Why Do Calling Card Companies Go Out of Business

Calling card manufacturers are typically anonymous businesses that create products that can be sold now and used later. So many of them go out of business because they have sold their inventory and and they now want to avoid the carrier rates that they will be charged once consumers start to use their card.

===== potential transcript from an illegal calling card operation

Shady Supplier/Broker A: "Let's make 10,000 $5 calling cards with insanely low long distance rates and sell them to local variety stores for $3... they will in turn, sell it to consumers at $5"

Shady Supplier/Broker B: "... but we can't find a carrier to route these calls at such low rates"

Shady Supplier/Broker A: "Don't worry, we'll sell all 10,000 cards, and in one month's time, only about 5% of those cards will have been used by consumers...so we'll take a loss on the carrier rates on that small 5%, the rest will still be sitting at the variety stores".

Shady Supplier/Broker B: "Then what?"

Shady Supplier/Broker A: "Ha, simple, we just cancel our carrier services, and make off with our $30,000 that we got when we sold the cards to the stores.

Shady Supplier/Broker B: "You're smart"

Shady Supplier/Broker A: "Yeah, I am."

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What can the savvy consumer do about this?
a) Avoid the Top 5 Calling Card Purchase Mistakes
b) Buy CiCi, First Choice and Global Papa (USA) Calling Cards from a reputable retailer.

Regards,

Tavis McKenzie
GM, Phone Card Depot

Tags: calling card fraud, cici calling card, global papa calling card, first choice calling card, phone card depot, calling card, phone card