Costco has built a loyal following thanks to its bulk bargains, generous return policy, and membership perks. But even shoppers who have been flashing their membership cards for years might not fully understand how some of the warehouse club’s rules actually work. And while certain policies are surprisingly flexible, others come with exceptions that could leave you frustrated at checkout or cost you money.
For example, did you know that nonmembers can still make certain purchases at Costco? Or that the warehouse club’s famous return policy doesn’t apply to absolutely everything? Even Executive members might be surprised to learn which purchases don’t count toward their annual 2% reward.
Whether you’re a longtime Costco regular or considering joining for the first time, understanding the fine print can help you avoid unnecessary headaches. Here are 12 Costco rules and policies that shoppers frequently misunderstand.
Thinking Your Costco Membership Card Can Be Shared With Anyone
Just because you’re paying for a Costco membership doesn’t mean you can lend your card to whoever needs to stock up on groceries. Costco memberships are nontransferable, meaning your spouse, friend, or adult child can’t simply borrow your card and shop independently. The warehouse club also requires members to scan their membership credentials at the entrance, and screenshots or photos of cards won’t cut it. Costco checks membership identification at checkout, too, so trying to sneak someone through with your card could lead to an awkward conversation before they even reach the register.
Assuming the Free Second Membership Card Can Go to Any Relative
A standard Costco membership includes a complimentary Household Card, but that doesn’t mean you can hand it over to your sister across town or your adult child living in another state. According to Costco’s membership rules, the additional card is reserved for someone who’s at least 16 years old and lives at the same address as the primary or affiliated member. The second cardholder also needs their own photo on the card. So while it’s a useful perk for couples, roommates, or eligible family members sharing a home, it isn’t a way to extend your membership to relatives living elsewhere.
Believing Guests Aren’t Allowed Inside Without Their Own Membership
You don’t necessarily have to leave your nonmember friends behind when heading to Costco. Members are allowed to bring their children and up to two guests into the warehouse, which means you can introduce someone to the wonders of Kirkland Signature products without making them purchase a membership first. There’s an important catch, though: Only members can make ordinary merchandise purchases. Guests can browse and tag along, but they can’t use your membership to shop independently. Costco also makes members responsible for the guests they bring inside.
Thinking Costco’s Return Policy Covers Absolutely Everything Forever
Costco’s famously generous return policy is one of its biggest selling points, but it isn’t quite the unlimited safety net some shoppers imagine. While most merchandise falls under the company’s satisfaction guarantee, certain electronics, including televisions, computers, tablets, cameras, and major appliances, generally have a 90-day return window starting when you receive the item. Other purchases, such as precious metals, gift cards, and certain tickets, may be nonrefundable altogether. Before splurging on an expensive television or refrigerator, it’s worth checking the specific return rules rather than assuming you can bring it back whenever you want.
Assuming a Costco Membership Fee Can Never Be Refunded
If you paid for a Costco membership and later realized you barely use it, you might assume that annual fee is money down the drain. Fortunately, Costco offers a satisfaction guarantee on memberships, too. The company says it will cancel and refund your membership fee if you’re dissatisfied, which is considerably more flexible than many shoppers realize. Just keep in mind that Executive members who are thinking about downgrading may face additional considerations involving their upgrade fee and any rewards they’ve already earned or received. It’s worth asking about those details before making changes to your membership.
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Believing Nonmembers Can’t Purchase Anything From Costco
You might think that shopping at Costco without paying for a membership is completely off-limits, but there are a few exceptions. Nonmembers can purchase prescription medications through Costco pharmacies, and certain items on Costco.com are available without a membership, generally with a 5% surcharge. That doesn’t mean you can walk into your nearest warehouse and request a free shopping pass, though. Costco doesn’t offer general one-day passes for nonmembers, and pharmacy access doesn’t give you permission to browse the aisles and purchase ordinary merchandise. Still, these exceptions can come in handy if you’re not ready to commit to an annual membership.
Thinking Costco Shop Cards Are Only Useful to Members
A Costco Shop Card might seem like a strange gift for someone who doesn’t have a membership, but it’s actually one of the exceptions to the warehouse club’s usual shopping restrictions. Both members and nonmembers can redeem these gift cards for eligible purchases at Costco locations in the U.S., Canada, and Puerto Rico, as well as online. However, only Costco members can purchase or reload Shop Cards. They also don’t expire, although they’re generally nonrefundable and can’t be exchanged for cash unless required by law. One additional detail worth knowing: Digital Shop Cards currently can’t be used at food court kiosks.
Assuming Any Major Credit Card Works at the Warehouse
Imagine filling your cart with hundreds of dollars in groceries, only to discover that your credit card isn’t accepted at checkout. Unlike most major retailers, Costco warehouses in the U.S. only accept Visa credit cards, meaning that regular Mastercard, American Express, and Discover credit cards won’t work. The rules are different online, where Costco.com accepts both Visa and Mastercard credit cards. Fortunately, warehouse shoppers have other payment options, including most PIN-based debit cards, cash, and Costco Shop Cards. Just remember that a Mastercard debit card isn’t the same thing as a Mastercard credit card when it comes to Costco’s payment rules.
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Assuming You’re Stuck With the Original Price if an Item Goes on Sale
Few shopping experiences are more frustrating than buying something expensive and seeing it advertised for less a week later. Fortunately, Costco has a price adjustment policy that can help members avoid that particular headache. If an eligible item drops in price within 30 days of purchase, you may be able to request a refund for the difference instead of returning the product and purchasing it again. For online orders, Costco provides a price adjustment request process through its website. If you bought the item at a warehouse, you’ll generally need to visit the returns counter at the original location. Keep in mind that certain promotions and other restrictions may affect eligibility.
Believing Costco Will Match Any Lower Price You Find
Costco might be known for competitive prices, but that doesn’t mean it’ll match every bargain you discover elsewhere. The retailer doesn’t offer price matching against competitors like Walmart, Target, or Amazon, so finding an identical product for less at another store won’t automatically get you a discount. Costco also doesn’t match warehouse prices when adjusting Costco.com purchases. That’s because online prices may include shipping and handling costs that aren’t reflected on warehouse price tags. If you’re making a major purchase, comparing prices is still worthwhile, but don’t count on Costco lowering its price simply because another retailer has a better deal.
Thinking Executive Members Earn 2% Back on Everything
Paying extra for Costco’s Executive Membership can make sense for frequent shoppers, but there’s a catch that some members overlook: Not every purchase earns the advertised 2% annual reward. Gasoline, food court purchases, Costco Shop Cards, and membership fees are among the excluded categories, while certain prescription and alcohol purchases are also subject to restrictions. The Executive upgrade currently costs an additional $65 annually, and rewards are capped at $1,250 per 12-month period. That means members shouldn’t simply multiply their total annual Costco spending by 2% and assume that’s what they’ll receive. Before upgrading, it’s worth calculating how much you actually spend on qualifying purchases.
Assuming Executive Reward Certificates Work Like Regular Gift Cards
If you’ve earned Costco’s annual Executive 2% reward, don’t assume you can spend the certificate anywhere you would use a regular Costco Shop Card. According to Costco, Executive reward certificates must generally be redeemed for eligible merchandise at staffed front-end warehouse registers, meaning you can’t use them at self-checkout or directly on Costco.com. You can also apply the reward toward your membership renewal. If you’d rather shop online, Costco allows members to purchase a Shop Card using their reward certificate at a warehouse and then use that card online. And here’s another detail that might surprise you: The date printed on the certificate is its issue date, not an expiration date.
Knowing Costco’s Rules Can Save You Money
Costco’s membership benefits can be more flexible than shoppers realize, especially when it comes to refunds, price adjustments, and certain purchases available to nonmembers. But other policies, including membership sharing restrictions, electronics return deadlines, and Executive reward exclusions, are considerably stricter. Taking a few minutes to understand the fine print before your next warehouse visit could help you avoid an unpleasant surprise at checkout and make the most of the membership you’re already paying for.
