increase the advertised per minute rates.

Click here for more information on calling card pricing.

And read elsewhere throughout this site for additional information on anything related to calling cards.

Some worthwhile pages to check out might be:

• Biggest calling card companies
• Calling card ratings summary
• Recommended calling cards
• Top calling card buying tips
• How to spot hidden fees
• How to avoid scams
• Comparison of calling cards vs. VoIP

Leave a comment below if you have any questions.

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