These 3 Mistakes Could Get You Banned From Costco

There’s a reason so many people are willing to spend money to walk through Costco’s doors. In exchange for the $65 you pay per year for a basic Gold Star membership or the $130 you pay for an Executive membership, you get to save money on groceries and household essentials. And in many cases, the savings you enjoy on those items will far surpass the cost of your annual membership.

But you should know that Costco has the right to revoke any membership at any time. If you make any of these moves, you risk getting yourself banned from the store.

1. Canceling your membership close to its renewal date

Costco guarantees satisfaction with its memberships and will let you cancel at any time during the year for a refund. But if you cancel close to your membership renewal date so you’re effectively able to shop at Costco for a year for free, then you probably won’t be allowed to renew your membership anytime soon after that. 

At that point, you risk missing out on a world of savings. If you’re getting close to the one-year mark and realize you haven’t been shopping at Costco as often as you used to, don’t just cancel. Instead, think about the different ways you can maximize the benefits of shopping at Costco. 

You may not have as much of a need for bulk groceries if your children have recently moved out of the house, for example. But in that case, you might have more freedom to travel, so perhaps you can take advantage of Costco’s low-cost vacation packages.

You should also remember that Costco sells a host of items, from apparel to electronics to home appliances. And if you use the right credit card at Costco, you can pile onto your savings. Click here for a list of the best credit cards for Costco.

2. Returning things that are clearly no longer in sellable condition

Costco’s return policy is more than reasonable. You can pretty much bring back any item at any time for any reason with a few exceptions (like electronics, where your return window is limited to 90 days). But if you abuse Costco’s return policy by bringing back items that are clearly no longer in sellable condition, you might get yourself banned from the store.

Say you buy a jacket for your child and they wear it once before claiming it’s uncomfortable. Even with the tags already removed, this may be a reasonable return if the jacket is in like-new condition when you bring it back.

On the other hand, say you buy a rug that your children and pets stomp on all year long. If you then, after 12 months, attempt to return it all tattered and torn, Costco may not take kindly to that.

3. Making an unreasonable number of returns

There’s no specific number of Costco returns that will result in your membership being revoked. But if your returns get excessive, you run the risk of losing your Costco access.

What’s excessive? Making two or three returns per month probably won’t do it, provided those returns are reasonable as per the point above. But making 12 returns per month might land you a spot on Costco’s blacklist, so be careful. 

Of course, if you’re worried because you’ve recently made a larger number of returns than usual, you could always head over to customer service at your local store and ask if it’s a problem. A Costco employee may reassure you that your returns are still within a reasonable limit. And if not, you’ll at least have a heads-up to scale back on returns for a few months to avoid getting yourself flagged.

Losing access to Costco could deal your finances a major blow. Avoid these mistakes so that doesn’t happen.