Costco Connection - Membership

Membership

Costco is only open to members and their guests, except for purchases of liquor and gasoline in some US states because of state law; and prescription drugs because of federal law. Memberships must be purchased in advance for one year. Purchases made at Costco's website do not require a membership; however, a 5% surcharge is added to purchases made by non-members. Purchases made with Costco Cash Cards also do not require a membership, and there is no surcharge. Canadian, United Kingdom and United States Costco locations only accept American Express, PIN-based debit cards (Interac in Canada), Costco credit cards, Costco Cash Cards, cash, checks, and EBT cards (food stamps). While Costco welcomes members to bring up to two guests, only the members may pay for items. American Express is the only accepted credit card (in the United States, Canada, and Japan) because they charge Costco very low interchange fees (a percentage of revenue from total sales made); as Costco's margins are low in comparison to other retailers. Costco accepts Flexible Spending Account (FSA) debit cards for qualifying purchases at the pharmacy and optical departments in the US. Costco.com accepts the American Express, Visa, MasterCard, and Discover cards. The website also accepts Bill Me Later accounts for payment.

As of November 2011, membership fees at Costco are $55 per year for a Gold Star (individual) or Business membership (older memberships are grandfathered in at $50 per year), which can be upgraded to Executive membership for an additional $55 per year. Along with the additional benefits the executive membership offers (e.g. home loans, car insurance, check printing services) Executive members also receive an annual "2% Rewards Check" of up to $750.00 from Costco on all purchases made, excluding select items such as gasoline, tobacco, stamps and in some states, alcohol.

In Canada, membership is CDN $55.00 a year for a Gold Star membership and includes a card for a spouse, or CDN $110.00 a year for an Executive membership.

In the United Kingdom, membership is restricted to certain groups only. Trade membership is available to the owners or managers of businesses for £20.00 (plus VAT). Trade members receive a complimentary spouse/partner card, and can purchase additional cards (at a cost of £12+VAT each) for employees. Qualified professionals such as solicitors, magistrates, accountants and engineers, as well as employees in certain specific sectors (such as medical services, education, local government, the civil service, airlines and banking) may apply for individual membership, which costs £25 including a spouse/partner card. A Costco card issued in another country is valid in the U.K., and as such, it would be possible for a U.K. resident to sign up elsewhere and use their card at home without meeting U.K. membership requirements.

In Australia, membership is A$55.00 a year for a business membership, or A$60.00 a year for a Gold Star membership.

In Mexico, membership is MXN $450.00 a year for a Gold Star membership, or MXN $1000.00 a year for an Executive membership. Costco is only open to members for all services and purchases. Mexican locations only accept cash and Visa Electron debit cards; purchases with MasterCard or Visa credit cards have a surcharge of approximately 4%. Purchases with the Mexican Costco credit card keep cash prices.