Katheryn I don't know how old your daughter is... but assuming she is a young teenager...
I would use both of those options. I'd tell her that those phone calls were unacceptable because they were too expensive and she knows when they can be phoned for free, so I'd make her pay for those calls (if possible) ... and then I'd tell her that if it happened again not only would she have to pay the bill again but that you'd block his number permanently on your house phone. Maybe that will help, idk.