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How Calling Cards Work - by Michael Olativ

How do calling cards work? And, why should I care?

Well the simple answer to the second question - is; knowledge is power, and an educated consumer is the best consumer. Do calling card rates sometimes sound too good to be true? Well most of their rates are true, of course with some exceptions, and understanding how they work will help explain why.

Now for the answer to the first question; all calling cards are basically used in the same way, you dial a toll free or local access number, enter your PIN when prompted, then the number you want to call - then your call is connected. A very simple process but this is only the beginning.

Calling card companies purchase the minutes you use in bulk, sometimes even by the millions. Anyone who has ever shopped at a "Sam's Club" can understand the value of buying in bulk. The big Phone companies, who actually own the lines, offer huge discounts for bulk purchases because most of their calling capacity often goes unused. This is a very similar concept to those discount travel companies...

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