How do prepaid phone cards work?

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How do prepaid phone cards work?
You buy a card which grants you access to the calling network for a set period of time, say 50 minutes. These usually expire after a period of time, say 30 days after first use.





The calling card company buys the minutes of access in a block from the ILEC or long distance company that owns the network. The calling card company makes its money on the breakage (expired minutes of use) and on a mark-up per minute, usually 1 or 2 pennies a minute.
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Reply:You key in a number that comes with the card. then key in the phone number you want to call. The minutes are tied to that number and will be deducted each time you use it until they are all gone.