Telephone card

It is not necessary to have the physical card except with a stored-value system; knowledge of the access telephone number to dial and the PIN is sufficient.

Most companies require user to enter the PIN before granting access to the calling card's funds.

This is superficially similar to a bank automated teller machine, but a stored-value card is more closely analogous to a change purse.

While ATMs (as well as the remote memory systems discussed below) use the card merely to identify the associated account and record changes in a central database, stored-value systems make a physical alteration to the card, or write data to an embedded chip or magnetic stripe to reflect the new balance after a call.

Used primarily for payphones, stored-value systems avoid the time lag and expense of communication with a central database, which would have been technically complex before the 1990s.

Once connected to the access number, the account is identified by keying in a PIN (the most popular method) or by swiping a card with embedded chip or magnetic stripe.

The second main technology of phonecards is remote memory, which uses a toll or toll-free access number to reach the database and check for balance on product.

The first public prepaid remote memory phonecard was issued in the United States in December 1980 by Phone Line.

Based on the long-distance number entered, the time remaining on the card is announced, and the call is finally processed through.

Remote memory phonecards are in essence text; requiring an access number, a unique PIN and instructions.

Calling accounts can be purchased over the Internet using credit cards and are instantly delivered to the customer via e-mail.

Some prepaid card companies allow accounts to be recharged online manually or automatically via a method called auto-top-up.

Some virtual phone cards allow customers to view their call detail reports (CDRs) online by logging into their account.

The virtual phonecard has become a multi-billion US dollar industry as of 2009[citation needed], with a number of large corporations and smaller dot com companies.

Telecom companies have placed advertising on phonecards, or featured celebrity portraits, artwork, or attractive photography.