Redbox raises price ( becuase of other things debit card fees)

[imagine]

Opened my e-mail this am to this

"New Daily DVD Rental Price

Redbox is making an announcement about its prices today, and we want to make sure that you hear it from us first.

Starting on Monday, October 31, the daily rental charge for DVDs will change to $1.20 a day.* The price change is due to rising operating expenses, including new increases in debit card fees. Daily rental charges for Blu-ray™ Discs and video games won't change.** Additional-day charges for DVDs rented before 10/31 won't be affected, either.

In order to make the transition easier, Redbox will discount the first day of all online DVD rentals to $1.00 from 10/31 through 11/30. Additional rental days will be $1.20.*** "

http://www.redbox.com/pricechange?om_rid=Nsfnmp&cid=EM%3A_BOqbzyB8d$CUnr

I thought the new caps rule on debit card transaction fees was suppose to help reduce merchants cost and thus be able to pass on the savings to us the consumer. That is how the change was being sold.

[mystypooh]

I'm not the least bit surprised. I was kinda expecting this. Was hoping it wouldn't happen but eventually I think it was bound to happen.

[imagine]

I'm not the least bit surprised. I was kinda expecting this. Was hoping it wouldn't happen but eventually I think it was bound to happen.

I can see and increase in prices everything is going up but to lay at least partial blame on the debit fee cap rule that decreased debit fees merchants pay seems strange. They should be paying less now saving them money which the merchants lobbyist for the bill said they were sure merchants would pass on the consumers.

Some on the net are calling the reason given as debit card fee increases a flat out lie by redbox.

So are they lying or is their more to the story? Who knows?

[brennasmom]

Got this email yesterday... it's still a good deal

[FrugalKate]

You can thank the Obama Credit Card Reform passed in 2009 to reduce the high interest charges on high risk credit card holders to the same rate as responsible credit card holders. The banks and credit card companies just pass the risks and charges on to the merchants who in turn pass them onto us instead of the people that should not have credit cards at all because of their total irresponsible behavior patterns.

[sinopa27]

i believe they would increase regardless of the supposed increase in debit card fees. Netflix went up and redbox got a lot of customers because of this. So.....why not go up 20 cents????? Like someone already posted, it is still a good deal.

[bunnys]

I think the Obama credit card reform bill was to protect vulnerable credit card users from flat-out usury and exploitation by credit card companies.

I worked for one of the big credit card companies famous for exploiting the "underserved" market. They'd routinely offer credit cards to people who had just declared bankruptcy becasue they knew the customer couldn't write off any more debt for at least 7 years. They also solicited credit cards to people who were in prison.

Then, they'd set up kiosks at events (Nascar races and WWF events) where they thought the average potential customer would be too stupid to know what they were getting into. They'd offer credit cards with the customer's (er, victims) favorite wrestler on the front to lure people with poor credit into a card with a $100. credit line and charge them a $39. application fee and a $25. expedited processing fee (optional, of course but the default charge if the applicant didn't specifically refuse it at the time of application.) A week later, the customer would get his new card and just by going out and charging a tank of gas would be suddenly over the limit and then would be charged another $39 over the credit line fee.

Then, the customer would try and make another charge and be rejected because they had already exceeded their credit line. So they'd toss the card in a drawer then forget about it. When the bill came, they'd see all the charges for one tank of gas and refuse to pay anything but the gas. Several months would go and suddenly our collections department would be telling them to pay up by getting a cash advance on another card and paying off this mess.

The people at the event kiosks would openly LIE to prospective customers as well to get them to apply. I know they'd do this because one customer after another would call me and complain that they'd been told something completely false. I got the same story over and over again. I know they weren't making this stuff up.

Yes, reform so that people were no longer exploited by credit card companies needed to happen.

The credit card companies needed to be checked. Seriously, why does someone who's in prison need a credit card with a $100 credit limit anyway?

I've never used Red Box. But it always seemed to be a good deal to me. I agree with the earlier poster, I think the $1.20 rate is still reasonable. However, they shouldn't try and spin the higher rate as a cost of doing business that they're trying to make up for debit card fees banks are raising on their customers. Most people aren't so stupid that they can't see through that twisted logic. Just say "inflation" and end it.

[Nishu]

I can see and increase in prices everything is going up but to lay at least partial blame on the debit fee cap rule that decreased debit fees merchants pay seems strange. They should be paying less now saving them money which the merchants lobbyist for the bill said they were sure merchants would pass on the consumers.

Some on the net are calling the reason given as debit card fee increases a flat out lie by redbox.

So are they lying or is their more to the story? Who knows?

Yup, I'm calling BS. It doesn't surprise me that their prices are going up... costs are going up everywhere, but I don't believe this is about debit card fees.

[imagine]

Yup, I'm calling BS. It doesn't surprise me that their prices are going up... costs are going up everywhere, but I don't believe this is about debit card fees.

yeah BS and they are being called out on it all around. The first quotes in the papers actually name the Durbin amendment by name as the credit card fees. Later quotes where missing that and just naming debit card fees.

I think it is other cost that are increasing for them that they prefer not to name for fear of alienating a needed business contact.

reports before the announcement were taking about Disney and other production companies changing prices and times that Redbox could start putting their movies in the boxes. Some are as late as 28 days after they are released for sale.

[cheles2kids]

Not sure if anybody has noticed but if you 'reserve' your movies ahead of time through their website, the price is still $1.00 per rental.

Now...how long that will last, I can't say but for now they are still $1.00, if you go directly to the kiosks they do charge you the increased rate of $1.20 per rental.

So that makes me wonder if it does indeed have something to do with the connection of their machines with the debit card system?

Either way...it's still much cheaper than what we were paying for Netflix every month.

[imagine]

Not sure if anybody has noticed but if you 'reserve' your movies ahead of time through their website, the price is still $1.00 per rental.

Now...how long that will last, I can't say but for now they are still $1.00, if you go directly to the kiosks they do charge you the increased rate of $1.20 per rental.

So that makes me wonder if it does indeed have something to do with the connection of their machines with the debit card system?

Either way...it's still much cheaper than what we were paying for Netflix every month.

I think it was said the $1 if you reserve as through Nov. they have been trying to get people to reserve online for a while they were for a time giving free rentals if you reserved on line

I have not tried it but I think you still have to wipe your card at the redbox even if you reserved online. Someone correct me if I am wrong

[imagine]

Not sure if anybody has noticed but if you 'reserve' your movies ahead of time through their website, the price is still $1.00 per rental.

Now...how long that will last, I can't say but for now they are still $1.00, if you go directly to the kiosks they do charge you the increased rate of $1.20 per rental.

So that makes me wonder if it does indeed have something to do with the connection of their machines with the debit card system?

Either way...it's still much cheaper than what we were paying for Netflix every month.

I think it was said the $1 if you reserve as through Nov. they have been trying to get people to reserve online for a while they were for a time giving free rentals if you reserved on line

[cheles2kids]

I think it was said the $1 if you reserve as through Nov. they have been trying to get people to reserve online for a while they were for a time giving free rentals if you reserved on line

I have not tried it but I think you still have to wipe your card at the redbox even if you reserved online. Someone correct me if I am wrong

You are exactly right about having to swipe the card at the kiosk.

We do about 50/50 with renting directly from the kiosk & reserving online...to me it's soo much easier doing it online because you are guaranteed to get the movie you are looking for or at the very least knowing in advance if there is a copy left to reserve...lol

[shoiji]

Still think $1.20 is awfully cheap to rent a movie considering how much it would cost to watch a movie at a theater.