Costco knows you’re using your friend’s membership card. To save you the embarrassment of telling you off when you’re in the checkout line, now Costco will try to catch membership moochers before they even get in the door.
The retailer is implementing stricter policies and cracking down on non-members using other people’s cards by requiring shoppers to scan their membership cards to enter stores.
“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse,” Costco said in a statement online. “Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner.”
Customers walk by the membership counter at a Costco store on July 11, 2024 in Richmond, California.
For members with cards that don’t have a photo, Costco says to come prepared with a valid photo ID but encourages shoppers to visit the membership counter and have their photo taken.
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Costco’s new rule also requires guests to be accompanied by a valid cardholder to enter its stores, making it more difficult for non-members to sneak in using cards that don’t belong to them.
Costco did not immediately respond to a request for comment.
The move comes as an extension of the system Costco tested out at some stores earlier this year, which required members to scan their cards at machines placed near the store entrance – instead of just flashing a card to employees.
Self-checkout machines were also affected by Costco’s crackdown. Last year, the company began requiring shoppers to present their membership card and a photo ID to use the registers.
“We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” Costco said in a statement last year.
Costco’s crackdown on non-members comes after the company announced last month that it was raising its membership fees by $5 to $65 in the U.S. and Canada – the first time since 2017. The change goes into effect on Sept. 1.
The bulk of Costco’s profits come from annual fees. It reported last year that it earned $4.6 billion in revenue from membership fees, an 8% increase from 2022.
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These price increases have caused consumers to find more ways to save money. Discount stores were the hottest segment of the retail sector in 2023 and spending at discount retailers grew by 26%, according to Deloitte research. In contrast, spending at department stores fell by nearly 20%.
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