900 Numbers (Pay Per Call)

A “pay-per-call” service is any service a consumer pays for over a special phone line at a charge greater than the basic cost of the call. Most commonly, consumers call 900-numbers to listen to information or entertainment programs or to participate in group conversations. In addition, some 800-numbers, which have traditionally been toll-free, now charge consumers for calls.

Consumers and businesses often find that these charges are “crammed” onto phone bills without their knowledge or consent. Crams are charges for services that were never ordered, authorized, received or even used.  This type of telecom fraud is easier than most think. It is often not the one-time charge that is the problem, but the recurring fees that go unnoticed by the consumer once the cram is placed on the bill.

Cramming of recurring charges generally falls into two general categories: club memberships, such as psychic clubs, personal clubs, or travel clubs; and telecommunications products or service programs, such as voice mail, paging, internet services, calling cards, etc.

Laws Protecting Consumers from 900 Toll Fraud

When dialing pay-per-call services, consumers in the past did not always know how much the call would cost and what they would get for their money. To help them get this information more readily, Congress passed the Telephone Disclosure and Dispute Resolution Act in 1992. This Act required the Federal Trade Commission (FTC) to adopt rules governing the pay-per-call services industry. The FTC’s 900-Number Rule, which became effective November 1, 1993, covers the advertising and operation of pay-per-call services, as well as billing and collection procedures for those services.

Individual consumers and business have the right to dispute unauthorized charges that appear on a telephone bill. Be especially alert to charges for calls to 900 numbers, which may or may not be legitimate. These calls are NOT toll-free; on the contrary, sometimes the charges can be quite high.

Removing Unauthorized Charges from a Phone Bill

If you or your business has been the victim of unauthorized charges to your bills, the first step in rectifying the situation is by contacting your local carrier immediately.  Provide as much information as you possibly can regarding the charges and ask that your line(s) have a 900 number “block” placed on them for future protection. The FCC requires local phone companies to make blocking available — where technically feasible — for a “reasonable” fee. However, any subscriber with a new number can request free blocking within 60 days after service begins.

Don’t expect your local phone company to go to bat on your behalf if there are multiple past charges due however. If there is a problem in removing the charges, you may have to go directly to the company or companies that have issued the original charges to get a refund.

Tips for Staying Out of 900 Number Trouble

1) Deal only with reputable companies. Some companies or organizations sponsor 900 number services for opinion surveys, information, entertainment or other services. Before you call a 900 number, be sure you understand the cost of the call and the nature of the information or service you’ll receive.

2) Think twice before calling a 900 number for a “free” gift. Television ads, postcards and telemarketers may urge you to call a 900 number to get a “free” prize. But you pay for the so-called free gift by making the 900 number call. The provider of the service usually makes money on a per-minute basis, so there’s an incentive to keep you on the line.

3) Don’t confuse 900 numbers with 800 or 888 numbers. You pay for a 900 number call. The company pays for most 800, 888, or other toll-free number calls.

4) For the workplace, implement a written policy that outlines exactly the kinds of calls employees can and cannot make.  In most cases, 900 number calling should be blocked for work related lines.  Review bills regularly to spot unauthorized charges.  Conduct a thorough telecom audit of all bills to uncover crams that have been placed on bills.  This action alone could save your company thousands in unnecessary phone charges.

5) Talk with your children. Make sure they understand they shouldn’t call 900 numbers without your permission. Be sure to explain to them the difference between a toll free call like 800, 888, or 866 and a “pay per call” 900 number.

It seems as if the toll-free services have been around since the early days of the telephone. It was not until the late 1970′s, however, that the first toll-free numbers (800 numbers) came into existence.

We can credit the invention of the 800 Toll-Free Number System to one man – Roy P. Weber (1945-2005) from Bridgewater, NJ. The seemingly simple concept of allowing customers to make long-distance calls without being charged helped create new industries such as 900 number calling, large call centers, infomercials, etc.

5 Tips for Optimizing Toll-Free Services

As with all aspects of telecommunications, there are always methods and strategies for optimization that will get the most out of the services you currently have in place. Optimizing toll-free services will not only save you money, but it will help streamline your operations and make your telecom department more efficient in the long run.

The following are a few optimization tips that you can begin to use immediately.

Tip #1) Renegotiate Current Services With Carriers

Telecom contracts come due quicker than we all like, but this is the perfect time to renegotiate the toll-free services you currently have in place. Since both local and long distance carriers can provide these services, your collection of toll-free numbers can be a terrific leveraging tool to renegotiate other contract terms.

Depending on the type of business you run, toll-free services could make up a huge part of the overall revenue by your LEC or IXC. Rather than lose the business, carriers will be more than willing to negotiate terms and details.

If your business is growing, ask for new toll-free numbers as a “bonus” to an existing contract. You may also be successful in asking for your current carrier to waive service fees wherever possible. Always use these services as a leveraging tool wherever possible to help reduce costs of other telecom services your carrier provides.

Tip #2) Consolidate Numbers Wherever Possible

As a company grows, so does its arsenal of toll-free numbers. Over time, many of these numbers may go unused for long periods of time – even though they are still being paid for each month. Periodically take inventory of all of the toll-free numbers you have in service, then see where consolidation can be achieved.

For example, most businesses use these numbers to reach a specific location or department for the convenience of the customer. The customer calls a discrete toll-free number to speak with that department – tech support, customer service, etc. Rather than have a customer get caught in a myriad of voice mail options to reach a destination, a separate toll-free number is used for each location.

One aspect of consolidation can be achieved by simply discarding 800, 877, 888, or 866 numbers that are no longer in use. Another is embracing the concept of having just “one number”, then using routing features within the toll-free number service (or your PBX) to route the calls to the departments they are addressed to. The “one number” concept makes it much easier to manage and control costs.

Tip #3) Consolidate Service Contracts

As businesses grow and expand to many locations and departments, the toll-free services portion of its telecom department often becomes fragmented – multiple numbers, multiple vendors, etc. When this scenario becomes evident, it is best to consolidate these services under a single, or “master” contract. By doing so, you will not only be in a position for more favorable rates and terms, but it will also result in more efficient trunk usage as well.

Tip #4) Cut Costs By Utilizing Caller ID Services

Incoming toll-free services are billed by the time duration of the call. Cut the time of the call and you will automatically reduce the cost of the call.

Caller ID services have the ability to be interfaced with computer systems and database records. Incoming calls can now provide an operator with caller history immediately, making it easier to recognize the needs of the caller before the call begins. This scenario puts the operator in a much better “informed” position to either help the customer quicker, or sell more products faster based on the information that is presented to them at the onset of the call.

Tip #5) Allow Employees Toll-Free Access to Check Voicemail

Toll-free numbers can be a terrific way to help cut costs for calls to the home office. Checking voicemail via long-distance calling, wireless roaming, or local toll rates can be more expensive than utilizing the company’s toll-free number to check voicemail.

Provide your traveling employees with access to check voicemail or communicate with the home office. This will not only save money, but it will be easier to track incoming calls to the corporate office via a toll-free line than expensing these calls from wireless bills, or home office bills.

Toll-free numbers will be part of the business environment for many years to come.  Continual optimization of these services is worth the extra effort to help rein in costs.  Optimize today for greater telecom savings tomorrow.

Submitted by: TelCon Associates