First Netflix, now Costco. Some of the country’s most recognizable firms are moving to curb membership sharing.
Costco recently announced it will be enforcing rules against card sharing. A basic Costco membership costs $60 annually and includes up to two cards for people living at the same address.
Nonmembers Have Been Using Members’ Cards at Self-Checkout
Like many retailers, Costco has expanded its self-checkout options. (That’s largely a cost-cutting measure to reduce staffing.) That change revealed a common workaround: people borrowing other customers’ Costco cards and scanning them at self-checkout to avoid detection.
At staffed lanes, employees typically inspect membership cards, many of which include the member’s photo. From experience, those photos are often small and unclear, so cashiers usually verify that the name on the membership matches the name on the payment card.
At self-checkout, however, customers can simply scan a membership card and then scan their purchases without anyone visually confirming the card or requesting ID.
‘We Don’t Feel It’s Right,’ Costco Says
“Our membership policy states that our membership cards are not transferable and since expanding our self-service checkout, we’ve noticed that non-member shoppers have been using membership cards that do not belong to them,” Costco said in an emailed statement. “We don’t feel it’s right that non-members receive the same benefits and pricing as our members.”
As a result, Costco is changing procedures. It will begin verifying IDs at self-checkout to ensure only genuine members use the membership cards.
“As we already ask for the membership card at checkout, we are now asking to see their membership card with their photo at our self-service checkout registers,” Costco said. “If their membership card does not have a photo, then we ask for a photo ID.”
Costco reports nearly 125 million members across almost 70 million households on its website. To stay competitive with clubs such as BJ’s and Sam’s Club, Costco has not increased membership fees since 2017.
“A total of two people can be on a Gold Star Membership… one Primary Member and one free household member who is over 16 and lives at the same address,” Costco notes. “If you are the Primary Member, we leave it up to you to decide who receives the second card.”
Netflix Started the Trend
This follows Netflix’s recent policy change to restrict password sharing. Netflix now charges $7.99 per month when a member shares their password with someone outside their household.
The streaming giant, known for hits like “Stranger Things,” “Squid Game” and “The Crown,” historically tolerated password sharing. It now says the practice has become a significant revenue drain.
With Netflix subscription costs already higher in the U.S. — rates rose in January to $9.99 monthly for a basic plan, $15.49 for a standard plan and $19.99 for premium — the added surcharge could be a dealbreaker for some users.
What Nonmembers Can Still Do at Costco
It’s worth noting there are several Costco services and items available without a membership.
1. Prescriptions
Costco’s pharmacy can be used without a membership — state law protects access. You can also get low-cost vaccinations, hearing screenings and eye exams without joining.
2. Alcohol and Wine
One surprising fact about Costco: it is the largest wine retailer in the U.S., and in certain states it must sell alcohol to nonmembers. Due to post-Prohibition-era legislation, in 14 states you can purchase alcohol at Costco without a membership.
3. Online Orders
Some Costco items are available only online, which can benefit nonmembers. A 5% fee applies to purchases on Costco.com, but you still gain access to many of the same products, including popular discounted gift cards.
The Food Court Favorite Remains Affordable
For shoppers, here’s one small consolation: Costco’s iconic hot-dog-and-soda combo remains $1.50 — the same price it has been since 1985.
Jordan Ellis ( [email protected] ) is a senior writer at Savinly. Senior writerAlex Mercercontributed to this article.
