A method and system for using TCAP signaling for improved call setup from a virtual switching point are disclosed. In accordance with the method, TCAP signaling is used to enhance call setup from virtual switching points which receive call request messages from calling parties using a facility on a data network such as the Internet. TCAP signaling is used when necessary to determine the availability of the called party telephone. The system includes a Virtual Switching Point (VSP) in a switched telephone network having a connection to a data network such as the Internet. Call requests are received by the VSP from the data network and processed by the VSP to establish a voice connection between the calling party which initiates the call request and a called party number indicated in the call request message. The use of TCAP signaling from the VSP to Switching Points (SPs) which serve the calling party and/or the called party improves efficiency and minimizes common channel signaling. The VSP enabled with TCAP signaling can also be used as an efficient out-dialer for a call center. The advantage is the ability to offer more calling options while improving network use efficiency.