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Nevertheless, phone sex should not be confused with prostitution wherein money is exchanged for real life sexual services or physical interaction.
The editor of High Society magazine, Gloria Leonard, is credited with being one of the first people to use "976 numbers", then "900 numbers" for promotional purposes and soon as a revenue stream in the adult industry.
The vast majority of modern services in the United States use toll-free numbers whereby clients can dial up to request a call with a particular performer using credit cards, Automated Clearing House systems, and a variety of other billing methods.
There are still some services that rely upon premium-rate telephone numbers (e.g., 976 and 900 numbers) for billing purposes, although this practice has been largely abandoned due to the high rate of fraud associated with these lines and the inability to dial 900 and 976 lines from cellular phones.
Leonard convinced magazine owner Carl Ruderman to purchase more of these numbers and the business began to be successful using the magazine to promote the service.
Leonard herself was surprised at the success of these numbers.
(This attitude still survives among some providers.) When public (mostly female) pressure forced the phone companies to stop providing this service to sex workers, a transition was made to a manual method: pre-paid blocks of time, 10, 30, 60 minutes, whatever the customer would pay for.Leonard recorded her own voice informing callers of the contents of the next issue of High Society magazine before its publication.Later she recorded others such as Annie Sprinkle "talking sexy".Typically the telephone companies would bill callers to chat lines and then remit 45% of the money collected to chat line operators.The telephone companies placed the chat line charges on a customer's local phone bill.