Thursday, October 27, 2011

Redbox Announces New Rental Fee Increases Due To New Debit Card Fee Increase Schemes

Redbox has sent out a new round of informational Emails to their customers, announcing new fee increases in the next few days. While the company cited some cost increases, the Email also cited new debit card fee increases are one reason for the price increases. While all businesses were supposed to experience a lowering of debit card fees to 21-27 cents maximum, many credit card companies came up with new schemes to actually raise debit card fees and increase business costs, now these new debit card fee schemes are resulting in higher consumer prices.

Debit card processors were supposed to lower their prices as a result of a Federal Reserve Board ruling after weighing evidence that merchants were often paying between 44-56 cents a transaction. However, debit card providers quickly looked for new schemes to charge new fees to offset the Federal Reserve Board ruling such as new claimed "security compliance fees" or equipment rental fees, etc.

Redbox box becomes one of the first major retailers to claim that new debit card fee increases are forcing price hikes. Purchases under $15 before October 1, were charged just 6 or 7 cents by banks, however banks and debit card processors are now charging at least 21-24 cents across the board, besides being hit with new fee schemes as well. This is forcing many small "Mom & Pop" type of business to reconsider accepting debit cards at all.

Banks and debit card providers appear to be trigeering the latest round of inflation. Now, even your local DVD is being impacted by these new fee increases.


At 4:49 PM, Blogger Shaun said...

This has been an odd year all around. The government tries to stop a problem, and creates a whole new one. Netflix trips over its own feet and loses 800000 subscribers while increasing its price 60%, and now Redbox succumbs to the new scheme fees from banks and increases 20%. Not to mention peanut butter is through the roof, how will I enjoy my Reese's cups in the future? Now with increases for nightly rentals, after I dropped Netflix, this could put a damper on my home entertainment life. Although nothing can help with the peanut butter, working at DISH I already new a better answer for streaming and movies the netflix or Redbox, but my mind was stuck in the 90's for a while and I needed to let go of the old Blockbuster. I decided to try it out, got 3 month's free to try it out, and I am surprised, the Blockbuster movie pass give DISH customers great option for DVD's and streaming on the computer and television plus 20 movie channels. So no more impulse buys outside my local McDonald's.

At 5:53 AM, Blogger Kimberly said...

I just hate continued increases. Everybody is doing it and they do not understand that our salaries are not increasing. I have just come back from a trip I made to Argentina and they are having the same problems with the Buenos Aires real estate and its taxes increases. It cannot continue like this!


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