Over the past few years calling card services have become increasingly popular as a way to access cheap international and national phone calls.

While calling cards are commonly used by travellers, they are also popular with people who make regular international calls. The number of calling card providers and types of cards available have also increased significantly over the past few years, making it difficult for consumers to discern what is the best product.

Generally, calling cards make use of a modified form of Voice over Internet Protocol (VoIP) technology. Consumers call a local or free number, and then their calls are switched through to their destination via the internet. This means the cost of carrying and making the call is substantially reduced, but the quality of the voice connection may be inferior to calls made through the traditional phone network.

The TIO does not receive many complaints about the quality of the services. This may be because consumers simply try another provider in this highly competitive market. Most complaints the TIO does receive are about billing, and terms and conditions.

The TIO completed three systemic* investigations relating to calling card services in April. One was about the accuracy of a provider’s billing systems, and resulted in a referral of the provider to the Australian Communications and Media Authority (ACMA) for investigation. The investigation arose when a complainant alleged that the provider was deducting small, unexplained amounts from their calling card balance. The provider failed to provide enough evidence to substantiate the accuracy of its billing system.

The other investigations concerned the way in which card providers advised of changes to call charges. The TIO’s concern was that consumers may not be aware that prices advertised at point of sale may change, and not know how to obtain current rates before making calls. The TIO’s investigations concluded that the provision of current rates via customer service numbers, point-of-sale posters and websites was sufficient for providers to comply with relevant industry codes.

The investigation, however, highlighted a lack of knowledge on the part of the calling card providers of their obligations to comply with relevant industry codes and legislation. In both cases, the TIO referred the members to ACMA to discuss their obligations.

*The TIO’s Systemic Complaints Investigation Procedure aims to resolve not only an individual complaint but other similar current and future complaints.