What Is a Toll-Free Number? How It Works & How To Get One

Ever wondered why some businesses have a 1-800 phone number? Customer trust is crucial, and a simple, professional contact method can make all the difference. Studies have shown that a toll-free number can increase ad response rates by up to 30%. They’re the gold standard in business communications and offer customers more than just free calls. They convey credibility and accessibility, leveling the playing field against larger brands.

Toll-free numbers allow businesses to answer incoming calls from customers worldwide free of charge, which increases global reach and customer satisfaction.

This guide explains everything you need to know about toll-free numbers. You’ll learn how to get one for your business, what number types are available, which phone systems are best, and get insider tips for reducing your communication costs.

What Is a Toll-Free Number?

A toll-free number is a telephone number that allows people to call a business without being charged for the call. The business that owns the toll-free number covers the charges. In the United States, the most common toll-free number is 1-800, but there are seven toll-free codes in total: 800, 888, 877, 866, 855, 844, and 833. These are commonly used for:

• Customer service hotlines
• Sales inquiries
• Support lines
• Other business purposes for enhanced accessibility

Businesses can also send and receive text messages in addition to voice calls, which is beneficial for customer service interactions, appointment reminders, and marketing campaigns. Toll-free numbers are being incorporated into call centers or contact centers to handle both incoming and outgoing calls.

How Toll-Free Numbers Work

What works in the background when you dial a 1-800 number? An intelligent call routing system. Think of it like a website domain name: You enter an easy-to-remember name, and the system redirects you to a specific server address. A toll-free number works similarly to phone calls.

Here’s the simple explanation:

• A customer dials your number: The caller dials your 800, 888, or other toll-free number.
• The network identifies the call: The phone network recognizes the toll-free area code and immediately checks a central database (called the SMS/800 database) to determine where to route the call.
• The call is forwarded to your “real” number: This database associates your toll-free number with a specific destination number. This could be your office landline, a mobile phone, or a VoIP phone system.
• Your phone rings: The call is immediately connected to your destination line, and your phone rings as usual.

The entire process is instantaneous. The main difference is reverse billing. The cost of the call is billed to your company as the number owner, not to the caller. With this system, you have a national number that can be forwarded anywhere and to any device.

The Benefits of a Toll-Free Number

Using a toll-free business phone number offers many benefits, regardless of your business size or industry. Toll-free numbers increase brand awareness and loyalty as part of a company’s marketing strategy.

The most common benefit, of course, is the immediate credibility it provides. A toll-free number also contributes to a more professional company image. Let’s take a look at some more benefits it brings to the table:

Build instant credibility and trust

A toll-free number conveys professionalism and reliability. An 800 number gives potential customers the impression of an established, trustworthy company, which can be a deciding factor when choosing between competitors. The improved professional image lends your company more credibility, which is crucial for customer trust.

Create a national presence

Toll-free numbers eliminate the geographical restrictions of an area code and enable long-distance calling. A customer in Florida searching for a service online, seeing a phone number with the Wisconsin area code, can assume your business doesn’t serve their area and abandon their search. A toll-free number removes this location restriction, allowing you to offer your products or services to a national audience and appear larger and more reputable.

Increase customer calls and remove cost barriers

The main advantage lies in the name: Your customers can call toll-free. Avoiding potential caller charges, you encourage more people to contact you for sales inquiries or customer support. Improved accessibility translates to higher customer acquisition and satisfaction.

Track your marketing efforts closely

How do you know if your new billboard or radio ad is working? Assigning a dedicated toll-free number to each marketing campaign lets you easily see which campaign generates the most calls. This performance data is great for measuring your return on investment (ROI) and optimizing your marketing spend. For example, a fitness center could use one toll-free number for a print ad and another for a social media campaign to see which number generates more members.

Optimize calls with professional features

Combined with a VoIP phone system, a toll-free number offers you powerful virtual phone features for efficient call management. These include:

• Call forwarding and auto-attendant: Automatically route callers to the right person or department, reducing call wait times.
• Call routing: Route calls to any device — desk phone, mobile phone, or computer — so you never miss an important call.
• SMS and text messaging: Communicate with customers via SMS to send them reminders, promotions, and quick support.
• Voicemail transcription and call recording: Easily review messages and keep records for quality and training purposes.

Keep a permanent and flexible business number

A toll-free number managed through a VoIP system isn’t restricted to a physical location or a phone line. It’s a permanent, mobile number for your business. Whether you relocate, switch to remote work, or expand your team, your phone number remains the same. Toll-free numbers provide your customers consistency and save you the hassle of constantly updating your contact information.

How To Get a Toll-Free Number in 3 Simple Steps

Getting a toll-free number for your business is a straightforward process. Follow these three steps to set up a professional communication channel:

1) Choose a toll-free number provider

First, find a provider authorized to reserve toll-free numbers. These providers are called “RespOrgs” and are certified by the Federal Communications Commission (FCC) to manage and issue toll-free numbers.

Most businesses get their toll-free numbers through a VoIP phone service. Providers like Nextiva not only act as a RespOrg but also bundle the toll-free number with a complete business phone system, giving you access to advanced features right from the start. When comparing providers, pay attention to rates, minute packages, and features to find the best provider for your business needs. Start by getting a free, no-obligation quote.

2) Select a phone number and plan

Once you’ve chosen a provider, you need to choose your business phone number. During the sign-up process, you have the following options:

• Select an area code: Choose from available area codes like 888, 877, 866, or the newer codes 833, 844, and 855. The classic 800 code may be limited in availability, but it’s a premium option.
• Find a vanity number: If you want a memorable number that spells a word (e.g., 1-800-PLUMBER), you can search for its availability.
• Select a plan: Most providers offer tiered plans based on the number of users and included features. Many business phone plans include at least one toll-free number at no additional charge.

Pro tip: If your desired number is already in use, some providers allow you to purchase it from the current owner and then port (transfer) it to your account.

3) Configure your call settings and go live

After securing your number, configure how your incoming calls are handled. An online dashboard from your VoIP provider lets you easily set up call flows without any technical expertise.

Common configurations include:

• Call forwarding: Route these calls to the appropriate department or team member. Nextiva’s IVR system can be set up in minutes without any technical expertise.
• Auto attendant: Greet callers with a professional, automated message.
• Simultaneous ringing: Have calls ring on multiple devices simultaneously (e.g., your landline and cell phone) and never miss a call.

Once you’ve configured your settings, your number is active and can be published on your website, business cards, and marketing materials.

Types of Business Phone Numbers

Three basic types of business phone numbers serve different purposes and can be chosen based on factors like branding, customer accessibility, and marketing strategy.

Having a specific business number, such as a toll-free or vanity number, can enhance customer interaction and credibility, especially for small business owners and startups seeking to improve their marketing efforts.

Local area codes

An area code refers to the first three digits of a North American Numbering Plan (NANP) telephone number that identifies a specific geographic area. For example, in the United States, area codes like 212-555-5555 (New York City) or 310-555-5555 (Los Angeles) are local area codes.

“Area code” is sometimes used interchangeably with “toll-free prefix,” but it’s not the same thing.

Toll-free prefixes

A toll-free prefix is the first three digits of a toll-free telephone number that identifies the type of service or organization using the number.

Standard toll-free numbers are the basic toll-free numbers represented by specific prefixes, such as 800 and 888, among others.

Toll-free numbers encompass several types, each designed for specific purposes. While they all provide the essential benefit of cost-free calls for customers, these prefixes vary based on their designated use. This distinction allows businesses to choose the most suitable option that aligns with their customer service goals and operational needs. Toll-free numbers are assigned on a first-come, first-served basis by Responsible Organizations (RespOrgs).

In the United States, these prefixes are the most common:

• 800
• 833
• 844
• 855
• 866
• 877
• 888

Here’s a detailed toll-free number list:

800 numbers

The most recognized type of toll-free number is the classic 1-800. AT&T introduced the first interstate toll-free service in 1967 as an alternative to operator-assisted collect calls. 800 numbers are often considered premium toll-free numbers and can be less available than other prefixes due to higher demand.

Because it’s so familiar, it’s often associated with credibility and the long-standing establishment of a business. Some brands have even incorporated the 800 prefix into their business names, such as 1-800-FLOWERS.

888 numbers

The Federal Communications Commission introduced the 888 prefix in 1996 as the demand for toll-free telephone numbers grew. The FCC is responsible for regulating toll-free numbers and recognizes all the listed prefixes in this post as valid. 

Established businesses, such as PNC Bank, use 888 toll-free numbers for their brands. The choice to use a 888 number for a traditional business, such as a bank, could be influenced by availability or simply to differentiate its toll-free number from competitors using the more common 800 prefix. 

877 numbers

Two years later, the FCC rolled out the 877 prefix, as more businesses sought toll-free numbers. This number is also often used when 800 numbers are unavailable or when businesses prefer an alternative prefix for their customer service and sales lines.

The Federal Trade Commission’s help line for consumer complaints is a 877 number.

866 numbers

This is another addition to the growing list of toll-free number options. Due to the increasing popularity of toll-free phone numbers, the FCC introduced 866 numbers in 2000.

The U.S. Department of Labor uses an 866 prefix number.

855 numbers

The FCC introduced 855 numbers in 2010, making them a relatively recent addition to the toll-free number family.

Amazon Pharmacy is one business that uses an 855 prefix for its customer service line.

844 numbers

Rolled out in 2013, the FCC introduced 844 numbers to ensure the continued availability of toll-free numbers.

Although Enterprise Rent-A-Car uses an 855 number for car rentals, they have an 844 number for their Emerald Club membership line.

833 numbers

The prefix 833 is the latest addition to the toll-free number series, introduced in 2017. While this one is still not as common as other toll-free number prefixes on this list, it’s just as valid and respected.

Vanity phone numbers

Vanity phone numbers are toll-free numbers that spell out words or phrases on the classic telephone keypad. They were significant before smartphones, when people couldn’t just look up a phone number on a mobile app.

Even now, they’re easy to remember, and companies often use them for branding and marketing purposes. Vanity numbers streamline the customer journey, making it more user-friendly and enhancing branding efforts.

Vanity phone numbers can also be toll-free. Popular examples include the following:

• 1-800 Contacts’ telephone number is 1-800-CONTACTS (or 1-800-266-8228).
• Comcast’s customer support line is 1-800-Xfinity (or 1-800-934-6489).
• FedEx’s phone number is 1-800-GoFedEx (or 1-800-463-3339).

As you can imagine, vanity toll-free numbers are still difficult to obtain, even today. A better alternative to a nationally recognized phone number is a local one, where you opt for a local phone number that is trusted and easily recognized.

Shared use numbers

Shared use numbers are toll-free numbers that are shared by multiple businesses, often in different geographic or service areas. These numbers are typically managed by a service provider or a toll-free service company and are used by companies wanting to minimize costs.

When they’re in use, phone calls from inbound callers are routed to the appropriate business based on criteria such as the caller’s location. Multiple personal injury attorneys, for example, use the vanity number 1-800-HURT-NOW. When someone calls this number, they’ll be connected to the firm closest to their local area.

How VoIP Phone Systems Enable Toll-Free Calling

What’s the connection between toll-free numbers and VoIP phone systems?

Toll-free numbers and Voice over Internet Protocol (VoIP) phone systems are closely connected in modern telecommunications.

VoIP phone systems use the internet to transmit voice calls, converting analog voice signals into digital data packets. This technology allows for more flexible and cost-effective communication solutions compared to traditional phone systems. VoIP providers often offer toll-free numbers as part of their plans, enhancing business communications by creating a professional image and improving customer engagement.

Toll-free numbers can be integrated into VoIP phone systems. When a call is made to a toll-free number, VoIP systems can route the call over the internet to the designated destination, whether it’s a physical office phone, a computer, or a mobile device.

Some VoIP providers offer toll-free numbers as optional add-ons for an extra monthly fee, providing flexibility for businesses as their needs evolve.

It’s possible to have a toll-free number without using a VoIP phone system. These numbers can be managed through traditional telecommunication carriers and systems, rather than being dependent on VoIP technology.

However, a cloud phone system provides businesses cost-effective, reliable, and feature-rich communication solutions that enhance customer engagement and operational efficiency.

Use Cases for Toll-Free Phone Numbers

There are multiple uses for a toll-free number beyond the professional brand benefits. Here are a few of the top use cases for a toll-free phone number:

• Inbound customer service
• Sales and marketing campaign tracking
• Managing a high volume of business calls
• Corporate communications
• Limiting calls to employee extensions

Streamlining customer service

Toll-free numbers facilitate streamlined customer service, particularly when utilizing virtual phone services with VoIP functionality. Incoming callers can take advantage of unlimited calls to your business, and your business can utilize call routing or dedicated vanity numbers to direct callers to a qualified service representative quickly. Understandably, this helps improve the customer experience.

Voicemail transcription is another feature that enhances call management by providing written transcriptions of voicemails, making it easier to keep track of messages and respond promptly.

Example: A home appliance company offers a toll-free number for customers to call for free repair consultations, increasing customer satisfaction due to the ease of getting help. They provide a dedicated support line and a dedicated sales line for tracking calls, nurturing leads, and forecasting pipelines.

Tracking marketing campaign ROI

Marketing often involves testing different campaigns to assess which is most effective. You can attach different toll-free numbers to each marketing campaign, allowing you to track which one attracts the most inbound calls and which callers are most likely to convert.

Example: A fitness center runs ads in two different locations, using separate toll-free numbers for each. By tracking the call volume of each number, it can determine which campaign is more effective.

Handling higher call volumes

As a business grows, it is likely to experience an increase in call volumes. Toll-free numbers paired with VoIP systems often come with features such as call forwarding and auto attendants, helping callers connect quickly with the team they need.

Example: As a catering business grows, its toll-free number manages the increasing volume of calls for bookings and inquiries without needing a significant upgrade in infrastructure.

Managing crisis communications

No brand wants to deal with a crisis, but it’s always best to be prepared in case the unexpected happens. Managing crisis communications is much more effective when you’ve got a toll-free number with VoIP functionality that can handle a skyrocketing number of calls.

During a crisis, managing missed calls is crucial to providing timely information and instructions to customers.

Example: During a product recall, a food manufacturing company uses its toll-free number to handle a surge in customer inquiries, providing timely information and instructions on product returns and replacements.

Protecting employee privacy

Limiting incoming calls to employees’ phone lines is a priority for most businesses. By using a shared phone number caller ID for outgoing calls, companies can protect individual Direct Inward Dial (DID) numbers, ensuring that direct lines remain undisclosed.

Enterprise-grade VoIP systems let all employees place calls using a unified caller ID. This not only maintains privacy but also presents a consistent and professional image to clients and customers.

Example: A consulting firm uses a shared toll-free number for all outgoing client communications. This approach ensures that employees’ personal numbers remain private while maintaining a unified brand experience. It also simplifies the process of managing and tracking outgoing calls, enhancing operational efficiency. And when calls need to be connected, authorized parties can dial their phone extension.

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How Much Does a Toll-Free Number Cost

Knowing the costs associated with a toll-free number helps you avoid surprising charges later. While pricing varies between providers, here’s what you can expect when budgeting for a toll-free business number:

1. Setup fees

Some providers charge a one-time setup fee, which is more common when obtaining a vanity toll-free number. This fee can range from $20 up to $500 or more for vanity options. Check the provider’s pricing page for details on any onboarding, welcome, or setup fees for details about these costs.

2. Monthly charges

Most toll-free numbers come with a monthly service fee. For standard business VoIP plans, the monthly cost is typically $30 per line. However, Nextiva includes a complimentary toll-free number with its business phone service (not included in the base plan) at just $25/user/month, while others may charge extra for each additional toll-free line.

3. Minute bundles and usage costs

Many business phone plans include a set number of toll-free minutes each month (for example, 100, 1,000, or even 10,000 minutes). If you exceed your plan’s included minutes, you’ll generally pay a per-minute rate for inbound calls. These rates are often a few cents per minute and can add up if your business receives a high call volume. Refer to the pricing page to determine the included minutes for each plan.

4. Text messaging and international calls

If you plan to use international toll-free numbers for texting or international calls, check for separate rates. Some providers offer free domestic texting but charge for international messaging or calls outside the U.S. and Canada. You may need to pay a nominal fee to register your phone number with The Campaign Registry (TCR) for reliable text message delivery.

5. Free trials and included numbers

Some providers offer a free trial period or include a toll-free number with your business phone system plan, allowing you to test the service before committing. However, it’s not common to need to try a toll-free number. These can be adjusted by the phone system provider as needed. You should ask about porting fees and timelines to transfer your existing phone number.

A Toll-Free Number Is Your Gateway to Growth

Numbers with toll-free area codes are incredibly important to businesses of all sizes. They lend more credibility than a local number, which can be an essential part of scaling your business. A toll-free number practically screams “established, responsible organization.”

How To Get a Toll-Free Number From Nextiva

Nextiva includes a toll-free number with its business phone service, along with many advanced features such as call recording, conference calling, and texting. We also support local numbers, providing plenty of flexibility based on your business’s needs.

Choose a trusted phone system service provider that offers toll-free numbers. To obtain a toll-free number, you must get it from a Responsible Organization (RespOrg) authorized by the Federal Communications Commission (FCC).

Nextiva offers unlimited calling in the United States, Canada, and Puerto Rico, including long-distance calls, and provides competitive pricing for international calls.

Stand out with a dedicated toll-free number. It's free.

All business voice plans include a toll-free number. Get top-rated phone features from the leader in business VoIP.

Get started

Toll-Free Number FAQs