Costco Is Cracking Down on Membership Card Sharing—and You Could Be Banned
Updated: Aug. 01, 2023
Costco is verifying membership cards at self-checkout to prevent card sharing. Here's what we know.
Costco shoppers have been talking nonstop about the membership sharing crackdown for the past month. If you haven’t heard the news, here’s the story in a nutshell: In a similar fashion to Netflix’s password sharing crackdown, Costco has been implementing a strict approach when it comes to memberships.
While the news of the original membership card crackdown caused quite the stir, there’s now another twist. Some Costco shoppers are sharing tales of store bans or confiscations of membership cards if caught sharing cards.
With 119 million cardholders, the chain is one of the most popular retailers in the country. Here’s how the membership sharing crackdown, plus the potential store bans or card confiscations, can impact your next trip.
How Is Costco Cracking Down on Membership Card Sharing?
While the warehouse club has consistently asked customers to show membership cards at registers, they have not typically done so at self-checkout. The result? Many non-members use self-checkout with another member’s card. This became a secret—and not-so-secret—hack to avoid paying Costco membership fees while still enjoying Costco’s best deals.
That’s why, recently, shoppers have noticed that the chain is taking steps to fully enforce membership rules at self-checkout. There have been reports of Costco employees asking shoppers at self-checkout to show their membership cards with a photo or a photo ID if the Costco card has no picture.
One user on a r/Costco Reddit thread posted a picture from their local Costco of a sign attached to a Costco self checkout: “Members are required to show their membership card when entering any Costco warehouse and when checking out at a register.” In bold, the chain emphasizes: “Membership cards are not transferable. Only paid members are allowed to shop.”
Costco is cracking down on card sharing
by u/tlduran in Costco
Why the Sudden Change?
In an official statement, Costco says that the move is to stop nonmembers from reaping membership benefits. “We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” the statement says. Costco adds that it’s only able to keep prices low because membership fees offset operational expenses.
What About the Potential Costco Bans?
There is no official Costco rule that you’ll be banned if you use a membership card that isn’t yours. But, TikTokers report that at certain store locations, this seems to be the case. Others report that employees will confiscate Costco membership cards.
TikTok user @profitplug posted a TikTok with over 4 million views about his mom getting banned from her local Costco. “My mom got banned from Costco for using my dad’s membership card to buy groceries,” he says. Angelo goes on to explain that after scanning the card, “employees rushed her and started asking for her ID and membership.” Once the employees determined she wasn’t the owner of the card, they apparently told her she couldn’t return to that Costco location.
https://www.tiktok.com/@profitplug/video/7254731278782598446
In another instance, TikToker @Jordan_The_Stallion8 discusses his experience of having his Costco membership card confiscated. “When people tell you that Costco workers treat their jobs more serious than TSA,” he says, “they’re so serious. I got my membership card confiscated and it was actually me.”
He goes on to recount that a Costco employee did not believe the membership card was his. Despite showing his ID, the employee wanted Jordan to present another form of ID to verify his membership card identity. When he couldn’t, an employee confiscated his card.
@jordan_the_stallion8
Can Costco Really Ban People for Membership Sharing?
If you go to Costco with a membership card that isn’t yours, it doesn’t mean you’ll automatically be banned. However, it is possible that your card could be confiscated. Costco’s website states the following: “[a Costco] membership may be terminated at Costco’s discretion and without cause.” That means, if a Costco employee suspects a card isn’t yours, they may just decide to confiscate it.
Can Costco Members Share Memberships?
If you’re worried about a potential store ban, there are legit ways to share a membership. According to Costco’s website, “anyone with a card can bring up to two guests to the Warehouse during each visit. Keep in mind that purchasing items is exclusive to Costco members,” the website says. If you have a Gold Star membership, two household members can have a card but each card is designated to one member only. In other words, remember to bring the card that has your name on it. And there are still things customers can do at Costco without a membership.
How Do I Get a Costco Membership?
While there has been speculation around Costco raising its membership prices, this has yet to pass. A Gold Star Costco membership costs $60 per year and an Executive membership is $120 with extra perks. Either way, expect to encounter membership verification at self-checkout during Costco trips for the foreseeable future.
