Costco cracks down on membership card sharing

Costco shoppers who use someone else’s membership card are not going to like this. The retail giant is clamping down on membership sharing, which has surged since the self-checkout popularity.

Now, not only must you show your card at Costco’s entrance, but a photo ID is also required at the self-checkout register. And now, the retailer is testing a new system it is currently testing.

Members will need to scan their membership cards at the store entrance instead of showing them to employees.

Why?
The move addresses a rise in non-members using others’ cards and aligns with practices of other companies like Netflix, aiming to prevent unauthorized access to non-members.

Costco’s membership model is crucial to its business as it contributes to profits and helps maintain competitive prices. In 2022, the retailer earned $4.2 billion in membership fees, with a high renewal rate of 93%.

Costco hasn’t raised membership fees since 2017.