![Phone-Card-Aquarius](https://upload.wikimedia.org/wikipedia/commons/b/ba/Phone-Card-Aquarius.jpg)
A telephone card, calling card or phonecard for short, is a
credit card
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
-size plastic or paper card, used to pay for
telephone
A telephone is a telecommunications device that permits two or more users to conduct a conversation when they are too far apart to be easily heard directly. A telephone converts sound, typically and most efficiently the human voice, into e ...
services (often international or long-distance calling). It is not necessary to have the physical card except with a stored-value system; knowledge of the access telephone number to dial and the PIN is sufficient. Standard cards which can be purchased and used without any sort of account facility give a fixed amount of credit and are discarded when used up;
rechargeable cards can be topped up, or collect payment in
arrears
Arrears (or arrearage) is a legal term for the part of a debt that is overdue after missing one or more required payments. The amount of the arrears is the amount accrued from the date on which the first missed payment was due. The term is usually ...
. The system for payment and the way in which the card is used to place a
telephone call
A telephone call is a connection over a telephone network between the called party and the calling party.
First telephone call
The first telephone call was made on March 10, 1876, by Alexander Graham Bell. Bell demonstrated his ability to "ta ...
vary from card to card.
Calling cards usually come equipped with
PIN
A pin is a device used for fastening objects or material together.
Pin or PIN may also refer to:
Computers and technology
* Personal identification number (PIN), to access a secured system
** PIN pad, a PIN entry device
* PIN, a former Dutch ...
for user protection and security. Most companies require user to enter the PIN before granting access to the calling card's funds. PINs often are printed on a piece of paper found inside the calling card's packaging. Once the users makes their first call, some companies offer the option of eliminating the PIN altogether to speed up the calling process. Companies that sell virtual calling cards online typically PIN via email.
Stored-value phone cards
A stored-value phone card stores the available credit balance in an analog or digital memory physically embedded in the card. This balance can be read by a public
payphone when the card is inserted into the card reader. This is superficially similar to a bank
automated teller machine
An automated teller machine (ATM) or cash machine (in British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, fun ...
, but a stored-value card is more closely analogous to a change purse. While ATMs (as well as the remote memory systems discussed below) use the card merely to identify the associated account and record changes in a central database, stored-value systems make a physical alteration to the card, or write data to an embedded chip or magnetic stripe to reflect the new balance after a call. Some magnetic cards also show the remaining value.
Used primarily for payphones, stored-value systems avoid the time lag and expense of communication with a central database, which would have been technically complex before the 1990s.
There are several ways in which the value can be encoded on the card:
The earliest system used a
magnetic stripe
The term digital card can refer to a physical item, such as a memory card on a camera, or, increasingly since 2017, to the digital content hosted
as a virtual card or cloud card, as a digital virtual representation of a physical card. They share ...
as information carrier, similar to the technology of ATMs and key cards. The first magnetic strip phonecard, manufactured by SIDA, was issued in 1976 in
Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
.
![TWK (1)](https://upload.wikimedia.org/wikipedia/commons/c/c8/TWK_%281%29.jpg)
The next technology used optical storage. Optical phonecards get their name from optical structure embossed inside the cards. This optical structure is heated and destroyed after use of the units. Visible marks are left on the top of the cards, so that the user can see the balance of remaining units. Optical cards were produced by
Landis+Gyr
Landis is a surname. Notable people with the surname include:
* Arthur H. Landis, American science fiction and fantasy writer
* Bill Landis, American baseball player
*Carole Landis, American film actress
*Charles B. Landis, U.S. Representative from ...
and
Sodeco from Switzerland and were popular early phonecards in many countries with first optical phonecards successfully introduced in 1977 in
Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
. Such technology was very secure and not easily hackable but chip cards phased out the optical phone cards around the world and the last
Landis+Gyr
Landis is a surname. Notable people with the surname include:
* Arthur H. Landis, American science fiction and fantasy writer
* Bill Landis, American baseball player
*Carole Landis, American film actress
*Charles B. Landis, U.S. Representative from ...
factory closed in May 2006 when optical phonecards were still in use in few countries like
Austria
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
,
Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
and
Egypt
Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. It is bordered by the Medit ...
.
The third system of stored-value phone cards are
smart cards
A smart card, chip card, or integrated circuit card (ICC or IC card) is a physical electronic authentication device, used to control access to a resource. It is typically a plastic credit card-sized card with an embedded integrated circuit (IC) c ...
and use an embedded microchip. These were first launched on a large scale in 1986 in
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
by
Deutsche Bundespost
The Deutsche Bundespost (German federal post office) was a German state-run postal service and telecommunications business founded in 1947. It was initially the second largest federal employer during its time. After staff reductions in the 19 ...
after three years of testing, and in
France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of overseas regions and territories in the Americas and the Atlantic, Pacific and Indian Oceans. Its metropolitan area ...
by
France Télécom. Many other countries followed suit, including Ireland in 1990 and the
UK circa 1994–1995, which phased out the old green Landis+Gyr cards in favor of the chip (smart) cards. The initial microchips were easy to hack, typically by scratching off the programming-voltage contact on the card, which rendered the phone unable to reduce the card's value after a call. But by the mid-to-late 1990s, highly secure technology aided the spread of chip phonecards worldwide.
Remote memory systems
Making a remote memory
prepaid or calling card call requires the user to make two calls. It is necessary to dial an access telephone number to connect to the calling card system. There are several methods. One is via a toll-free number, with larger companies offering this internationally. Access through a local number has become increasingly popular in recent years. Toll-free calls are paid for by the recipient (the calling card company), which passes on the cost through higher call charges; total cost of a call to the user is often lower using a local number. When travelling through several local areas a toll-free service may be preferable.
Once connected to the access number, the account is identified by keying in a PIN (the most popular method) or by swiping a card with embedded chip or magnetic stripe. After validation the balance remaining on the card may be announced, and the desired number may be keyed in. The available minutes may be announced, and the call is connected. Many cards make a verbal announcement if credit is running out.
Prepaid or calling cards are usually much cheaper than other telephone services, particularly for travelers who do not have easy access to other services. Hotel telephones can be very expensive, particularly for long-distance calls. Cellular services are flexible, but may attract high
roaming charges away from the home area.
Telephone accounts symbolized by a card
The second main technology of phonecards is remote memory, which uses a toll or toll-free access number to reach the database and check for balance on product.
The first public prepaid remote memory phonecard was issued in the United States in December 1980 by Phone Line. As telecom industries around the world became deregulated, remote memory cards were issued in various countries. Remote memory phonecards can be used from any
tone-mode phone and do not require special card readers. Since remote memory cards are more accessible and have lower costs, remote memory phone cards have proliferated. However, the utility of these cards is reduced by the large number of digits that need to be entered during usage. To call a long-distance number, the user first dials the local access number, then keys in the secret code, followed by the actual long-distance number. Based on the long-distance number entered, the time remaining on the card is announced, and the call is finally processed through.
Remote memory phonecards are in essence text; requiring an access number, a unique PIN and instructions. Therefore, the instructions can be printed on virtually anything, or can be delivered via e-mail or the Internet. Currently many websites post phone card details through e-mail.
Phone cards are available in most countries in retail stores, retail chains and commonly post offices or corner stores. In general, remote memory phonecards can be issued by any company and come in countless varieties. They can focus on calling to certain countries or regions and have specific features such as rechargeability, pinless dial, speed dial and more. Phone cards may have connection fees, taxes and maintenance fees, all influencing the rates.
Accounts without a card (Virtual phonecards)
Since the early 2000s calling card service providers have introduced calling accounts not associated with a physical card. Calling accounts can be purchased over the Internet using credit cards and are instantly delivered to the customer via e-mail. This e-mail contains the PIN and instructions for using the service. The service may be prepaid, or may take payment from a credit card or by
direct debit A direct debit or direct withdrawal is a financial transaction in which one organisation withdraws funds from a payer's bank account., https://www.directdebit.co.uk/direct-debit-explained/what-is-direct-debit/ Formally, the organisation that calls f ...
. Some prepaid card companies allow accounts to be recharged online manually or automatically via a method called auto-top-up.
Some virtual cards offer
PIN
A pin is a device used for fastening objects or material together.
Pin or PIN may also refer to:
Computers and technology
* Personal identification number (PIN), to access a secured system
** PIN pad, a PIN entry device
* PIN, a former Dutch ...
less Dialing, either by dialling a number unique to the customer, or by recognising the telephone number which originated the call by
Caller ID
Caller identification (Caller ID) is a telephone service, available in analog and digital telephone systems, including voice over IP (VoIP), that transmits a caller's telephone number to the called party's telephone equipment when the call i ...
and relating it to the appropriate account. Some virtual phone cards allow customers to view their call detail reports (CDRs) online by logging into their account.
The virtual phonecard has become a multi-billion US dollar industry as of 2009, with a number of large corporations and smaller dot com companies. While long-distance inland calls have been offered by calling cards, by the mid-2000s conventional carriers reduced their rates to be competitive; however in many countries calling-card type indirect services can be much cheaper than normal calls.
Phonecard as an artifact or collectible
Telecom companies have placed
advertising
Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers. It is typically used to promote a ...
on phonecards, or featured
celebrity
Celebrity is a condition of fame and broad public recognition of a person or group as a result of the attention given to them by mass media. An individual may attain a celebrity status from having great wealth, their participation in sports ...
portraits, artwork, or attractive photography.
As the supply of any one design is limited, this has led some people to
collect
The collect ( ) is a short general prayer of a particular structure used in Christian liturgy.
Collects appear in the liturgies of Catholic, Eastern Orthodox, Oriental Orthodox, Anglican, Methodist, Lutheran, and Presbyterian churches, among othe ...
disposable phonecards. Due to a large number of phonecards, collectors prefer to specialize and collect cards in a certain way. Some collect phonecards that have only one specific chip type or were issued in the same country, while others prefer to get one of everything. Online clubs and catalogs provide collectors with detailed information on phonecards. In addition, these clubs include forums to assist with discussions between collectors.
Support in telephones
Most modern telephones, both mobile and fixed, have memory locations in which telephone numbers can be stored. Some telephones have facilities to make calls through a calling card service whose access details and PIN are also stored in the telephone's memory. This may be implemented in different ways, often by pressing one button before making a call; some telephones support "chain dialing", allowing additional numbers to be dialed when on a call (e.g., dial a PIN and a second number after connecting to an access number). So long as long enough sequences can be stored it is possible to store an access number, pause, PIN, and ultimate telephone number in a single normal phone memory location. Software applications which add calling card support are available for a small charge or free for some
smartphone
A smartphone is a portable computer device that combines mobile telephone and computing functions into one unit. They are distinguished from feature phones by their stronger hardware capabilities and extensive mobile operating systems, whic ...
s.
See also
*
Telephone token
*
Prepaid mobile phone
A prepaid mobile device, also known as a, pay-as-you-go (PAYG), pay-as-you-talk, pay and go, go-phone, prepay or burner phone, is a mobile device such as a phone for which credit is purchased in advance of service use. The purchased credit is ...
*
SIM card
A typical SIM card (mini-SIM with micro-SIM cutout)
A GSM mobile phone
file:Simkarte NFC SecureElement.jpg, T-Mobile nano-SIM card with NFC capabilities in the SIM tray of an iPhone 6s
file:Tf sim both sides.png, A TracFone Wireless SIM card ha ...
*
Notes and references
{{DEFAULTSORT:Telephone Card
Telephone services
Telecommunications economics
Payment cards