Costco installs membership card scanners at store entrances

Costco plans to install scanners at store entrances to limit the use of membership cards by non-members, the company announced.

The members-only department store began testing membership card scanning at the entrance of some locations in January, it announced. After scanning at the front door, members will no longer need to have their cards scanned at checkout.

Costco in East Peoria is not yet scanning cards. When contacted Thursday, the company had no information on when the store would begin scanning cards, but said all stores will eventually use scanners to “match members to their cards before shopping,” according to a spokesperson. New scanners have been spotted at two Costco stores in California, Los Angeles television station KTLA reported.

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“In the coming months, member scanners will be deployed at the front door of your local warehouse,” says a recent update on Costco’s membership website. “Once deployed, all members will be required to scan their physical or digital membership card by holding the barcode or QR code to the scanner before entering.”

Guests must be accompanied by a member who has a card on them, and customers with inactive memberships will be asked to stop by the membership counter. Costco requires members to have photos taken so they can be added to their cards, otherwise they will be required to show a valid photo ID.

Why does Costco scan membership cards?

Scanning is another way to protect membership fees, which mean big money for Costco. According to the company’s 2023 annual report, the retailer earned $4.6 billion in membership fees from nearly 128 million members in 2023, and $1.12 billion in fees last quarter.

Those fees will soon be going up. Starting September 1, Gold Star memberships in the U.S. and Canada will cost $65 (up from $60), and Executive Memberships will increase from $120 to $130, with the maximum annual 2% membership premium increasing from $1,000 to $1,250. It’s Costco’s first price increase since 2017.

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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 in the Costco app. Visit the Costco website for instructions.

Contributors: James Powel, Bailey Schulz and Mike Snider

Why does Costco scan membership cards?

How do I get my Costco membership card?

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