That Costco membership card sitting in your wallet? It’s worth way more than the $65 you paid for it. Between those famous $1.50 hot dogs, the endless free samples, and prices that make other stores look ridiculous, losing access to Costco would be a serious problem. But here’s something most people don’t realize: Costco can actually take away your membership, and they don’t need to give you a warning first. The company has a few hard rules that get people kicked out every single year, and some of them might surprise you. While Costco is pretty relaxed about most things, cross certain lines and you’ll find yourself permanently banned from those giant shopping carts and bulk toilet paper forever.
Returning stuff you’ve already used gets you banned
Costco has one of the most generous return policies in retail. You can bring back almost anything, anytime, without even keeping your receipt. They’ll look up your purchase history using your membership card and give you a full refund. Sounds great, right? The problem starts when people treat Costco like a free rental service. Some shoppers have returned mattresses after sleeping on them for ten years. Others have brought back empty wine bottles claiming the drink gave them a headache. One person even tried returning Christmas decorations in January after the holiday was over.
According to Costco employees, these extreme cases happen more often than you’d think. The company tracks every single return you make through your membership number. Make a few reasonable returns throughout the year and nobody cares. But when your account shows you’re constantly bringing back items that are clearly used up or damaged from normal wear, that’s when management steps in. They’ll process your final refund, then inform you that your membership is done. The return abuse issue is actually the number one reason Costco kicks people out.
Making too many returns raises red flags fast
How many returns are too many? Costco doesn’t publish an exact number, but employees say the pattern matters more than the count. Returning twenty items in a year because clothes didn’t fit or food went bad early won’t get you in trouble. Those are legitimate reasons that Costco expects and accepts. The warning signs appear when someone makes twenty returns per month instead of per year. Even then, you might be fine if everything you’re bringing back is reasonable and unused.
The real problem happens when returns become obviously unreasonable. Bringing back furniture with two years of visible wear and tear crosses the line. Returning food items that are 80% eaten repeatedly tells Costco you’re just getting free meals. The company does allow you to return food if it spoiled early or tasted wrong, but you need to bring back at least half the product. If your return history shows constant abuse of this policy, management will review your account and make a decision. They have full access to see every single thing you’ve ever returned.
Canceling your membership at the last minute backfires
Here’s a trick some people think is clever: shop at Costco for almost a full year, then cancel your membership right before renewal time to get a full refund. Technically, Costco’s satisfaction guarantee allows this. They promise that if you’re not happy with your membership at any point, you can cancel and get your money back. Sounds like a loophole, doesn’t it? Shop for free by canceling every year, then sign up again the next day with a new membership.
Costco isn’t stupid though. They track when people cancel and why. If you cancel right before your renewal date after shopping there all year, they know exactly what you’re doing. While they’ll give you the refund as promised, don’t expect them to let you sign up again immediately. Most people who pull this stunt face a mandatory waiting period before Costco will accept them as members again. Some folks report waiting periods of several months or even a full year. That’s a long time to go without access to cheap gas, affordable groceries, and those amazing rotisserie chickens.
Being rude to workers gets you kicked out permanently
Costco employees deal with thousands of customers every week, and most interactions go smoothly. But some shoppers think paying for a membership gives them the right to treat workers badly. Yelling at cashiers, using inappropriate language with stockers, or being constantly difficult at the returns desk won’t fly. Costco has a code of conduct that all members agree to follow, and basic respect for employees is a big part of that agreement.
Threatening an employee, whether physically or verbally, will get your membership revoked immediately. But you don’t need to make threats to cross the line. Being excessively rude on multiple occasions can also result in permanent removal. The company states clearly that it reserves the right to refuse or terminate any membership at its discretion. If management reviews incident reports showing you’ve created problems for staff repeatedly, they’ll decide you’re not worth keeping as a customer. No amount of money spent at Costco will save you if you can’t treat people with basic decency.
Letting friends use your card ends badly
Your Costco membership card has your photo on it for a reason. The membership belongs to you and the one additional person in your household that you designate. That’s it. Letting your friend, coworker, or neighbor borrow your card so they can shop without paying for their own membership violates the membership agreement. Costco has been cracking down on this practice harder than ever recently.
Employees now scan membership cards at checkout in many stores, and the system can flag when the person shopping doesn’t match the photo on the account. Some locations even use facial recognition technology. If Costco catches someone else using your card, both of you face consequences. The person shopping might be asked to leave, and your membership could be suspended or canceled. The new security measures aim to make sure only paying members get the benefits. Sharing might seem harmless, but it’s actually grounds for immediate termination of your membership privileges.
Using the food court without membership ends access
For years, Costco’s food court operated in a gray area. Technically you needed a membership to shop there, but enforcement was relaxed. Plenty of people without memberships would walk in, head straight to the food court, grab a pizza or hot dog, and leave. Costco mostly looked the other way because the food court prices are so low they barely make money anyway. But those days are over.
Now Costco requires an active membership to purchase anything at the food court. They’re checking cards before you can order. If you’re caught trying to use someone else’s membership or sneaking in without one, you could face being banned from the store entirely. Even if you have a membership, letting non-members use your card at the food court counts as card sharing. The policy change affects all Costco locations and isn’t just about selling more memberships. It’s about maintaining the exclusive benefits that paying members expect. If you want that $1.50 hot dog, you need to pay for your own membership now.
Costco doesn’t need a reason to cancel memberships
Here’s the part that makes some people nervous: Costco’s official policy states they can terminate any membership at their discretion without providing a specific cause. This doesn’t mean they randomly kick people out for no reason, but it does mean there’s some gray area. What one manager considers acceptable behavior might cross the line for another. Some actions that seem minor to you might look like policy violations to staff who see patterns you don’t realize exist.
The good news is that Costco rarely exercises this nuclear option unless someone really deserves it. They’re not looking for excuses to reduce their membership numbers. The company explains that revocations happen when there’s documented evidence of repeated policy abuse. If you shop normally, make reasonable returns when necessary, treat employees with respect, and don’t share your card, you have nothing to worry about. The discretionary clause exists to protect Costco from people who find creative new ways to abuse the system that aren’t specifically listed in the rules.
Electronics returns have different rules that matter
While most Costco items can be returned anytime, electronics work differently. You get 90 days to return computers, tablets, phones, cameras, and similar gadgets. After that window closes, you’re stuck with what you bought. This policy exists because some people were buying expensive electronics, using them for months, then returning them to upgrade to newer models. Costco caught on and established the time limit.
Trying to return electronics outside the 90-day window, especially repeatedly, can trigger a membership review. If you bought a laptop, used it for four months, then showed up demanding a refund, Costco will refuse. Push the issue aggressively or try this multiple times, and management might decide you’re intentionally abusing the policy. The same goes for trying to return electronics that are clearly damaged from misuse while claiming they were defective. Costco can usually tell the difference between a manufacturing defect and damage from dropping something. Making fraudulent return claims about electronics is a fast track to losing your membership entirely.
What actually happens when Costco cancels your membership
If Costco decides to revoke your membership, the process is pretty straightforward but permanent. A manager will typically call you to a service desk or contact you by phone or mail. They’ll explain that your membership is being terminated and process a refund for any remaining time on your annual fee. If you’re in the middle of a return when this happens, they’ll usually complete that final transaction before canceling your card.
Once your membership is revoked, getting it back is extremely difficult. Costco maintains records of canceled memberships, and those flags stay in their system. You can’t just sign up again with a different email address or at a different location. Your name and identifying information are marked in the database. Some people report being permanently banned with no option to ever rejoin, especially in cases involving threatening behavior or fraud. For return abuse cases, you might be able to reapply after several years, but there’s no guarantee Costco will accept you. Losing your membership means losing access to all those savings, and there’s no similar store that offers quite the same combination of bulk prices and quality products.
The bottom line is pretty simple: treat your Costco membership like the valuable thing it is. Make returns only when you genuinely need to, be reasonable about what you bring back, and treat the employees like human beings. Don’t try to game the system by sharing your card or canceling strategically for refunds. Costco built its business on trust between the company and its members, and they expect that trust to go both ways. As long as you shop like a normal person and follow the basic rules, your membership will last as long as you want it to. But push things too far, and you’ll find yourself on the outside looking in at those amazing deals you can no longer access.
