Costco Says No More Membership Sharing, Pilots New Technology To Tackle Problem

Costco will now match members to their cards at the door prior to shopping.

Costco, the popular shopping club, is exploring measures to curb membership-sharing practices where individuals without an annual membership capitalize on paying members. Traditionally, Costco members show their cards at store entrances for access, and while memberships are nontransferable, households can obtain one extra membership card. With basic membership costing $60 annually and an executive membership, offering perks like a 2% cash-back reward, priced at $120 per year, the club is testing a strategy to address the issue, according to Fortune.

In an effort to combat membership sharing, Costco is initiating a trial whereby shoppers are required to scan their membership cards at store entrances. This move follows the introduction of self-checkout registers At Costco, which have created opportunities for nonmembers to slip through undetected. A Costco spokesperson explained the purpose of the test was “to match members to their cards at the door prior to shopping for an improved member experience.”

Last summer Costco implemented a new policy requiring its shoppers to present their photo identification along with their physical membership card at its self-checkout registers, aligning with the existing practice at regular checkout lanes supervised by staff. Costco emphasized the importance of ensuring that its nonmembers did not receive the same benefits and pricing as its legitimate members.

Photos of the new system in action were shared on Reddit by a shopper who witnessed the technology at a store in Issaquah, Washington, where Costco is headquartered. A sign placed near a scanner notifies shoppers, “You will be asked to scan your membership card before entering the warehouse,” while a store worker oversees the process.

With 871 warehouses globally, including 600 in the United States, Costco’s trial reflects its commitment to maintaining the exclusivity of membership benefits and preventing unauthorized access. The outcome could shape how the club addresses membership-sharing challenges across its extensive network of locations.