A system and method provide prepaid telecommunication services using credit or debit cards in a telecommunication network including a central data base. The system monitors card balances while blocking multiple use of card balances and sends warning messages to subscribers on card balances which approach a threshold amount. Upon initiation of a telephone call, a subscriber card balance corresponding to the subscriber's credit or debit account is retrieved from the central data base. Status flags are set in the central database indicating that a telephone call is in progress for that account. A switching station monitors the telephone call and initiates an alarm when the call time approaches a threshold amount specified for the card balance. The system announce to the subscriber and/or blocks the termination of the call when the threshold amount has been exceeded and a further limit specified for the card balance has been reached. The card balance in the central data base and the status flags are changed upon completion or termination of the call.