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 triggering the latest round of inflation. Now, even your local DVD is being impacted by these new fee increases.