Costco Implementing Major Crackdown on Membership Card Sharing

All right, it’s time to get serious. Costco, that bastion of bulk buying and the American way, has decided to lay down the law. If you’ve ever borrowed a membership card from a family member or friend to access the store, you may be interested in hearing that Costco is issuing a crackdown. Costco is now implementing automatic card scanning at store entrances to prevent membership sharing. It has reportedly already started in some place but will roll out across the U.S. in the coming months.

In upcoming months, scanning devices will be deployed across all Costco warehouses. This move ensures that the only people enjoying the benefits of membership are those who pay for it. Customers are now required to show a photo ID along with their membership card.

Customer Benefits Through Membership

One of the most compelling reasons people join Costco is the member-exclusive pricing and benefits. Everything from gas to groceries, and even electronics, comes at a discounted rate for members. But let’s not pretend the exclusivity came easily. Members pay for these perks through annual fees.

Efficiency and Reduced Crowds

Costco CEO Ron Vachris said back in May that its crackdown measures have already improved store efficiency and shortened checkout times. He said having the verification process handled at the entrances speeds up registers. Plus, he expressed a belief that fewer unauthorized shoppers would also lead to fewer crowded parking lots. Complaints about jam-packed Costco parking have been prevalent on Reddit, and it seems this membership crackdown is the first step in addressing these concerns.

Going Forward

Despite the high revenue Costco generates—reporting $4.6 billion last year from membership fees alone—the company plans to increase its membership fees by $5 annually starting in September. A considerable portion of Costco’s profits come from membership fees, which saw an 8% increase from 2022.

Meanwhile, guests must be accompanied by a valid cardholder to enter Costco stores. That means no more sneaking in using Aunt Linda’s membership card. This policy extends to using self-checkout machines as well–a membership card and photo ID will now be required.