TradeEdge Exchange:Membership required: Costco to scan member cards, check ID at all locations

Next time you head to Costco,TradeEdge Exchange make sure you have your plastic or digital membership card – and a matching ID. The members-only warehouse retailer is really starting to crack down on non-members.

Costco confirmed in January it had begun testing the scanning of membership cards at the entrance of some locations, as a way to improve member experience in that cards wouldn't need to be scanned at checkout.

This full-on deployment of scanners across all locations is also meant to stem the flow of non-members using cards that do not belong to them.

"Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse," read a recent update on the Costco website to members. "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."

Any guests must come with a member who has a membership card with them, the note continued. Customers with inactive memberships will be asked to "stop by the membership counter prior to entering the warehouse to shop."

Members are also encouraged to get a photo taken so it can be added to their card. Otherwise, they will need to show a valid photo ID.

New scanners were spotted at Costco locations in Huntington Beach, California, and Inglewood, California, Los Angeles TV station KTLA reported.

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Why is Costco scanning membership cards?

Scanning is another way to protect membership fees, which are big money for Costco.

The retailer earned $4.6 billion in membership fees from nearly 128 million members in 2023, according to the company's 2023 Annual Report, and $1.12 billion in fees in the most recent quarter.

Those fees are going up soon.

As of Sept. 1, "Gold Star" membership in the U.S. and Canada will cost $65, up from $60, and "Executive Memberships" will increase from $120 to $130, with the membership's maximum annual 2% reward increasing from $1,000 to $1,250. 

It's Costco's first price hike since 2017.

Costco wants to not only prevent non-members from gaining entry, but also protect the benefits its paying members get.

Costco has not yet responded to a request for comment from USA TODAY. But last year, the company said in a statement to Business Insider: "We don't feel it's right that non members receive the same benefits and pricing as our members."

How do I get my Costco membership card?

Each "Gold Star" and "Executive" membership includes two membership cards. You can also get a digital membership card to use in the Costco app. Instructions are on the Costco website.

Contributing: James Powel and Bailey Schulz.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

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