In another attempt to crack down on membership sharing and walk-in visits by non-members, Costco will soon require customers to scan their membership cards before entering, according to an update on the big box club’s website.
Previously, members could grant employees access by showing them their card.
The online announcement states: “In the coming months, member scanners will be deployed at the front door of your local warehouse. Once deployed, all members will be required to scan their physical or digital membership card by holding the barcode or QR code to the scanner before entering.”
Members are asked to stop by the membership desk to have a photo taken and added to their card if they do not have one, otherwise they will be asked to show a valid photo ID upon entry.
The notice also included a reminder that each guest shopper must be accompanied by a valid member to enter. A member of staff will continue to be available at the entrance to answer any questions or concerns.
Last summer, Costco began requiring customers to show their membership card and photo ID at self-checkout lanes—the same practice it uses at regular checkout lanes—after discovering that non-members were secretly logging in with membership cards that didn’t belong to them.
“We do not believe it is right for non-members to receive the same benefits and prices as our members,” Costco said in a statement.
Some critics of the card checks at self-checkouts on social media pointed out that they were making purchases for their elderly parents. Some felt harassed by Costco employees who asked for their cards. One angry Reddit user wrote, “I understand WHY they do this but they need better training because these employees treat people like we’re all here to steal.”
Richard Galanti, Costco’s recently retired CFO, told the Wall Street Journal at the time that only a “really small percentage” of members share cards, “but when you’re dealing with millions of transactions, even a very small percentage is something you want to correct.”
Galanti later told CNN that thanks to the entrance scanners, employees would no longer have to ask customers for their membership cards at regular checkouts or at self-checkout lanes.
“It speeds up the process at the entrance and the checkout,” Galanti said.
Costco also cracked down on non-members using its food court earlier this year.
Costco relies on membership fees to generate the majority of its profits and keep product prices low. According to CBS News, membership fees will account for $4.6 billion, or 73% of Costco’s total profits, in 2023.
In mid-July, Costco announced plans to raise annual membership fees in North America, the first increase since 2017.
