Long-distance service

Long-distance service consists of three major service types: outbound, inbound, and calling cards. Outbound long distance is what most of us know as direct dial long distance. To complete the call, the caller dials

1 + area code + number

Inbound long distance, also known as toll-free service, refers to a caller dialing an 800 number to reach a business. It is a toll-free call for the caller; the toll shows up on the business’ long-distance bill. Since the finite number of 800 numbers is running out, new numbers such as 888 and 877 are now used for toll-free calling.

Calling cards are most frequently used by callers who are traveling. Rather than use coins in a payphone or cause a charge on a host’s long-distance bill, calling cards offer a caller convenience and itemized billing each month. The complex world of long-distance service is not as baffling if you understand these three categories of any long-distance calling.

How a calling card call works
Calling card long-distance rates are higher than outbound and inbound rates. The cost of a calling card call normally includes a surcharge in addition to the per-minute rate. The surcharge may be as little as $0.15 per call or as much as $2.50 per call for some older cards still in circulation. The surcharge is designed to cover the cost of setting up the call.

During the past few years, the trend is that surcharges are lower or not charged at all. A business today must choose between cards with low rates that have a surcharge, or flat-rate cards that have no surcharge. In general, a business that makes very brief calling card calls should use a flat-rate card. Businesses that make long calls are probably better off with a traditional card that charges a surcharge. On a typical AT&T pricing plan, the surcharge of $0.35 and the cost per minute is the same as the direct dial outbound rate.

Use a discount carrier

The simplest way to cut your costs associated with calling cards is to switch to a discount carrier that specializes in the service. These niche carriers, such as VoiceNet, offer calling card rates that are usually lower than full-service carriers’ rates. VoiceNet advertises heavily in in-flight magazines and uses a wide network of independent sales agents. VoiceNet’s current program is a flat rate $0.149 card with no surcharge, which is one of the lowest rates in the industry.

Occasionally, other discount calling card providers spring up with rates that sound too good to be true. Be careful about doing business with these companies because their actual billed rates may be higher than their actual rates. When choosing a discount carrier, choose a stable carrier that has been in business for more than 2 years.

Once you have chosen the discount long-distance carrier for your calling cards, you should compare the cost. Normally, you can give your current calling card bill to the sales representative who will analyze it and offer a cost comparison. It is a good idea to then do your own comparison.

Prepaid cards
Prepaid calling cards are very lucrative for carriers, which is why they can afford to give them away as gifts so often. These cards are so lucrative because carriers get the revenue from the customer before they actually provide the service. In many cases, the carrier never does provide the service. Calling cards expire, and many are thrown away when they only have a couple of minutes remaining.

Most businesses should stay away from prepaid cards because they hurt cash flows and are difficult to manage. The expense of paying for calling cards before you use them shows up in the company’s books at least 2 months before it would have shown up with traditional pay-after-you-use-them cards. Keeping track of employees who use calling cards is another drawback of prepaid cards. Once the cards are issued, you never know how much they are used because the carrier will not send you a bill that shows the usage.

If you are willing to keep track of all the users yourself, then prepaid cards may be for you. For businesses that use temporary employees or fear their employees will fraudulently use calling cards, then prepaid cards may be the best option.

A few carriers offer a rechargeable prepaid card. ATX, a regional longdistance carrier in the Pennsylvania area, offers a superior rechargeable prepaid card. With rechargeable cards from ATX, a manager can issue cards to traveling employees with a limit, such as $50 per month. If the employee tries to make more calls, he has to call the home office and ask the manager to recharge the card. Rechargeable prepaid cards are very successful in limiting employee abuse and fraud.

Once a perpetrator obtains your calling card number and PIN, he can rack up thousands of dollars in fraudulent billing in just a few days. Using rechargeable prepaid calling cards that have a limit will minimize your risk of being defrauded.

No comments:

More?