Mobile phone vouchers: How they work

by Lisa Cardy

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THERE are a multitude of different brands of mobile phone as well as various ways of paying for the calls you make. Vouchers, also known as pay as you talk (PAYT) and pay as you go (PAYG) offer a sensible way of stopping your bills going through the roof, but, as MJDale asked, how do they work

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Unlike the more traditional monthly line rental mobile phone, using a mobile phone with vouchers does not require a credit check as you can only make calls you have already paid for in advance, rather than running up a bill to be settled later.

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First you need a mobile phone, which usually start at around �30. Then, to make calls you need to credit your account. You can do this either by paying with a credit/debit card over the phone, or buying vouchers from newsagents, supermarkets, petrol stations, etc. The vouchers have a scratch-off panel, which reveals a code. Just dial the code into your phone and the amount you paid for the voucher is automatically credited to your account. Every time you make a call, the credit falls. You can check details on the phone's screen.

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This option is popular with teenagers, and, at the moment is the only one available to under 18s. It's also very popular with the teenager's parents for obvious reasons. But it also has its pitfalls.

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You will almost always pay more for the same handset with a voucher deal than with a contract phone. Call charges with this system are usually higher than for the more traditional contracted mobile phones too. Also the full level of network services isn't usually on offer to those paying by voucher. So, you may find you cannot make data calls or take advantage of off peak rate charges.

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If you opt for the mobile phone voucher scheme it may be a good idea to save the spent vouchers and tot up just how much you have spent after a few months. You may find that it would be no more expensive to go for a more traditional contracted mobile phone, which may also come with special offers and off-peak dialling rates.

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So now you know how mobile phone vouchers work, is there anything else you'd like explaining If so, all you need to do is click here and ask away.