The Blubber

Costco, $COST, is cracking down on membership sharing, per MW.


Costco is currently testing innovative technology that could potentially tackle the issue of membership-sharing, where individuals who haven't paid for an annual membership use cards belonging to paying members. Traditionally, Costco members simply need to present their membership cards to gain access to the shopping club. While memberships are non-transferable, households can obtain one additional membership card. The standard membership costs $60 annually, and the executive membership, featuring benefits such as a 2% cash-back reward, is priced at $120 per year.

In a move aimed at addressing membership sharing, Costco is experimenting with a new approach: shoppers are being requested to scan their membership cards upon entering stores. This initiative follows the introduction of self-checkout registers at the wholesale club, making it easier for individuals engaging in membership sharing to go unnoticed.

According to a statement from a Costco spokesperson to CBS MoneyWatch, "A few Costco locations are scanning Costco membership cards at the entrance. This test is to match members to their cards at the door prior to shopping for an improved member experience."

During the summer, Costco initiated a practice where shoppers were required to present photo identification along with their physical membership cards at self-checkout registers, similar to the procedure in regular checkout lanes attended by staff. The company stated, "We don't feel it's right that non-members receive the same benefits and pricing as our members" when announcing this change.

A shopper, claiming to be at a store in Issaquah, Washington, where Costco's headquarters is located, shared photos of the system in action on Reddit. A sign accompanying the scanner states, "You will be asked to scan your membership card before entering the warehouse," with a store employee overseeing the process.

Costco, with 871 warehouses globally, including 600 in the United States, is exploring these measures to enhance the overall member experience and curb unauthorized access to its facilities.