Payphones: the New Money Grab

Remember when payphones were the only option to contact someone when you weren't at home?

With the extensive mobile network we all enjoy, the payphone seems like an antique of the past.

But sometimes they're needed, and for one user, who made a one-minute call to a family member from an airport-based payphone, the cost appearing on his credit card bill was a shocking $11.49.

Would it cost that much to have made the call on a mobile phone? And why would almost $12 a minute be acceptable?

What are the real costs are for payphone calls - and does there need to be clarification of the rates to users?
Payphones are primarily operated by the main telecommunications companies in Canada - Telus, Bell Canada and SaskTel and the average price for a local call is 50 cents. Recently Bell Canada applied to the CRTC to raise the rates 100 per cent to one loonie per call.

But where it gets complicated is with long distance calls via payphones. If you don't have a calling card from a telecommunications company to charge the call to your home phone account, the other option is to use a credit card.

According to WiMacTel, a Calgary-based company providing operator services for payphones, hospitals and hotels, there are many necessary costs that users don't know about, such as payment, billing, collection, credit card processing fees and bad debt write-offs.

And the company says it's not possible to list all the rates on the phone terminals as there's not enough room. Users can access rates when dialing, yet there have been 12 complaints to the Calgary office of the Better Business Bureau in regards to WiMacTel's rates.

Our tip? Avoid the payphone unless you have coins or a calling card - and with a mobile, there are other options such as messenger or text to contact someone.