Abstract: Telephone debit cards are automatically vended through a microprocessor controlled vending machine which permits card payment in cash and credit. The customer can select a desired telephone card value and a desired telecommunications carrier. Prepaid and printed cards are dispensed. Optionally, printed receipts are dispensed including an access code and prepaid value. The vending machine generated real-time communications with an electronics funds clearing house for customer validity and funds approval. After electronics transfer of funds to the machine, the telephone debit card is dispensed and funds are electronically transferred to the selected telecommunications carrier via real-time communications with the carrier for electronic transfer of the card value thus permitting immediate use of the telephone card by the customer.