Toll-free numbers are telephone numbers distinguished by a three-digit prefix (e.g., 800 and 885), where the recipient covers the cost of the call rather than the caller. Many businesses opt for toll-free numbers for their credibility and convenience, especially since prospective customers can reach your team without worrying about call charges. This guide will explore what a toll-free number is, how it operates, its benefits, and the top providers.
How Does a Toll-free Number Work?
The advantage of a toll-free number is that it allows anyone to easily contact your business. Not charging for the call is a great way to demonstrate to customers that you are a reputable business that values their time and resources.
To better understand what a toll-free number is, here’s a step-by-step breakdown of how toll-free number calls are processed:
- A customer calls your toll-free number.
- The caller’s local telephone company (landline or voice-over-internet-protocol (VoIP) provider) receives the call and checks the 800 database to identify the routing information of the business responsible for the cost of the call.
- The local telephone company routes the call to the appropriate long-distance telephone company, which routes the call to the business’ local telephone company.
- The business’ local telephone company routes the call to the business.
- The business connects with the customer.
While this process seems lengthy, in most cases, the whole series of steps can be completed in under three seconds. Toll-free numbers are free of charge for the caller, even when calling long distance within the same country. Charges apply if you call a toll-free number internationally. You are not charged when receiving an international call.
In addition to calling businesses, customers can also send text messages to toll-free numbers (as long as those numbers are “text enabled”) and businesses can send texts in response. It’s important to note that toll-free digits may have similar free codes but are not interchangeable. Dialing 1-800 and 1-888 would connect you to different recipients. Calls to each toll-free number are routed to a particular local telephone number.
How Are Toll-free Numbers Assigned?
Now that we know what a toll-free number is and how it works, it’s now time to focus on how to get an 800 number. Entities referred to as “Responsible Organizations” or “RespOrgs” assign toll-free numbers on a first-come, first-served basis. RespOrgs has access to a toll-free database that contains information about the status of all toll-free numbers with a toll-free prefix—800, 888, 877, 866, 855, 844, or 833.
The FCC sets rules related to getting and using toll-free numbers, and all toll-free numbers must be portable. This means subscribers can move their number to a new RespOrg if they switch providers.The FCC also allows those switching service providers and remaining in the same geographic area to keep their existing local phone numbers. To learn more about phone numbers and how toll-free and local numbers differ, read our toll-free vs local number guide.
How to Get & Set Up a Toll-free Service
Setting up a toll-free number is relatively simple. Start by choosing your desired number, ideally two or three options. While the 800 prefix is commonly chosen due to its popularity and recognition, many of these numbers are already in use.
Once you’ve chosen your desired number, you’ll need to purchase it from a RespOrg, an organization authorized by the FCC. Most mobile, landline, and VoIP service providers are RespOrgs authorized to index numbers in the toll-free database and assign them to businesses. Your RespOrg will process the request, and once the number is assigned to you, you can begin using your toll-free telephone number.
VoIP providers like Grasshopper make the process very simple. The platform lets you port your number or choose a business phone number, either a vanity, toll-free, or local number. Grasshopper has a vast catalog of numbers, and you can key in your desired location to narrow down the choices. After selecting a number, simply select a plan, download the app, and begin calling and texting right away.
Choose a toll-free number and start using your business telephone number right away. (Source: Grasshopper)
Benefits & Disadvantages of Using a Toll-free Number
In today’s business landscape, toll-free numbers have become a staple, enhancing companies’ customer accessibility and brand recognition. However, despite its widespread use and popularity, some disadvantages include ongoing costs and limitations in availability or geographic coverage.
Understanding both benefits and drawbacks enables businesses to make informed decisions about whether toll-free numbers align with their communication strategy.
| PROS | CONS |
|---|---|
| Greater availability to clients at a national scale | Potential cost accumulation during peak seasons |
| Credible, professional image to your customers | Potential for spam or non-serious calls and inquiries |
| Allows you to provide prompt customer assistance | Non-local numbers may feel less personal or lack emotion |
| Toll-free vanity numbers support customer recall | Outbound calls from toll-free numbers may be dismissed as telemarketing |
| Separates your personal and business communications | Utilizing toll-free numbers may require investment in complementary features (call forwarding and analytics) |
It may be surprising, but something as simple as making your phone number toll-free can go a long way to improving your business credibility and operations. Below are some of the biggest benefits of toll-free telephone numbers for small businesses:
- Improves brand recognition: Select a phone number related to your brand, like 1-800-MUSCLE, for fitness centers or weight-building companies. Creating a toll-free number that includes your business name, product, or service helps customers easily remember you.
- Increases call volumes and sales inquiries: Offering a toll-free contact channel support line encourages more customers to engage your business. This has the potential to increase your call volume and sales inquiries about products and services, giving you more opportunities to close sales.
- Free to call for customers and prospects: People appreciate toll-free phone numbers because they can contact you without worrying about charges. Removing the financial barriers to contact you encourages them to call you and sort out their concerns.
- Enhances customer service: By making it easier for customers to reach you without incurring charges, you enhance client loyalty, experience, and overall satisfaction.
- Adds a marketing tool to your communication suite: Toll-free telephone numbers with analytics and call tracking make it easy to track marketing campaigns. The numbers can also be part of your branding strategy, like using catchy or brand-specific toll-free numbers for advertising campaigns to enhance brand recognition and recall value.
- Nationwide availability: Toll-free numbers enable a company to cater to audiences at a national scale. By removing call charges, your team expands its reach beyond its local area.
While phone numbers where call charges are shouldered by the business receiving the call offer several benefits, such as those listed above, there are some drawbacks that small business owners should know about:
- Additional expense: While toll-free numbers can increase your call volume and sales inquiries, they also bring additional business expenses that can potentially accumulate, especially during peak seasons. Invest in proper lead generation and sales conversation training to ensure you get a return on investment on your communication costs. Review the customer journey and make it as seamless and stress-free as possible.
- Better for nonlocal businesses: Local numbers appear more trustworthy, and local audiences are more inclined to support businesses rooted within the community. Toll-free numbers may have the opposite effect because of their non-local area codes, leading to mistrust and unanswered calls.
- Potentially being flagged as spam: Individuals might set their phones to automatically classify unknown callers as spam, leading to unanswered calls for those using toll-free numbers.
Tips for Choosing Your Toll-free Number
Armed with an understanding of what a toll-free number is, we can now delve into choosing your phone number. Developing your communication strategy, including your toll-free hotline, is crucial for business growth. When selecting your number, consider these tips to ensure that you’re making your number work for you. Following our suggestions, ensure you get a phone number that strengthens your customer support, operations, and brand presence.
- Select a memorable number: Choose a phone number that’s easy to remember and makes sense for your company. Consider choosing a vanity toll-free number that matches your business. Also, avoid market confusion by selecting vague words or phrases similar to those of other businesses. For example, don’t choose 1-800-GOT-INK if you sell tables and chairs.
- Review numeric combinations: Pay attention to the combination and flow of digits. Avoid numbers with repetitive or sequential digits, such as 888-777-6666 or 800-123-4567. Instead, choose patterns or combinations that are easy to remember.
- Plan for scale and growth: What are your growth projections? When selecting your toll-free number provider, consider your anticipated call volume and scalability requirements. The best platforms offer scalable communication solutions that can grow with your business.
- Get a 1-800 number, if possible: The best and most recognized toll-free number is 1-800. While many of these have already been assigned, if an 800 number is available and relates to your business or industry, go for it. While other prefixes have gained popularity, not all consumers connect other codes like 888 and 866 as toll-free.
Uses of a Toll-free Number
Toll-free telephone numbers are used by companies across different industries, particularly by startups, home-based and commerce businesses, and enterprises with large-scale operations. Startups and small businesses use toll-free numbers to establish their identity within the market effectively, while larger companies use them to accommodate a large customer base located in different areas.
To gain a better understanding of what a toll-free number is and how businesses use them, check out this summary below:
Industry | Use Case & Examples |
|---|---|
Ecommerce & Retail | Customer service—provides clients with uninterrupted telecommunications to retain customer loyalty and drive future sales |
Hospitality | Orders and booking—integrates with call management features like interactive voice response (IVR) and call recording, enabling customers to easily book an event, room, or meal |
Healthcare | Instant care—accepts free-of-charge inbound calls and routes patients to specialists, based on concerns |
VoIP Features to Complement Toll-free Numbers
As we discuss what a toll-free phone number is, it’s important to look beyond this feature and consider other complementary business phone features that can improve your communication stack. At the base level, toll-free numbers provide customers with free calls to recipients from wherever they’re located. However, to maximize the potential of toll-free digits, integrate this tool with other business phone system features like the following:
- Call recording: This feature means operators don’t need to stress about tracking all the call details and can focus on responding to the problem at hand. Recordings can also be used for training new personnel or for feedback regarding agent performance.
- Real-time analytics: Call and contact center analytics track important metrics like call length, peak hours, and wait times. Such information is useful for adjusting marketing strategies to better serve your client base. Analytics results identify your toll-free number’s high-demand hours, allowing you to effectively distribute your resources to maximize agent productivity.
- Interactive voice response (IVR): IVRs automate interaction with callers through voice and touch-tone keypad inputs. By linking your IVR with a toll-free number, you increase your capacity to handle large call volumes simultaneously while reducing the need for human operators.
- Extension numbers: Phone extensions improve call and contact center operations by allowing customers to connect with specific departments and agents within your organization. Pairing toll-free digits with extensions also makes transferring calls within a phone system easier.
- Voicemail: This feature allows callers to leave you an electronic audio message that you can listen to later. Toll-free numbers with voicemail enable customers to leave more personalized and expressive messages if their desired department or point of contact is unavailable.
- Call forwarding: This feature allows you to redirect incoming calls to a different number. Toll-free call forwarding enables businesses to activate their toll-free numbers abroad and route incoming calls to another device.
Top VoIP Providers With Toll-free Telephone Numbers
Each toll-free number service comes with different packages. When choosing a service, assess your business needs and choose a provider offering relevant features. In addition to knowing what a toll-free phone number is, you must also know how to choose a provider. When selecting a platform, consider the overall value, customer support channels, scalability, and ease of use. Check out our list of leading VoIP providers with toll-free phone number services.
VoIP Service Provider | Monthly Starting Price (per User) | Key Features | Learn More |
|---|---|---|---|
 | $18 (Flat rate) |
| |
 | $19.95 |
| |
 | $20 |
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 | $30 |
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 | $30.95 |
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Frequently Asked Questions (FAQs)
Vanity number vs toll-free number: what’s the difference?
Toll-free numbers are virtual numbers dialed by callers without incurring any charges. On the other hand, vanity numbers, which can be toll-free numbers, are customizable numbers that can spell out memorable words or phrases for easy audience recall. Toll-free phone numbers confer credibility on your business, while vanity numbers are better for branding. To learn more about different types of virtual numbers and their benefits, check out our in-depth virtual number guide.
Can toll-free numbers send & receive text messages?
Yes, although not all toll-free numbers offer this messaging feature. Whether you can send and receive messages using your toll-free number depends on the services provided by your chosen provider. For instance, companies like Grasshopper and RingCentral offer 1-800 numbers supporting both calls and texts.
How many toll-free numbers can I have?
There is no legal limit on the number of phone numbers an individual or organization can have. While service providers typically include a set number of phone numbers in their packages, additional numbers can usually be purchased for approximately $5 to $10 per number, per month.
Bottom Line
In our journey to better understand what a toll-free number is and how it works, you discovered that this phone number is free of charge for the person placing the call. Toll-free numbers are a great way to encourage clients to interact with your business. Whether you’re an established business or a small startup looking for an effective way to improve your audience engagement, toll-free numbers can help boost your brand positioning, customer loyalty, and support services.
