Know what you are getting: Tips on buying a phone card

Every  year, we spend billions of dollars purchasing phone cards to keep in touch with family and friends.  As the phone card industry has boomed, it has also gone pretty unregulated – leading to problematic consumer practices.  Thankfully, recent investigations by the FTC and Attorney General’s Office in New York have begun calling attention to some of the most common suspicious practices taking place in the phone card industry.  For example, these investigations found that the rates were usually not disclosed at point of sale or on the card, and numerous fees were listed on the back. Many had weekly maintenance fees, and fees for calls to cell phones. Many also said rates and fees were subject to change without notice.

To help you understand and avoid these unscrupulous practices Consumer Reports developed a useful tip sheet with tips and warnings to help you chose the best card for your needs without getting scammed.

Click here to read: International phone cards: Are you getting your money’s worth?

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