3 Reasons Costco Might Revoke Your Membership

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If you push your luck at Costco, you risk losing your membership. Read on to learn more. [[{“value”:”

A Gold Star Costco membership costs $65 a year thanks to a recent fee hike on Sept. 1, while an Executive membership costs $130 a year. For some people, these fees aren’t worth paying. But if you love shopping at Costco and go there often, then it could be well worth the $65 or $130 to give yourself access to the store. What you spend on a membership, you might more than make up for in the form of money saved throughout the year.

But if you’re not careful, you could put yourself at risk of losing your Costco membership. Here are a few actions that might cause the warehouse club giant to take your membership away.

1. Abusing the return policy

Generally speaking, Costco allows members to return any item at any time for a full refund. There are limited exceptions, such as electronics, which only give you a 90-day return window, or gift cards, which cannot be returned at all.

But for the most part, you’re free to take back items you don’t want or need. And you can even take back fresh food due to quality issues, or on the basis of not liking the taste.

However, if you abuse Costco’s return policy, then the warehouse club giant may decide it no longer wants you shopping there.

Now, the tricky thing is that there’s no specific number of returns that could lead to that situation. It would almost be easier if Costco were to say “If you return more than 10 items per month, your membership is at risk.” Instead, it’s largely at Costco’s discretion. Because of this, you’ll want to make sure your returns are reasonable.

If you return a rug that’s worn and stained 12 months after buying it, Costco isn’t going to look kindly upon that. And if you return a bakery purchase on the basis of its taste being “off” but you only bring back one-fourth of that cake, you may not only be denied a refund, but you might get your account flagged. So while you generally don’t have to stress about returning things to Costco, you should be a bit careful and make sure you’re not taking advantage.

2. Abusing the cancellation policy

Costco guarantees complete satisfaction with its memberships. As such, you can cancel at any time during the year for a full refund. But if you wait until you’ve had a membership for 364 consecutive days and you cancel right before the one-year mark, you can bet that Costco won’t let you renew your membership a day or a week later.

On the other hand, say you join Costco in February but decide in March that you’re not going there often enough. If you cancel but then decide to try it again the following February, you probably won’t have a problem.

3. Abusing employees

It should go without saying that treating employees poorly is a pretty terrible thing to do — at Costco and elsewhere. But if you abuse the store’s employees verbally or physically, you’re basically asking to have your membership taken away.

Costco makes a point to offer great customer service. So if you’re unhappy about a given situation, it could help to take some time to cool off and come back to talk to a representative once you’ve calmed down.

Costco isn’t in the habit of revoking memberships for no good reason. It relies on its membership fee revenue to stay profitable and offer up great deals. But if you take advantage of the store’s return or cancellation policy, and you treat Costco’s employees poorly, then you could end up banned from Costco — either for a period of time or, in an extreme situation, potentially for life.

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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.Maurie Backman 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.

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