CONFUSION is swirling over Costco’s rules on how non-members can use the warehouse club’s gift cards.
The debate started after a shopper claimed their parents were stopped at the register while trying to pay beyond the value of a $25 Costco Shop Card.
Costco shoppers are confused after reports surfaced that non-members using gift cards (stock)[/caption]
Costco has also been trialing new tech changes (stock)[/caption]
The incident unfolded at a store in the US, sparking a flood of frustrated responses online.
Posting to Reddit, the customer explained: “My senior parents received a $25 gift card as a non-member. Their total was more than $25, and the cashier told them that with a gift card, they can only purchase up to the limit of the gift card.”
They asked other shoppers if this was a recent change or if the cashier was wrong.
Replies quickly piled up, with some saying they had experienced the same issue, while others insisted it depended on the store.
One Reddit user shared: “I think it probably varies by warehouse manager. My first location had this exact policy. Second location allowed you to use cash only to make up for the rest, no cards. Third location allows use of a credit or debit.”
Another added: “The rules vary from warehouse to warehouse unfortunately.”
A third commenter said: “Hm around me I’m pretty sure it’s always been like this. Or else people would be taking advantage and getting $10 gift card and then going wild at Costco and spending over the $10 and getting away with not having a membership.”
The confusion persists despite Costco’s own written guidelines appearing clear.
The retailer’s Front End Operations Manual from January states non-members are allowed to shop with Shop Cards.
It explains that non-members must use the gift card as the first form of payment, then cover the balance with cash, debit, or credit.
Checks are not accepted, and non-members cannot reload or purchase additional Shop Cards.
If there’s money left on the card, the balance is returned. If not, the card is tossed by the cashier.
The manual also notes that managers are given leeway on how these rules are enforced.
That flexibility has created what shoppers are now calling an “ever-changing policy” between warehouses.
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Some customers argue the inconsistency risks turning people away from using Shop Cards altogether.
Costco’s own website states that non-members can shop with a Shop Card and use another payment method to cover the remaining balance.
The warehouse club has over 620 stores nationwide and requires most people to hold a membership to shop inside.
Members can choose between two tiers – the $65 Gold Star or the $130 Executive membership.
The higher tier offers perks like a 2% annual reward and discounts on Costco Services.
But not all recent policy shifts have been popular.
Earlier this summer, Costco rolled out new early shopping hours available only to Executive members.
That change, enforced from June 30, locked Gold Star members out of the warehouse between 9 am and 10 am on weekdays and 9 am to 9:30 am on Saturdays.
After initial backlash, some stores allowed a grace period until September 1, but those exceptions have now ended.
“Executive Members are our most loyal members, and we want to reward them for their commitment to Costco,” an internal memo said.
Critics slammed the decision online, accusing the chain of “punishing” lower-tier shoppers.
Costco has also been trialing new tech changes, including a “scan and go” checkout system similar to Sam’s Club.
The service allows customers to scan products on their phones and pay without lining up at the register.
CEO Ron Vachris recently told investors that early trials had been “extremely successful.”
But the Shop Card debate is the latest reminder that policy changes – or inconsistent enforcement – are keeping shoppers guessing.
