Costco comments and questions

[Chuckanut]

Reports are coming in that automated card scanning machines have been seen at the Costco warehouse located near the company headquarters in Issaquah, WA.

Apparently, the top brass shop there are are concerned about the number of people using somebody’ else’s card and the amount of merchandise being stolen by people who sneak in on another person’s card and then walk out with products stuffed in their pockets, purses, etc. Testing the system near headquarters lets the big shot see first hand how things are working.

Also they noticed that people using another person’s card slow down the checkout process when they get called on it by the checkout staff. Apparently, there are no exceptions to the membership rules other than those required by state laws (access to the pharmacy, for example).

 

[pacergal]

How does this work?
Does it check the name on the card vs the name on the debit/credit? Someone could side step by using cash.
Or is it face recognition when you enter?

 

[braumeister]

Much of the time when I approach a checkout station (self or attended), someone will want to see the picture on my card to be sure it's me.

 

[Aerides]

How does this work?
Does it check the name on the card vs the name on the debit/credit? Someone could side step by using cash.
Or is it face recognition when you enter?

Currently, they check that you have a card when you enter (but little else, just kinda wave it).

But at check out, particularly at self-check-out, they have been checking ID's lately when folks are in line. Your ID is on the back of the member card, and the back of the costco credit card. I don't even know if you can use cash at costco I've never tried. So apparently there has been a lot more "here take my card" - ala Netflix password sharing, than they'd like.

I don't know if I buy the theft angle - multiple reports from top retailers that made headlines this summer were proven to be false. And given how Costco already polices the departure process, you'd have to be pretty brazen to pick Costco to steal from vs. any other place.

 

[38Chevy454]

Much of the time when I approach a checkout station (self or attended), someone will want to see the picture on my card to be sure it's me.

That's how it is done at the Costco places I have been at. Person at checkout looks at your card with picture and checks if it looks like you.

 

[Midpack]

It's OK by me, but I have never been asked for ID at any of the Costco's I've shopped at (yet). I can't think of another way of preventing non-members from using a members card to shop at Costco.

It's very rare I use the checkout lines, I've been doing self checkout as long as they've been an option. Scan my member card, and then use my Costco Visa or Apple Pay to transact.

They barely look at my member card at the front entrance IME.

 

[pacergal]

We have used cash at Costco a few times.
I know Costco gets a fairly large portion in profit from membership money, it must be enough for them to want to add this additional machinery to keep non members out.

 

[Midpack]

We have used cash at Costco a few times.
I know Costco gets a fairly large portion in profit from membership money, it must be enough for them to want to add this additional machinery to [-]keep non members out[/-] encourage non members to join.

FIFY

I wonder if there will be repercussions for members who loan out their cards? There should be IMO.

 

[Fermion]

Currently, they check that you have a card when you enter (but little else, just kinda wave it).

But at check out, particularly at self-check-out, they have been checking ID's lately when folks are in line. Your ID is on the back of the member card, and the back of the costco credit card. I don't even know if you can use cash at costco I've never tried. So apparently there has been a lot more "here take my card" - ala Netflix password sharing, than they'd like.

I don't know if I buy the theft angle - multiple reports from top retailers that made headlines this summer were proven to be false. And given how Costco already polices the departure process, you'd have to be pretty brazen to pick Costco to steal from vs. any other place.

Not all false.

 

[Chuckanut]

Cash makes no difference. You still have to show your card when paying for the goodies in the cart.

 

[easysurfer]

Sounds like the system being tested is perhaps some kind of face recognition that matches the picture on Costco card with person?

When I last shopped at Costco when checking out they did ask to see my ID along with the Costco card. But I really didn't think much of it since it was me and not using somebody else's card .

 

[braumeister]

Sounds like the system being tested in perhaps some kind of face recognition that matches the picture on Costco card with person?

Could be. That works extremely well at the airport.

 

[Fermion]

I think people (myself included) want to shop at a store which has some degree of policing of the clientele, even if those people would not publicly admit it. By implementing stronger protections against fraudulent members (or non members) the result could reflect in sustained sales to those of us who follow the rules.

I guess it is similar to a HOA.

 

[Sunset]

Our Costco checks membership when checking out, just wave a card when entering is good enough.

I wonder, how much the theft issue is from employees in stores, as they have the best opportunity and ability to steal.

I find it hard to think customers at Costco are stealing due to the exit process.

Could people be using old expired membership cards to enter, or just making fake ones as maybe Costco uses a simple membership numbering system. Either way doesn't make stealing easy.

 

[Jerry1]

Currently, they check that you have a card when you enter (but little else, just kinda wave it).

But at check out, particularly at self-check-out, they have been checking ID's lately when folks are in line.

This is my experience at our Costco.

 

[jollystomper]

Ours as well. They check while you are in line, before getting to the checkout.

Entering, you just wave the card. But I have seen them not let folks in who are trying to use the line "my <pick a relation or friend> will be here soon, they are getting a cart, can I go in?"

Once I observed someone with a cart hanging out by the side of the self-checkout. As soon as one person passed the ID test and went over to a self-checkout spot, they quickly moved their cart to be with them. But, the workers caught that action. By the time I finished checking out the discussion was still going on, apparently the two were in cahoots trying to get stuff but one was not a member.

 

[Mark1]

We are finally getting a Costco in Junction later this year. It will be interesting to see what kind of the latest features we might get.

As a side note our local Sam's only recently started making you show your membership card at entry (actually right before Xmas ). We always self-check out and I can't remember anyone ever looking at my card for photo matching during checkout. I guess that will be next. Like we use to say at Mega-corp, "we want to be the leader of the followers".

 

[athena53]

I wonder, how much the theft issue is from employees in stores, as they have the best opportunity and ability to steal.

I find it hard to think customers at Costco are stealing due to the exit process.

Many retail analysts have pointed out that being a paid member gives people more of a sense of "ownership" and they're less likely to steal from Costco. As for employees, my feeling is that they're treated far better than most retail employees so they want to stay there. I know I've seen the same faces year after year at my local Costco.

I agree that I WANT them to police people who are trying to use someone else's account.

 

[bobbyr]

This is my experience at our Costco.

Likewise.

 

[Sunset]

Many retail analysts have pointed out that being a paid member gives people more of a sense of "ownership" and they're less likely to steal from Costco. As for employees, my feeling is that they're treated far better than most retail employees so they want to stay there. I know I've seen the same faces year after year at my local Costco.

I agree that I WANT them to police people who are trying to use someone else's account.

I'm sure most are totally honest, but just like the stories of book-keepers at a company and it's found out later, one person can abuse trust and steal a huge amount.

I do think a large part of the motivation for checking ID, is to restrict it to paying people and since I pay, I agree with it being done

 

[rodi]

At our costco they scan your card at checkout. Even at the food court. Even in the gas line. Inside, the cashier checks the picture if they don't recognize you. (I know my checkers who've all been there more than 20 years.... my store is the original price club store and many of the employees are holdovers from pre-merger.)

I've let my kids fill up their cars with my membership card since... but they also used my credit card - so there was no name match check.

I gave my 21 and 23 year old a household membership ($60) to share for Christmas. This way they can shop for food/gas when they are away at college.

 

[Eucerin]

Originally Posted by Aerides View Post
Currently, they check that you have a card when you enter (but little else, just kinda wave it).

But at check out, particularly at self-check-out, they have been checking ID's lately when folks are in line.

Same as us here.
I have been thinking when is Costco going to offer senior discount

 

[MichaelB]

At my local Costco they occasionally check the ID on the card at checkout. I understand there was a national effort to do that last year. Costco makes most of its profit from membership fees, so policing it makes sense.

Costco does not have a “shrinkage” problem. Shrinkage is the term used by retail business to describe the total loss by administrative errors, operational loss, vendor fraud, employee theft, and customer shoplifting.

This was confirmed late last year by the CFO during an earnings call. https://finance.yahoo.com/news/cost...stco's robust defenses,as reported by the NRF.

But Costco (NYSE:COST) isn’t losing as much as its peers. “Thankfully, it's not a big issue for us,” chief financial officer Richard Galanti reportedly told investors last month during the company’s earnings call.

 

[RunningBum]

Many ski resorts now use RFID cards at the base lifts. When it reads your card your picture shows up, so a liftie using an iPad can see if your pic probably looks like you. In ski mask and goggles it can be hard to tell but they should be able to tell a kid from an older person, or guy with a beard from a woman. Costco could do the same thing at the store entry.

 

[OldShooter]

Facial recognition is almost at the point where cards will no longer be required. Ref China. Ref airport security.