A prepaid phone card or calling card is exactly what the name implies. You pay a fixed amount up front which may be for units, minutes or in your national currency. Typically the time based phone cards come in increments of 100, 300, 600, or 1000 minutes. Dollar based phone cards start at $5 and go up to around $300. When you make a call, the total cost of the call (which is often made up of several components) is accumulated and the remaining value on the card is reduced by the cost of the call.

Pre-paid cards have several major advantages. These include:

• Strict budget control.
• Flexibility in choice of carrier.
• Cost effective for travellers in hotels.
• Cost effective for students and scholars.
• Fund Raising.
• Advertising Prizes and Promotions.

Most prepaid phone cards are used until the value of the card is reached or the card expires (whichever occurs first). They are then discarded and a new one is purchased. Some pre-paid calling cards can be recharged.