Sharing Your Costco Membership Card? You Might Regret That

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Attention, Costco shoppers : If you and your pals love Costco but balk at the annual fee, sharing a membership card may seem like a sneaky work-around. But a big change is coming to Costco warehouses that's aimed at clamping down on membership sharing.

How Costco is reining in membership sharing

Costco can offer all those great deals – like those $4.99 rotisserie chickens and the $1.50 hot dog and soda combo -- because it charges a membership fee. A Gold Star membership costs $60, while an Executive membership will set you back $120. Those prices increase to $65 and $130, respectively, on Sept. 1.

If you're a Costco member, you know that you have to present your membership card to an employee before entering the warehouse. But soon, you'll be required to scan your physical or digital membership card using devices that Costco is installing at each local warehouse. You'll also need to present your photo ID if your card doesn't include your picture.

If you're not a member, you'll need to be accompanied by someone who is. Non-members or those whose membership is inactive or expired will be directed to the membership counter before they can enter the warehouse to shop.

Why the change?

Richard Galanti, director and executive vice president at Costco, told CNN in January that the warehouse chain has seen a spike in people sharing memberships since the beginning of the pandemic in 2020. Last year, the company began requiring a membership card with a picture or a photo ID to use the self-checkout scanners after noticing more non-members using the devices.

Costco's policy on sharing memberships isn't changing, though. Costco memberships have always been non-transferrable. When you buy a membership, you also receive a Household Card that you can assign to someone in your household age 16 or older. You can also bring up to two guests with you when you shop, but only members can make purchases.

What if Costco catches you sharing a membership?

Most membership-based warehouse clubs, including Costco and rival Sam's Club, reserve the right to revoke your membership for any reason. When you join Costco, you agree to follow all of its rules, including its policies on membership sharing. If you break the rules and let others use your card, you risk having your membership revoked.

Note that there are a few Costco purchases you can make without a membership. For example, you can have your prescriptions filled at the pharmacy and get eye exams even if you're not a member. Depending on your state's law, Costco may be required to allow non-members to purchase alcohol -- assuming the customer is 21 or older, of course. Non-members can also buy some items at Costco.com, though non-members pay 5% more than members.

But if you consistently enjoy a lower credit card tab for everyday essentials, like groceries and gas, it's probably worth shelling out the money for a Costco membership.

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