MONEY

'We don't feel it's right': Costco cracks down on card sharing among non-member shoppers

Eric Lagatta
USA TODAY
A man exits a Costco in Colorado with a full grocery cart in January.

Costco's membership policy hasn't changed, but shoppers at the wholesale club may have noticed lately that the frequency with which it's enforced seems to have increased.

That's because employees at the membership-only retail chain are more routinely asking to see shoppers' membership IDs with their photo when they use the self-checkout lanes, Costco said in a statement provided to USA TODAY.

The crackdown on unauthorized card-sharing comes as employees have reportedly noticed that the expansion of the chain's self-service checkouts has coincided with more shoppers using membership cards that don't belong to them, Costco said.

"We don’t feel it’s right that non-members receive the same benefits and pricing as our members," the statement read. "Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us."

Sam's Club vs. Costco:Is paying an annual fee worth the savings for shoppers?

Mixed reactions among Costco faithful

Those who have gotten used to lending out their membership cards to friends or family now find themselves in a similar position as Netflix viewers did earlier this year when the streaming service undertook a similar enforcement measure.

Users of the popular platform faced a difficult choice when Netflix cracked down on password sharing: transfer those who don't live in their household to their own accounts, or pony up another $8 per month to continue sharing it.

Netflix and not chill:How to cancel your account after Netflix ban on password sharing.

The decision seems to have left Costco customers divided.

A query posted by USA TODAY in the Costco Fans Midwest Facebook group drew comments from dozens of users. Some supported Costco's strategy of stricter enforcement while other card-carrying members saw it as an unnecessary − even intrusive − step that inconvenienced them while shopping.

"I’ve felt more and more like I’m doing something wrong each time I go," commented Ashely Dixon, a member of the group who said she was stopped four times in one recent trip in Illinois. "It's annoying to be hounded at every step while shopping."

However, other people commenting supported the strict enforcement, saying that those who flout the membership rules may be responsible if Costco raises its prices.

"I pay extra to shop somewhere to get the good prices," said Lisa Ladonski, another Illinois shopper. "It’s not fair for multiple people to use one membership because let’s say they all want to buy the same thing I do, they get to it and buy it and now I can’t get what I need because they’re taking advantage of the system."

How much are Costco memberships?

Costco's basic "gold star" membership costs $60 per year and is good for up to two people per household, while the "executive" membership is double the price with additional perks. Business memberships comes with the option to add $60 for each additional user.

Membership fees account for the majority of Costco's profit, allowing the company to keep product prices lower than similar grocery stores and retailers. Costco employees have long required customers to show their membership cards at traditional checkout lanes, a requirement the chain said is now extending to the self-service lanes.

Eric Lagatta covers breaking and trending news for USA TODAY. Reach him at elagatta@gannett.com and follow him on Twitter @EricLagatta.