Calling cards industry is huge and problematic at the same time. Many phone card buyers report that they have been ripped off, millions of dollars in total. Some calling cards fail to deliver the promised minutes. Others tack on confusing fees that may not be listed in the microscopic print on the back of the card. Still others round up each call to the nearest three-minute mark.
Lack of Regulation
A 2004 study led by University of Georgia economics professor emeritus Julia Marlowe found that the cost-per-minute rates for prepaid calling cards were on average 87 percent higher than those advertised. However, that's beginning to change. In the past year, attorneys general in Florida, California and several other states have begun to take a closer look at the phone card industry, as has the Federal Trade Commission.
Swindled by the Minute
If a phone card gives rates that are too good to be true, it might just be too good to be true. The most popular cards among immigrants, and the ones least likely to deliver promised minutes, are those offering super cheap rates to countries such as Mexico, Guatemala, Haiti and India.
So be careful on your next phone card shopping. I'll post more articles on how to choose the best calling cards.
