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The incentives for providers were then reversed; rather than earning money from keeping the customer on the line (orgasm delayed), they earned more from bringing the caller to orgasm quickly, so as to move on rapidly to another call.Unused minutes were rarely usable on a second call.

With the progress of technology it became more practical, convenient, and economical for providers to work out of their homes.

Human dispatchers — female, except for gay male phone sex — answered the advertised phone numbers, processed payment via credit card, chose who of the available performers in the dispatcher's judgment best matched the clients' fantasy (grandma, black girl, college girl, etc.), and connected the client with the provider. Either could hang up, though some services put economic pressure on providers not to do so.

Once means of transmitting payment were developed, phone sex turned into primarily a commercial activity, with customers (overwhelmingly male) and sellers (overwhelmingly female).

Due to the potential for emotional intimacy between those who have engaged in phone sex, it is a matter of some debate whether phone sex is to be considered infidelity when involving a person outside of a committed personal relationship.

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.By the end of the 1980s, nearly all of the major local phone companies in the United States, plus the major long distance carriers, were actively involved in the adult chat line business.The telephone companies would provide billing services for chat line companies.The provider provided (say) 10 minutes of service, but got to keep all of the money (say 20 minutes).When the Internet got relatively mature, sale of any sexual service not involving a minor could be made to anyone not a minor.If a customer disputed a charge, the telephone company would usually “forgive” the charge but block the caller from calling any other chat lines.

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