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In another attempt to crack down on membership sharing and nonmember walk-ins, Costco will soon require shoppers to scan their membership cards before entering, according to an update on the warehouse club’s website.
Historically, members entered by flashing their cards at employees.
The online note states, “Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. 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.”
Members are encouraged to stop by the membership counter to have a photo taken and added to their card if their card doesn’t have one. If not, they’ll be asked to show a valid photo ID upon entering.
The note also included a reminder that any guest shopper must be accompanied by a valid member for entry. An attendant will still be available at the entrance to address any questions or concerns.
Last summer, Costco began asking shoppers using self-checkout registers for their membership cards along with a photo ID — the same policy as regular checkout lanes — after finding nonmembers sneaking in to use membership cards that don’t belong to them.
“We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” Costco said in a statement.
Some social media critics of the card checks at self-checkout noted that they were making purchases for their elderly parents. Some felt harassed by Costco’s staff asking for their cards. One angry Redditor wrote, “I get WHY they are doing it, but they need better training because these employees are treating people like we’re all there to shoplift.”
Richard Galanti, Costco’s recently retired CFO, told The Wall Street Journal at the time that only a “really small percent” of members are sharing cards, “but when you’re dealing with millions of transactions, even a very small percentage is something you would want to correct.”
Galanti later told CNN that entrance scanners would mean associates wouldn’t have to ask customers for their membership cards at either regular checkout registers or self-checkout.
“It speeds up the process at entry and speeds up the process at the checkout,” Galanti said.
Costco earlier in the year also cracked down on nonmembers using its food court.
Costco relies on membership fees to drive most of its profits and help keep product prices low. Membership fees accounted for $4.6 billion, or 73% of Costco's total profit in 2023, according to CBS News.
In mid-July, Costco announced plans to raise annual membership fees in North America in its first increase since 2017.