When you would fund the pay phone with the appropriate coinage, there was a sort of escrow relay that would hold the coin until it was verified you had connected and completed a call.
If the line connected and you made a call, then when the phone hung back on the receiver, it would signify the end of the call and the coin would drop into the coin box.
If the call wasn’t completed, it would return the coin to the refund chute.
The coin goes into a sort of “escrow” holding. That is it doesn’t fall all the way into the bank, in case the call isn’t completed. Instead it’s held in this escrow feature until after the call, when the coin is dropped into the bank. If a call doesn’t complete, the coin falls into a different mechanism for the coin return.
When you put in coins they are not automaticalyl dropped to the main hold, because you haven’t used them up. When make a call they gradually drop one by one as you use them up.
When you put down the phone, the coin currently in use is “lost” (you pay for each period started and lose the rest even if you don’t use it up.) The coins not used are given back
Other people have mentioned how you could fool a US payphone into thinking the call was not completed.
Here in the UK for a period there was a much more mechanical way than using tones. Way back in the 1990s, you could take a metal kebab stick and put it in the coin return slot and push up. We used to ring competition lines and use the same pound over and over again.
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