Costco membership scanners coming to clubs in sharing crackdown
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Costco Wholesale Club is adding membership scanners at entrances. Photo: Patrick T. Fallon/AFP via Getty Images
Costco's membership sharing crackdown is going nationwide, and members will soon need to scan their cards when entering clubs.
Why it matters: The membership scanners come as the wholesale club prepares to raise membership prices for the first time in seven years.
- It's also the latest effort to convert freeloaders into paying members, similar to Netflix's password-sharing shakedown.
Driving the news: Costco said on its customer service website that over the coming months, "membership scanning devices will be used at the entrance door of your local warehouse."
- Costco began testing scanners at several locations to ensure members are matched to their cards earlier this year.
- "Costco locations are scanning Costco membership cards at the entrance to match members to their cards prior to shopping," the company said in a statement sent to Axios Thursday.
How it works: Costco said that once scanners are deployed, prior to entering clubs, "all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner."
- "Guests must also be accompanied by a valid member for entry," Costco said.
- Costco's current policy asks members to show cards when entering a club (usually a glance from a distance) and also scan them at checkout.
Zoom in: "It helps speed up the process," Richard Galanti, Costco's former chief financial officer, told Axios in January.
- "When you go through checkout, particularly self-checkout, there's not someone there having to review the card again," Galanti said.
Flashback: Last summer, Costco started asking shoppers to see membership cards at self-service checkout registers at clubs nationwide.
Costco membership cost 2024
State of play: Costco kept its membership fees steady despite inflation, aiming to maintain its reputation for value. The company last hiked rates in June 2017.
- Gold Star and business membership fees will increase from $60 to $65 beginning Sept. 1.
- Annual fees for executive memberships, which include a 2% reward on purchases, will increase by $10 from $120 to $130.
Yes, but: The price hike comes with a bonus for executive members. Costco is increasing the 2% reward maximum they can earn from $1,000 to $1,250.
Editor's note: This story was updated with details throughout, including a comment from Costco.
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