When NYNEX first announced that they were discontinuing their program, they said that unused cards would be refunded. It appears that they have changed their minds, as dealers have had packages returned to them recently. An article published in Moneycard Collector Magazine by Art Becker has stirred up the debate a little. While you will have to pick up a copy of the magazine to read that article, I have received permission from Luis Vigdor or Powell Associates to print a letter he submitted to the editor of the magazine. It reads:
Dear Mr. Church:
"It is so unfortunate that Mr. Becker (a very respected figure in our hobby) decided to write an article on "speculators" for your May, 1997 issue, without getting all the facts in place. This article totally skirts the fundamental problem of the issue at hand. I am afraid that this article will actually serve NYNEX as a defense of their hard nosed position, which left many collectors, dealers and investors holding the bag.
We at Powell had hoped that NYNEX would honor their contractual agreement with us and other dealers, but just a few day ago, we also received the return of our NYNEX package.
We are looking now at a very serious situation, and I feel that if our industry allows a NYNEX to pull the plug on their cards without fair warning, a very serious precedent will have been established which will leave our hobby with an irreparable damage of credibility.
The fact remains that All NYNEX Change Cards had been sold by them as a replacement for Coins (we are talking about legal tender United States currency). These cards were intended to perform a service to the public, and that service was promised by NYNEX. This service is now no longer available From NYNEX, and therefore these cards have to be refunded.
If NYNEX would have indicated that these cards are just pieces of Landis & Gyr plastic and that the $5.25 value printed on them is just a cute joke, then I can understand why these items can no longer be taken back.
My first question is ? Would you or anybody else have purchased these neat cards and sets from NYNEX if the $5.25 value printed on them was just there for decorative purposes?
Mr. Becker who is in my book the highest authority in Visa Cash Cards, knows quite well how values change when unused cards become expired. He also knows that all Cash Cards have expiration dates printed on them, which is a fair warning to the card holder. NYNEX never did that, and I have yet to see a document from them giving the public and the consumers this very same fair warning about their prepaid optical and magnetic telephone cards.
I have a great deal of respect for Mr. Art Becker, but I firmly believe that on this issue of NYNEX Change Cards, he is absolutely wrong. If he truly believes that fair treatment must be given to the public and the consumers, he will change his mind."
The question that must be resolved is does NYNEX owe refunds to those who purchased the cards. Many dealers believe so. I believe that there is something fundamentally wrong when one of the largest telecommunications companies offers a product with a guarantee, and then changes their mind without offering compensation to those affected.
Some feel that speculators got what was coming to them - That there is inherent risk in speculation, and loss is part of the game. The problem is that dealers should not be confused with speculators. They were simply carrying stock to sell to customers. I’m concerned about the collector market, because what became a guarantee of $5 worth of phone time became nothing. I have to admit I have been collecting NYNEX cards for that reason, even though it was unlikely that I would use the cards. Now I have a collection of plastic with no phone time. That’s precisely the reason I liked NYNEX cards - Most every other card did have an expiration date, NYNEX did not. It’s shaken my faith in the hobby a little, I’m sure it has for others as well. There are those that argue that NYNEX cards will always be worth something, as they are a part of the history of the hobby. It is my personal experience that cards with no phone time left generally sell for less than with phone time on it. The dealers know this, which is a reason why they would want to return cards.
In an effort to add quality and integrity to the industry, GTE has introduced the new Texaco-Child Watch Prepaid Phone Card at Texaco stations across the United States. A picture of a missing child is featured on the front of each card, and 5 percent of the retail value goes to Child Watch of North America, a non-profit organization that provides investigative and financial assistance to parents searching for their missing children.
One in seven missing children is found as a direct result of their picture being disseminated to the public. Thanks to advances in technology and telecommunications, the GTE Prepaid Phone Cards are expected to be an effective new tool for solving these kinds of cases -- thus dubbed the "electronic milk carton".
"We created this prepaid phone card because we wanted to add integrity to an industry where service has sometimes fallen short of expectations," said Gordon Allen, president of GTE Card Services Incorporated. "Our customers know that when they buy one of our cards they are getting the best possible quality at very competitive rates, and helping bring a missing child one step closer to home."
Child Watch Executive Director Don Wood pointed out that since people will be carrying the prepaid phone cards, and using them over and over again, the children's faces will become ingrained in their memories. This will likely make the cards more effective for finding missing children than traditional avenues such as milk cartons and posters.
"We are always looking for new ways to help find missing children, and, considering the growing importance of technology and telecommunications, this type of corporate involvement is a major boost for our efforts," Wood said. "There's no question we'll find children with these cards."
With more than 13,000 Texaco-branded stations across the nation, Texaco Refining and Marketing Inc. (TRMI) and Star Enterprise are major sponsors of Child Watch. "We've worked with Child Watch over the years, and are very happy to be part of a program that pioneers a new approach for finding missing children," said Star Enterprise Vice President of Marketing Joseph W. Bernitt.
"With this partnership between GTE and Texaco, we have the best of both worlds: the power of telecommunications as well as thousands of locations where people frequently travel," added TRMI Vice President of Marketing John Price. "This could be a real lifesaver."
While the phonecard section is currently small, there is a phonecard section! It’s free to place auction, as well as bid, so have some fun.
From: Rod Kasnick, Illinois
From: Lei Zhang, New York
http://www.webpost.net/rjdif/phonecard.htm
http://www.webpost.net/rjdif/phonecard.htm
http://www.dezines.com/netel/freecard.html#Position_To_GO_To
http://www.clubmail.com/phonecard.html
http://www.media-world.com/phonecard/
From: Frank Duzick
Until Next Week,
Alan
2) Direct e-mail. Send a message to: phoneline@cardmall.com
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