Costco Is Cracking Down on Membership Card Sharing: Here’s What’s Changing

Costco enforces stricter protocol to prevent customers from sharing their membership cards with non-members.

After first cracking down on membership card sharing with a photo verification system in 2023, the retailer will soon have devices at its store entrances that will scan every membership card.

“Over the coming months, membership scanning devices will be used at the front door of your local warehouse. Once set up, before entering, all members must scan their physical or digital membership card by placing a barcode or QR code on the scanner,” Costco said in a statement shared on its website.

The statement added, “Guests must also be accompanied by a valid member to enter,” referring to their guest policy that allows members to bring up to two guests with them (only members can purchase items).

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In June 2023, Costco began implementing its initial photo verification system at self-checkout kiosks after noticing “non-member customers using membership cards that don’t belong to them,” the company wrote in a statement shared with PEOPLE on Time.

“Costco is able to keep our prices as low as possible because our membership fees help offset our operating costs, which is why membership fees and structure are important to us,” the company added in a statement.

They also emphasized that “membership cards are not transferable” and that “we don’t think it’s right for non-members to have the same benefits and prices as our members.”

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Costco food court.

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In 2020, efforts were also made to discourage card sharing when Costco announced that non-members would no longer be able to dine at their famous budget restaurant where you can get a hot dog meal for $1.50.

At the time, the warehouse chain posted signs at its locations across the U.S. that said, “Beginning March 16, 2020, an active Costco membership card will be required to purchase items at our restaurant. You can join today. See our member counter for details.”

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Costco offers memberships starting at $60 per year and operates 606 warehouses in the United States as of June 2024.

Categories: Trends
Source: HIS Education