Saturday, September 25, 2021

REDBOX LIKELY TO INCREASE ITS PRICES, TOO

September 22, 2011 by · Leave a Comment 

Redbox is preparing to up its rental charge by about 25 percent if credit-card companies proceed with plans to increase the fees they charge retailers for debit card transactions less than $10. Home Media magazine reported that Redbox, which currently pays about 5 cents per debit card transaction, would be required to pay about 22 cents per transaction if the increases go into effect. In a note to clients on Wednesday, Eric Wold, research director with Merriman Securities of San Francisco, wrote that Redbox’s 25-cent increase would go into effect for both credit- and debit-card transactions. “[It] could actually drive a margin boost to Redbox since the price increase would benefit all transactions,” he said.