Abstract: The invention concerns a card activated prepayment and metering systgem for the sale of a utility service. Distributors are sold bulk sevice credits which they then resell in smaller quantities to individual customers. Customers are issued magnetic striped cards upon which information may be stored and from which information may be retrieved. Distributors issue credits on the cards which are later read by a customer's home terminal. Periodically, credit information is dumped from the distributor's terminal to a central computer. Similarly, audit information is periodically read and dumped from a customer's terminal to the central computer. The computer controls each customer's terminal through information broadcast over an FM transmitter, which is received by a receiver in each customer's terminal.