Why do the minutes on pre-paid calling cards cost so much?

Fraud, that's why. The entire pre-pay concept can be easily compromised and somebody has to pay for it. Who is that somebody? YOU are.

Pre-paid subscription cards are essentially pay-in-advance systems. There's is no such thing as an uncollected bill. The same is true for pre-paid telephones. Anyone can have one. Past credit is no problem. Such phones are a favorite for terrorists as they are virtually non-traceable.  

Many things can go wrong with pre-paid cards:

  • A dishonest printer can run a second set and sell them through the black market before the original set gets delivered to whomever ordered and paid for them. (Yes, this has happened!)
  • The most common fraud associated with pre-paid calling cards is when the user recharges the minutes via use of stolen credit information. By the time the crime is discovered, if indeed it is EVER discovered, the minutes have long been used up.

There are no absolute statistics available to tell us the true fraud losses on the pre-paid card system, although the estimates run as high as 30%. But since YOU pay a very high charge per minute when you opt to use a pre-paid calling card, certainly well beyond the 30% that goes into the pocket of the fraudsters, who cares?

Get mad. Take control.
Fight Fraud America!