The Sneaky Self-Checkout Trick You Won't Get Away With At Costco

Costco has stayed at the top of the warehouse chain game by introducing new and exciting products — like its popular Italy-inspired tiramisu cheesecake, which has received rave reviews — that are sold alongside its established favorites. Like other big box stores, such as its main rival, Sam's Club, it's a members-only kind of club. That said, certain shoppers who were not members have used trickery like card-sharing in the past to make their purchases at Costco. However, these sneaky shoppers might find their efforts thwarted next time they head into the store.

This is because Costco is cracking down on non-members using a friend or family member's membership card at the self-checkout area. In late summer 2024, Costco announced that starting September 1, 2024, the warehouse chain planned to not only ask people entering the store to scan their membership card, but they might be asked by employees at self-checkout to show that the photo they have on their membership card matches the face of the person wielding it. If the shopper happened to have a membership card without a photo, they could be asked to show some other form of ID, like a driver's license, to ensure that the names and face match.

There is a reason for Costco's crackdown on memberships

Costco didn't always offer self-checkout; the chain actually attempted to implement these types of lanes, only to get rid of them in 2013. By 2019, Costco was ready to give it another go, and has continued to expand self-checkout's presence in stores around the country. However, with that expansion came enough opportunistic non-member shoppers who sought (and found) ways of getting around the membership fee — such as using of other people's membership cards upon entering the store and at the self-checkout kiosks.

While Costco has not disclosed whether or not this "hack" hurt the company's bottom line, the company decided it wasn't going to stand for it. Costco once spoke out about the rampant membership-sharing, saying, "We don't feel it's right that non-members receive the same benefits and pricing as our members," per Supermarket News. Clearly, Costco wants to encourage a fair and equitable shopping experience for paying members. It might also be significant that Costco made the announcement that it was going to be on the lookout for non-members at self-checkout around the same time that the retailer raised membership prices for the first time in seven years. 

Why membership status matters so much at Costco

You might be wondering, "What's the big deal?" So, a major, multi-billion dollar company loses out on a few memberships, big whoop. Actually, Costco's memberships reportedly make up the majority of its profits; in just one quarter of 2024 membership fees accounted for $1.1 billion in revenue (via Forbes). Any company would be foolish to not crack down on such a significant revenue generator, especially when the chain sells a number of loss-leaders — in Costco's case, that would be the beloved food court $1.50 hot dog and soda combo, as well as the $4.99 rotisserie chickens. Neither is profitable, but these popular products motivate people to invest in memberships and renew their status annually. 

It's not just Costco that benefits from people actually paying for memberships. The membership fees help Costco keep the prices of goods that fill the stores lower , by equalizing profits and allowing the warehouse chain to pass on savings to shoppers. And customers should not take their memberships for granted, either. When you sign up, you agree to the company's member privileges and conditions, which states that your membership can be terminated by Costco at any time and for any reason — including sharing your card with a non-member. Try to help a friend get around the membership fee at self-checkout, and you could end up with a lifetime ban — no more food court hot dogs and low prices on bulk goods for you.