The Most Common Reason Costco Revokes Memberships

A Costco membership card is more than just a shopping pass — it's a coveted ticket to one of retail's best bargain chains. With prices starting at $65 annually, a Costco membership doesn't just work in the U.S. — it grants you worldwide access to all the perks of this bulk-buy haven, from its famous signature food court hot dogs to exclusive savings on groceries, electronics, and travel, to exceptionally generous price tag discounts. But while Costco memberships come with many benefits, they are not unconditional — and a membership can be revoked as quickly as it was issued. One of the most common reasons for membership revocation? Taking advantage of Costco's lenient (and easy) grocery store returns policy.

Costco's return policy is unique among retailers, and it takes its guarantee of 100% satisfaction seriously. Excluding certain items, such as electronics (which have a 90-day return window), Costco has no time limit on when an item can be brought back. Thanks to membership cards tracking purchases, you don't even need to provide a receipt. While this customer-friendly approach has earned Costco praise for its flexibility and trust-based system, it has also opened the door to abuse. Some shoppers have pushed the limits of Costco's generosity too far, repeatedly returning questionable items — and, as a result, have had their memberships revoked for violating policy expectations.

According to the Member Privileges and Conditions section on Costco's website, the company reserves the right to terminate any membership at its discretion and without cause. Although membership revocation is rare, it is not unheard of. For example, one Costco employee claimed that customers had returned mattresses "after using them 10 years" and that one member returned an empty wine bottle that allegedly gave her a headache. "If you make a ridiculous return that is [a] clear abuse of policy[,] we will happily refund you and then revoke your membership," they concluded (per Reddit).

Costco does not publicly define what qualifies as abuse, leaving it a grey area. Ultimately, the decision lies with staff and management, who can access a customer's full return history via their membership card. A few returns here and there over the years are unlikely to draw much attention, but when a member has a long history of extensive returns, it raises eyebrows. Costco is unlikely to cancel a membership without strong, documented evidence that a customer is repeatedly exploiting a system built on mutual trust. To be on the safe side, it is best to return items only when truly necessary — otherwise, you risk losing access to one of retail's most valuable and coveted memberships.