Costco is putting an end to shared membership by making a change that could redefine how you shop

It's not unusual for people to watch shows or earn discounts using subscriptions that their friends pay for. But gone are the days when shoppers would use someone else's Costco card to get exclusive deals since the retailer has deployed new technology to crack down on the practice with better verification. After introducing a photo-verification system in 2023, Costco is now installing special devices at its store entrances that will scan each membership card, and make sure the user is indeed its original owner.

Costco's latest move to prevent shared membership

The Washington-based wholesale chain is the latest to crack down on membership sharing following Neflix's introduction of measures to prevent people from using their paid accounts of their friends and family members, to avoid buying a membership.

“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse,” Costco said in an online statement, after rolling out preventive measures in August.

The statement added that all members will be required to scan their physical or digital membership cards by placing the barcode or the QR code against the scanner machine. Members who do not have their photo on the card will need to show a valid photo-ID to enter the store. At the same time the company is also encouraging shoppers to visit the membership counter and have their photo taken, CBS News reported.

Under the new rule guests at the store need to be accompanied by a valid cardholder to enter, which makes it more difficult for non-members to sneak in. Furthermore, upon detection, non-members or those with expired or inactive memberships will be directed to the membership counter to get their valid membership before accessing the warehouse.

Similar measures were introduced last year where members were instructed to show their photo ID and membership cards at the register and self-checkout machines. “We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” Costco's statement from last year read.  

How has Membership Changed?

Costco’s crackdown on non-members was followed by a rise in its membership fee. From September 1, the price of Costco's Gold Star membership went up from $60 to $65. Similarly, the cost of the Executive Membership went up from $120 to $130. This marked the first price hike introduced by the company since 2017. The bulk-retailer also increased the maximum annual 2% reward for its executive membership from $1,000 to $1,250. 

The company has a track record of increasing membership costs every five years, but this time it took a longer time since shoppers were impacted by high inflation. Last year, the company reported that the bulk of its profits come from annual fees. Costco earned $4.6 billion in revenue from membership fees in 2023, marking an increase of 8% from 2022.

While Costco’s membership fee went up, the price of its iconic hot dog-and-soda combo has remained the same since the 1980s.

Earlier this year, Costco’s new CFO Gary Millerchip confrimed that the price the combo will remain at $1.50, with no change, Today reported. Another thing that remains the same is Costco's generous return policy that has allowed members to return decades old items.