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A Costco membership can be a great way to keep more money in your bank account. Kirkland brand products tend to be affordable and awesome, and Costco generally also offers great deals on a huge variety of name-brand products.
If you’ve become a Costco member, hopefully, you’re making the most of your Costco membership. And, the last thing you want to do is end up with it being canceled. Unfortunately, there are certain behaviors that could lead to exactly that.
In fact, here are four reasons why Costco might decide it no longer wants you as a member.
1. Abusing the generous return policy
Costco allows you to return just about anything at just about any time. There are some limited exceptions to this extremely generous rule for things like electronics and appliances. However, just because you have flexible options for returns doesn’t mean it’s a free for all.
If you repeatedly make unreasonable returns, eventually Costco will decide they no longer want you to keep shopping there. That might include returning half-eaten food, a coat you bought and wore for three winter seasons, or a sofa you used for years.
There’s no hard-and-fast rule for how much return abuse the store will take before they rescind your membership. It’s typically at the discretion of the store manager. So try to avoid returns that will raise eyebrows if you want to make sure your membership remains active.
2. Scamming the system to skip out on membership fees
Costco allows you to cancel your membership at any time during the year and still get a full refund. However, you don’t want to abuse this privilege either. If you cancel close to the end of the year and then renew shortly after, this could raise a red flag in the system. So much so that Costco could decide not to let you continue reaping the benefits of membership every year without paying for it.
You might get away with this once — or even a few times — if no one notices immediately. But, eventually, the cancel/sign-up cycle will get noticed and will likely lead to an end to your time at Costco stores.
3. Refusing to have your receipt checked
Costco requires you to have your receipt checked at the door upon exiting. Refusing to cooperate or trying to go around the receipt checker is a violation of the store’s policies. You could find yourself with a canceled membership for this behavior — especially if you do it repeatedly.
4. Theft of goods
Finally, theft is a violation of Costco’s terms of service. If you’re caught stealing from the store, it’s very likely your membership is going to be canceled pretty quickly.
Fortunately, all of these mistakes are easy to avoid. Don’t return things unless you genuinely have a problem with the product, don’t try to scam the system to avoid membership fees, and present your receipt when you leave. Whether you use your credit cards or pay for merchandise with cash, don’t steal from the store. That way, you can keep enjoying all that Costco has to offer for a long time to come.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
