Costco cracking down on non-members taking advantage of deals

Will Costco become the strictest members-only club ever?

The big box retailer has announced plans to check membership cards as shoppers enter the store in the coming months.

The wholesaler will place scanning devices at the entrance of stores to automatically verify membership at the door instead of at checkout as previously required.

“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,” the announcement explained.

Members who do not have their photo on their Costco membership card will be required to provide a photo ID and are encouraged to update their card with a photo at the membership desk.

Guests will still be allowed to enter but must be accompanied by a cardholder.

The automated process has been rolled out in several locations across Washington and California and has been used in the UK for several years.

Stores in New York, Florida, Texas and Pennsylvania have confirmed that it will soon kick in there but have not announced exactly when.

Costco membership perks include free samples, discounts on food, gas, home insurance, travel and grocery items, plus an annual 2% reward on qualified purchases at its warehouses.

“We don’t feel it’s right that non-members receive the same benefits and pricing as our members,” a spokesperson previously told Business Insider.

The new scanners are also reportedly speeding up the checkout process and parking space turnover, according to the company.

The new membership card scanners come as the national chain is cracking down on membership sharing, pushing ahead with technological updates amid rising membership fees.

Leaders have shared plans to deploy more technology in-store and add options like buying online and picking up in-store.

They also announced a hike in annual membership fees for the first time in seven years for its U.S. and Canada customers, effective Sept. 1.

The new policies are being credited for a boost in profits, rising to $1.68 billion in the third quarter ending in May 2024 — a 29% increase from the year before, Fox News reported.

But don’t worry, Costco lovers — the $1.50 hot dog is safe.