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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.

Verizon provided billing services to calls made in Massachusetts, Rhode Island and Maine.

AT&T and MCI offered nationwide collection services, with a cap of per call.

The telephone companies would provide billing services for chat line companies.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.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.

Originally phone sex services consisted of a managed network of dispatchers (live or automated) and erotic performers.