Costco is cracking down on non-members with stricter ID checks

Costco is now scanning membership cards at select warehouse entrances, with plans to expand this practice to all locations. This test, confirmed by Costco in January, is an attempt to improve the member experience and prevent non-members from using someone else's membership.

"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 by placing the barcode or QR Code against the scanner," Costco said in a statement to members.

Guests must accompany a member with a valid card, and customers with inactive memberships will be directed to the membership counter. Members are encouraged to add a photo to their card or carry a valid photo ID. New scanners have already been spotted at Costco locations in Huntington Beach and Inglewood, California, per a report by KTLA, a Los Angeles TV station.

Why is Costco doing this?

Scanning memberships is a way for Costco to protect its membership fees, which are a significant source of revenue. In 2023, the retailer made $4.6 billion in membership fees from nearly 128 million members, according to their Annual Report. With a recent price hike, "Gold Star" memberships will now cost $65, and "Executive Memberships" will increase to $130.

Costco wants to ensure that only paying members access the benefits of shopping at their warehouses. In a statement to Business Insider last year, Costco said:

"We don't feel it's right that non members receive the same benefits and pricing as our members."

What do I need to enter a Costco warehouse?

Each "Gold Star" and "Executive" membership comes with two physical cards, and you can also use a digital membership card via the Costco app. Instructions for accessing the digital card are available on the Costco website.