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How do prepaid phone cards work?

Related resource areas: Personal Finance


A prepaid phone card is a card you purchase to make long-distance phone calls. Many people use a prepaid phone card because of the card’s convenience—it can be used anywhere and, because you pay in advance, there is no bill. Prepaid phone cards are popular among travelers, students, people who frequently call overseas, and those who haven’t selected a preferred long-distance telephone company. In addition, prepaid phone cards are sold in convenient places, such as newsstands, post offices, and stores.

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