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How Prepaid Phone Cards Work

April 15, 2012 | Comments: 0 | Views: 201

For many years, Australians had been charged far too much for their international calls. Today they have the option of making international calls using a several alternative methods to their fixed phone line carrier.

Phone cards are a great way to make calls overseas without risking yourself to bill shock. Consider that a standard Home Phone plan with Optus currently charges you approximately $3.40 for each minute when you call Greece. A phone card on the other hand will charge you less than 5% of this price.

How can prepaid carrier cards be so cheap? Below we will describe how a prepaid card is actually built and how the rates are determined. Hopefully it will give you some confidence in using these services in the future.

Phone cards can be purchased from just about every corner store in Australia. Milk Bars, convenience stores and even supermarkets stock them. You can even purchase them online. The minimum recharge value is usually $10.

Most cards focus on a specific country or a geographic region, eg India or Asia. When you purchase your card you are provided with an access number. When you dial the access number a voice prompt will request a PIN (Personal Identification Number) from you.

At this stage, the phone card will usually tell you the balance left on the card and then request that you dial your destination number.

As you make your phone call, the company behind the card, identifies the country that you are dialling and then establishing a route for your call. Behind this route are a series of potential carriers that the phone company has an established relationship with. Based on price and the quality of the route, the best carrier will be selected and your call sent through to them.

Prepaid phone card producers are able to purchase "minutes" in bulk from various carriers such as Telstra, MCI, WorldCom, Deutche Telecom, BT. These "minutes" are then bundled together into a Phone Card which focuses on a region or a specific country. This is where the savings really kick in and they can be in the order of 95% compared to what you could be paying if you dialled direct via your fixed phone provider.

Most of these calls are made over the internet, similar to what you do with a VOIP call or even with a service like Skype.

In order to remain competitive, many fixed phone line providers have developed options that enable their customers to purchase credit which will give them competitive international calls eg Optus World Saver. These services are usually add-ons to you standard fixed phone plan.

Remember you have options when it comes to making your international calls. Don't just settle on what your home phone carrier is offering you. Look at the alternatives on offer and save.

My Name is Ranya Georgalas and I enjoy blogging about all sorts of topics. I work in Marketing, Social Media and Affiliate Marketing. I started blogging several years ago and now I own many blogs. The most popular being

Source: EzineArticles
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