Costco to start scanning membership cards at the entrance of all its stores

Costco Wholesale is installing membership scanners at the entrances of all of its locations to discourage non-members from shopping at the stores. 

Soon, instead of flashing their cards at employees, Costco members will be required to scan them as they are entering, the retailer said.

“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. Once deployed, prior to entering, all members must scan their physical or digital membership card,” the retailer stated on its customer service page. 

Guests must also be accompanied by a valid member in order to enter a store, Costco added.

The discount retailer began testing the technology earlier this year, with Chief Financial Officer Richard Galanti relaying that more people had been sharing memberships since the pandemic in 2020. 

The scanners also spare Costco employees from having to ask shoppers for membership cards at registers and self-checkout, speeding up the process of entering and checking out, the Galanti told CNN.

Discounted dogs for members only

Costco earlier in the year cracked down on who uses its food court to ensure that only members can capitalize on its famous $1.50 wiener-and-soda deal.

The retailer recently began asking for shoppers’ membership cards, along with a photo ID, at self-checkout registers, a policy the company also applies at regular checkout lanes. 

“We don’t feel it’s right that non-members receive the same benefits and pricing as our members,” Costco stated at the time. 

Costco said last month it was hiking its basic membership fee for the first time since 2017, increasing the annual charge to $65 from $60. The roughly 8% cost increase takes effect on September 1, the warehouse club announced. The cost of a premium membership is rising to $130 from $120. Costco also said the maximum annual 2% reward for its executive membership will rise to $1,250 from $1,000.

Revenue from the annual fees make up much of Costco’s profits, according to its yearly report. The company in 2023 garnered $4.6 million from membership fees, up 8% from the year before, with membership growing to almost 128 million cardholders and Costco touting a 90% renewal rate. 

The pricing change affects about 52 million memberships. Costco operates 882 warehouses, including 609 in the United States and Puerto Rico.