Costco, a leading membership-only warehouse club, has revised its policies and is now restricting the sharing of membership cards. Responding to potential fraud and misuse, the company has instituted new rules. Previously, members could authorize others to use their cards and reap the associated benefits. However, moving forward, only the original cardholder, or those designated through the Household Card system, will have access to Costco’s services.
As a part of this policy, direct family members living at the same address as the primary account holder can qualify for the Household Card. Both the primary and secondary Household Card members have a unique membership number and card, but both memberships are tied to the same account. The cards can be revoked if the primary member ceases to be a Costco member or if the two individuals no longer live together.
Furthermore, Business Membership holders can add a few more cardholders, termed Additional Cardholders. However, these additional cardholders would have to be affiliated with the business, either as owners or managers.
This abrupt policy change aims at curbing the misuse of Costco’s generous return policy and in-store discounts. Such misuse can cost the company significantly, damaging its ability to offer low prices. Costco has not clarified whether it will put any restrictions on online shopping, where a potential abuser could simply enter the membership information manually.
Overall, the objective of these changes is to crack down on fraud and misuse while ensuring that only the actual members or individuals living with them use the services. Costco expects this policy will enable them to continue offering their renowned low prices while protecting the integrity of their membership system.