Phonecards On-Line - Written by Alan H. Cohen

November 23, 1996


Issue 57


Phonecards On-Line is written and distributed by Alan Cohen


Return to POL Index

News and Views

Administrative Note

I would like to take this opportunity to wish everyone a Happy Thanksgiving. Due to the holiday, and the fact I need some time off, there will be no newsletter next week (November 30) Publication will resume December 7th.

Sports/Non-Sports Card Companies

1994 was a year filled with hope for phonecard collectors that we would finally gain legitimacy in the eyes of other collectors. It’s almost 1997, and we are still struggling. We’ve won one front of this three front war of recognition, which is quite a feat. That is to get the public to know what a phonecard is. For those of you who are new to collecting, did you know about these pieces of plastic three years ago? Probably not. I’ve been collecting for almost three years, and I was one of the early US collectors. When you mentioned the word phonecard to most (and I mean most) people in the US in early 1994, the reaction inevitably was either a person not interested in your conversation, or the question "What’s a phonecard?" That has changed, now it is the exception when someone asks me what a phonecard is. It really is an amazing change if you stop a moment and think about it.

The second front is to get people to use these cards. It does happen, seems that the public has accepted using the cards more easily than the collectors. While usage is probably up among collectors, many still do not use the time on a card that has no PIN scratchoff, and does not expire. That simply does not make sense to me. After the expiration date, the card is the same as a new card. With the current trend of cards being dumped after the expiration date, it makes even less sense not to use the time. I have an interesting perspective no this subject, as my full time job is working at a library. I get to see a lot of wallets open, and in those wallets as people fumble for their library card or identification to get a card, I see a lot of phonecards. I’ll start a conversation about cards, most of these people use them for convenience, but do not collect. I have not asked for any of the cards, because I hope after our conversation they will consider collecting!

The third front is to get people to collect. This brings me back to the header for this story. In 1994, it seemed that phonecards would cross their way to the mainstream. Sports card and non-sports companies were starting to produce phonecard inserts. Upper Deck produced a set of 15 cards in 1994, although these were not inserted into packs. Topps inserted phonecards randomly into packs of their 1994 Stadium Club baseball product. They reported that they were quite pleased with the results, yet Topps has not issued another phonecard insert. Non-Sport sets such as Coors, Bay Watch, Campbell’s and Coke had phonecards in them, but recently I can’t think of any non-sport product with a phonecard insert. I’ve looked at the lineup of 1997 sports cards, and not a single one has a phonecard insert. Looks like a fad that passed to the sportscard industry.

Even reporting of phonecards seems to be decreased. Krause (publisher of many collectibles magazines) dropped their phonecard insert that was issued four times a year. They moved their coverage to a two page spread in their non-sport insert published monthly. Lately, that coverage has gone down to one page. In their monthly sportscard publication, called Sports Cards, phonecards got decent coverage, including a top ten list and other information. Granted this was biased toward sports related phonecards, but better than nothing. This coverage also seems to have disappeared.

The tone of this article may seem negative, but I feel anything but negative toward collecting phonecards. I know from direct experience that there are a lot of collectors out there. Almost 1100 of you receive this newsletter, granted not everyone is a collector, but many of you are. I think we will get to a point of being a larger presence on the collectibles scene, but it will take time. In 1995, I predicted that 1996 would be the big year. I’m still waiting, as are many of you. It will arrive, but it will not happen overnight. In the meantime, enjoy the hobby the way it is. When the day does come that we have phonecard conventions in the US the way you see other hobby shows, we will look back on this as the good old days!

AOL Here I come

A few weeks ago, America On-Line sent waves through the on-line world that they would be going to a flat rate billing system. Their rates are in line with other Internet Service Providers, but with the added value of America On-Line content. Their goal of 10,000,000 subscribers by this summer seemed absurd a month ago, but now seems very possible. I’ve received numerous requests to change mailing addresses from current accounts to AOL. How does this relate to phonecards? AOL probably has the worst on-line area for phonecard collectors of any service. It pales in comparison to CompuServe, which has been having problems lately attracting collectors. However, the infrastructure of CompuServe is unbelievable better than AOL. Since so many of you have AOL accounts, perhaps one day we can set a time to gather to hold an informal conference. Please get back to me with any feedback, if interest is there I will try to organize something.

Visa Travel Money Correction

A reader pointed out that all fees associated with Visa TravelMoney are not necessarily paid up front. I have not received any verification that this is the case, I will report more when I hear more.

AT&T 1996 Phonecard

This is the phonecard that AT&T was selling for $1.00, as reported in POL 55. Douglas Jacobs reports that the user can enter a new PIN before the time expires, to keep the conversation going. The phone time can be used on this card without removing the card from the cardboard backing, so if you have these, use the time on them!!

Phonecards for the birds?

PACKWOOD, Wash.--(BUSINESS WIRE)--Nov. 20, 1996--In the United States, bird-watching is on the rise, with as many as 65 million Americans enjoying the sport.

Now, bird enthusiasts who travel around the nation in pursuit of their hobby can feel good about phoning home to report their latest sightings. Today Tatoosh Motel & Bird Sanctuary, a habitat-friendly travel lodge, and Cliff Keeslar, a renowned wildlife artist, announced they will begin offering pre-paid phone cards that enable users to call from anywhere in the nation for just 18 cents per minute, the lowest per-minute phone card rate currently available.

In addition to saving about 38% over typical phone card rates (most charge 25 cents or more per minute), individuals who use a Cliff Keeslar Signature Series phone card will also be helping fund the breeding and release of native birds in the Northwest.

According to Hans Schnauber, president of Tatoosh Motel & Bird Sanctuary, all profits from the phone cards will go toward the purchase of seed, nesting materials, mated pairs, and other supplies needed for breeding and releasing native birds, such as Washington's at-risk Mountain Quail.

"With the help of phone card revenues, we are able to reintroduce Mountain Quail to their native habitat without relying on federal or state funding," said Schnauber. "Any phone card revenues generated above and beyond the needs of our current, on-site breeding and release program will be directed toward other such causes."

Cliff Keeslar phone cards retail for $4.95 and give users 10 free minutes of long distance. After the 10 minutes are up, those who wish to continue using the cards can reactivate them for long-distance calling at the low rate of 18 cents per minute, about the same rate as the typical residential rate. All phone charges are billed to the user's major credit card. The card can be used in all 50 states.

Contact Hans Schnauber, President, 1-888-828-6674 for more information.

card

J.F. Henry Grand Re-Opening Card

500 Promotional 15 minute phonecards were produced to celebrate the grand re-opening of J.F. Henry, a West Seattle retailer of fine tableware and home accessories. The cards will be given away to promote the store and as an acknowledgment to their customers. Contact Gazelle Telecards at (800) 726-5995 for more information

card

Admiral Junction Phonecard

The Admiral Junction phonecard is Gazelle Telecard’s first in-house promotional card, and second phonecard production following the Alaska Airlines card. 250 phone cards were produced to be given away by Gazelle and the retail merchants co-branded on the back of the card for the purpose of promoting the neighborhood known as Admiral Junction. Contact Gazelle Telecards at (800) 726-5995 for more information

card

The Post Office

If you have not been to your post office in a while, check it out now. If you purchase $20 worth of phonecards, you will receive a $5 phonecard free of charge. While the rates are high, the designs on the cards are nice. I had a conversation with a postal clerk at my local Post Office, and she said that the cards were selling very well there. The promotional campaign suggests that these make great gifts, let’s hope they do!

AT&T Offer

In my latest A&TT long distance bill was a brochure for a FREE Limited Edition 10-minute AT&T prepaid Card Snowflake Ornament. This is an actual ornament for a Christmas tree in the shape of a snowflake with a very intricate design. In the middle it says AT&T prepaid Card and has the year 1996 on the left and right. It also says "Happy Holidays" vertically on top and bottom. The card measures approximately 4" x 4".

You get it free with EVERY purchase of any 2 new AT&T cards.

They show 7 new cards to choose from:

To order call 1-800-225-1718 x24037

The brochure makes it sound as if you get 1 free snowflake card for every 2 cards you buy. So stock up and fill your Christmas trees or use the snowflakes for trades.

Submitted by a reader

Sam's Club

SAM's wholesale club is offering a free 15 minute phone card if you apply for a Sam's club credit card. This card is heavy paper and has the logo on the front. it is blue and white. It utilizes MCI.

Submitted by a reader

Beer Across America Update

"Beer Across America" are advertising a free Sprint phone card with up to 60 minutes in time with purchase of one of their beer "subscriptions". Didn't catch the phone number but it is in the current radio spot. Heard it on 95.5 in the NY market. The phone number is 1.800.854.BEER. this is sort of strange, its 16.95 a month, 299.99 a year!! if you order 6 months in advance prepaid, you get the 60 minute card. Otherwise, for 16.95 a month, you get 12 beers (asst from various states-2 6-pks) a bunch of literature, and a magazine.

From: Samira Abdulhadi

Bob Evans Restaurant

I just picked up a card from our local Bob Evan's Restaurant. The deal is if you purchase $20.00 worth of Gift certificates you get an AT&T 10 unit Bob Evans Phonecard FREE. The Packaging states it's a $5.99 value (.60 per minute) is not exactly a good deal, but if you eat at Bob Evans, you can use the Gift Certificates anytime (they DON'T expire). The card pictures the front of a Bob Evans Restaurant. Not a bad looking card.

From: Dave Berbert

Burdines

The department store BURDINES, is offering a free 10 min. card with purchase of $50 or more.

From: Dave Degelman

TVC Web Offer

GO to: "TVC" at http://www.register.com/tvc/p140.htm for a free 10-min pre-paid phone card. All you have to do is sign the guest book.

From: Phyllis Benitez

Free MCI Card

MCI/Sliders 5 minute phonecard 1-800-921-9050 Its free. They will start sending it on Nov. 19.

From: Kelly Cummin

AT&T/Hyatt

AT&T Hyatt phonecard- 1-800-383-6163 Ext. 14485 If your an AT&T customer its free.

From: Kelly Cummins

Mobil Go Cards

If you're an AT&T True Rewards member, you can get a $10 bonus when you purchase a $100 Mobil GO prepaid gas card. After using $50 on the card, call Mobil and they'll add $10 to the card. To take advantage of this offer, you have to identify yourself as a "True Rewards" member when you buy the card and when requesting the $10 bonus. The order number is 1-800-730-TO-GO. Cards must be ordered by April 30, 1997.

From: Anthony Janakas

Finish Line Purchased

ATLANTA, Nov 20 (Reuter) - Global TeleMedia International Inc said on Wednesday it completed the asset purchase of Finish Line Collectibles Inc, which produces and distributes prepaid telephone cards.

Terms were not disclosed.

The Florida-based company distributes phone cards depicting the licensed marks of leading personalities in NASCAR Winston Cup Racing. It had gross revenues of over $2 million in 1995, the company said.

Global TeleMedia said it expected Finish Line would have a positive impact on its prepaid phone card business.

In the future, Finish Line cards would feature enhanced services available through Global Media's enhanced services platform, the company said.

Master Card has an interest in Smart Cards

NEW YORK, Nov 18 (Reuter) - MasterCard International president and chief executive Eugene Lockhart declined in a telephone conference with reporters Monday to say how much the card association is paying for a 51 percent stake in Mondex International, but he did say a $150 million figure mentioned in a recent newspaper article about a possible deal was "way, way too high."

U.K.-based Mondex, owned by a group of banks and ATT Corp , markets a payment card that uses a computer chip. The cards are commonly referred to as "smart cards."

Lockhart said before deciding to go ahead with its investment in Mondex, MasterCard spoke to "every major regulator in the world." He said the regulators were "impressed" with Mondex, including the ability to audit card-to-card transfers above a variable threshold.

Lockhart said MasterCard will be talking to Chase Manhattan Corp and Citicorp about the smart card pilot program the banks are planning to start in Manhattan.

Rival card association Visa International is a participant in the New York City pilot, along with MasterCard, Chase and Citibank. It is expected that 500 merchants and 50,000 cardholders will participate in the pilot.

A spokesman for Citibank said the pilot is expected to begin in the first quarter of 1997, "probably toward the end of the first quarter."

Asked in the teleconference if a previous smart card project of MasterCard, known as MasterCard Cash, was a failure, Lockhart said it met expectations and was successful in trials in Australia. But he said it was now time to "go for the real thing."

"We are now committed to the Mondex stored value platform as our platform for stored value around the world,' Lockhart said.

Lockhart said research shows that consumers want payment cards that are "fully reloadable" at the point of sale and also at automated teller machines (ATM's).

He said he envisions a day when consumers can use chip-based cards with a telephone or personal computer to download cash, make inquiries or transfer balances, in effect giving users their own personal ATM machine. "The Internet is something that will have major implications for us," he said.

But he also said it could be five or 10 years before a full infrastructure is rolled out around the world.

Lockhart stressed that "stored value" is just one of many functions which the Mondex technology can perform.

Happy Thanksgiving!

Until Next Week,

Alan

Distribution

Phonecards On-Line is written and distributed by Alan Cohen. It is a weekly newsletter devoted to phonecards - Current news, viewpoints, and reviews of new issues. It is distributed free of charge, and available two ways.

1) On-Line on the World Wide Web. The address is: http://www.cardmall.com

2) Direct e-mail. Send a message to: phoneline@cardmall.com

If you wish to be removed from this mailing list, just send a short message saying UNSUBSCRIBE POL