For many consumers, calling cards are both convenient, cheap, and enables us to keep in touch with friends and family far away. However, a card that offers a decent rate, little or no fees, or even one that works is increasingly difficult to find.

In an article published a few days ago, MSNBC reporter Herb Weisbaum found that Americans spent $4 billion on prepaid calling cards in 2007, and projected to spend $6 billion in 2008. That in itself wouldn’t be so bad, if the prepaid long distance card industry wasn’t swindling hapless consumers out of their money.

With fees (connection, hang-up, and admin fees), calling conditions, and rates that are illegible, hard to find or even understand, it’s nearly impossible for a buyer to know exactly what rate they are receiving prior to making a purchase despite a particular card’s claim to give you a certain number of minutes to a given country.

The unfortunate statistic to this is that many consumers of these calling cards are immigrants, foreigners, and people who can’t afford a long distance plan or a home telephone. These unfortunate people are being ripped off by an industry that is seemingly unregulated.

However, there is hope in sight! According to the article:

Congress may soon reign in this industry. The Calling Card Consumer Protection Act (H.R. 3402) passed the House last month. A similar bill (S. 2998) is now being considered in the Senate.

These bills will require companies offering these services to give proper disclosure of all terms and conditions, rates, and customer service support lines to call.

I have used a few calling cards to keep in touch with friends in Nicaragua and my experiences have generally been positive. So here are some tips that may help you out:

• Only buy cards from a recommended brand and from a reputable retailer that can offer some customer service or refund. Buying cards from Wal-Mart is certainly less risky than buying from a random convenience store.
• Once a card is activated, attempt to use that card completely on a single call. Carrying a balance on a card makes it susceptible to hidden admin fees or periodic charges. It may be better to use four $5 cards and activate as needed, instead of buying one large $20 card.
• Try using Skype. Calls between two computers using Skype is free, but calls from a computer to a phone isn’t. Skype calling rates are very competitive and contains no hidden fees except for a 3 month inactivity fee.

  Skype may not be convenient (requires a computer and Internet connection), and the quality may be spotty at times… but you will always get a connection, dropped calls are rare, and there is customer service if needed.

For what it’s worth, three cards I have used in Toronto are: Cici, Minute Pass, and Hola Amigo. All three cards are good. Cici in particular offered 15 minutes of continuous talk time to Nicaragua for $5 (or 33 cents/minute).

I also have used Skype to call Bluefields a few times. One experience was pretty poor, but other times are excellent.

Have you had a bad experience with a calling card? Do you have a brand to recommend? Share it with us!

Technorati Tags: long distance, telephone, Calling Card Consumer Protection Act, tips, Skype, hidden fees, calling card

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