Texans with Prepaid Phone Cards May Be Facing Fees

The Dallas Morning News recently reported that consumer groups are protesting the new collection fee that will be placed on prepaid cell phone cards. In the state of Texas, everyone with a local exchange number is charged 50¢ (as detailed by the State Government) for each access line. These charges lead to over $7.9 million in 911 fees from May 11 to June 10 this year alone for cell phone users.

The controversy comes from how prepaid phone cards will be handled. It’s not clear how many companies are charging the 50¢, but it is believed that over 2 million Texans use the prepaid cards.

Texas Consumer Association president Sandy Haverleh believes that prepaid card companies will solve this problem by just adding a 50¢ to every card, and :

"Fifty cents is just too much out of a $5 card or a $10 card," she said. "I don't think the Legislature intended to have that high a rate."

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Legal Parameters for Gift Cards

With gift card sales expected to reach $1 billion in sales in 2008, so are the regulations according to a recent news article at Manage Smarter.

Regulations on both expiration dates and dormancy fees vary from state to state, yet still pose a major problem when trying to regulate gift cards for a national company. So how do companies keep pace with the growing demand? According to Gonzalo E. Mon, the author of the article, the benefits are still numerous when they can adapt their gift card business quickly to the changes.

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