Prepaid phone cards can be a low-cost way to call family and friends in other countries. They are easy to use. But if you buy cards often, your costs can add up.

Rates and fees use up the money in your card. Rates are your per-minute costs. Rates vary a lot, from less than one cent to almost 50 cents per minute. Fees are all the extra charges. You might pay a fee after each call or a fee each week, as well as other fees.

Cost-Saving Tips

Here are some tips for making your money last longer:

■ Before you buy, read the details on the back of the card. If the store will not let you, go somewhere else.

■ Try to buy at a local store, so you can go back if there is a problem.

■ Look for cards without fees.

■ Look for new cards from a company you know. They often offer lower rates for the first few weeks.

■ Do not buy too many cards at once. The rates may increase before you use all the cards.

Many people rely on prepaid phone cards to reach family in other countries. That’s why Consumer Reports decided to investigate the cards—and find out if people were getting their money’s worth.

Consumer Reports sent secret shoppers to buy more than 130 cards in seven communities in New York State. We made more than 100 calls with the cards as part of our investigation.

Choose the right card for your needs

If you make long calls Choose a card with low per-minute rates.

If you will use your card for several calls Choose a card with low fees.

If you do not make calls often Choose a no-fee card. You can find them through national retailers or online.

If you make calls to one particular region Choose cards that advertise good rates in that region. (The rates in other regions may be higher.)

If you make calls to several regions Choose cards that advertise “global calling.” Or buy more than one region-specific card.

International Phone Cards: Are You Getting Your Money’s Worth?

■ Look for cards with local access numbers. Most cards charge higher rates when you use toll-free access numbers.

■ Check to see if the card expires after a certain date or time period.

■ Make sure that the coating over the PIN number has not been removed before you buy it, so you know that no one else has used the card.

Learning about your card’s rates

Your cost-per-minute may change for each call.

Learning about your card’s fees

Card fees can reduce your talking time by half or more!

■ Listen to the “minutes available” announcement when you make a call.

■ If you like a card and want to buy it again, be sure to check the rates, as they can change.

■ Most cards round up the time used to the next minute. But some cards round up more.

■ Many cards charge an extra $1 for calling from a pay phone.

■ Many cards charge an extra 2–5 cents per minute if you use a toll-free access number.

■ Some cards charge a fee of $1 every week or two, starting the first day you use the card.

■ Many cards charge higher rates for calls to cell phones.

■ Some cards charge higher rates after the first call.

■ You can try calling the toll-free customer service number to check on your cost per minute.

■ Some of the larger phone card companies have websites for looking up rates.

■ Some cards charge a fee when you hang up, or even before your call is over.

■ Some cards list a range of fees, such as a hang-up fee of “5 cents to $1.00.” You can ask customer service what the actual fee is before you call.

Is there a cheaper way to call?

■ Home and cell phone companies may offer low-cost monthly plans for international calling.

■ Web-based calling can save you money, and it is easier to find out your per-minute rates. If the person you call also uses a computer, costs are even less.

You can report problems with a phone card company to:

The Federal Communications Commission 1-888-CALL-FCC www.fcc.gov/complaints

The Federal Trade Commission 1-877-FTC-HELP www.ftccomplaintassistant.gov

The New York Attorney General Consumer Complaints Office 1-800-771-7755

The New York State Public Service Commission 1-800-342-3377

In other states, contact your state Attorney General’s office www.naag.org

Funds for this project were provided by the New York State Office of the Attorney General. The views and statements expressed herein do not necessarily reflect the views and opinions of the Attorney General.

Consumer Reports is the world’s largest independent product-testing organization. Founded in 1936, Consumer Reports has over 8 million subscribers to its magazine, website and other publications. Its advocacy division, Consumers Union, works for health reform, food and product safety, financial reform, and other consumer issues in Washington, D.C., the states, and in the marketplace. For more information visit www.ConsumerReports.org or www.ConsumerReportsenEspanol.org