Almost every retailer offers a loyalty program to its customers. This allows them to keep you loyal and spend with them so that you build up your rewards for some benefit later.
Costco is a very well-known retailer that provides bulk purchasing from their massive warehouses, so many potential customers want to know if they can get rewards of some kind from Costco.
Does Costco Have A Rewards Program?
No, Costco does not offer rewards programs, but its memberships provide many benefits that make the cost of membership worthwhile. These include lower prices on bulk products as well as cashback rewards.
You have two personal and two business membership options with varying prices and benefits available.
Since its inception, the membership program has been a core part of Costco, and you must have a membership to shop there.
The requirements for membership are that you have a valid government-issued ID from the country the store is located. However, your membership is valid in any country.
Business membership requires additional verification, including a business ID and potentially resale, alcohol, and tobacco licenses.
Applications are simple and can be done online or at the customer service section of the store, which is located near the checkout.
However, even if you make an application online, you still need to go to customer service to pick up your card and show your valid ID.
Once you have your membership card, you can start using it instantly, but with any new service, you need to understand how it works.
How Costco Membership Works
The Costco membership is straightforward. The primary benefit is that you can enter the store and purchase bulk products for excellent prices.
So there is nothing you need to do, nothing special you need to produce at checkout or tell anybody. The membership simply works for you.
Using the membership is simple, but because you’re paying for this, you should understand all of the benefits you get and how to use them. Also, because there are different levels, you should know if you’re missing out on anything.
Benefits of Costco’s Membership
Instead of offering points or rewards, the most significant benefit of Costco membership is the ability to shop there.
Without a membership, you are not allowed to shop there, and you can’t use somebody else’s card because the owner’s photo is included and checked on the card.
- Bulk purchasing of products. This even includes just larger amounts in a single package.
- Access to cheaper store-owned Kirkland products. These can be half the price or less than name-brand products.
- Cheap medical insurance
- Cheap medication through the pharmacy
- Free health checkup through the pharmacy
- Cheap prescription glasses in-store
- Discount vouchers for movies, restaurants, and other retailers.
- Cheap printer ink refills
Knowing you get these additional benefits, you need to know exactly how much Costco membership is and the core benefits to determine if it’s all worth the cost and effort to you.
Costco Membership Comparison
Costco membership has two personal and two business options for you to choose from. Each has different benefits, prices, and even requirements to get access to them.
Costco Gold Star vs Executive
| Membership Level | Costco Gold Star | Costco Executive |
| Cost | $60 per year | $120 per year |
| Access to all locations worldwide. | Yes | Yes |
| Two memberships cards for the same household. | Yes | Yes |
| 2% cashback reward on most purchases. | No | Yes |
| Additional offers and discounts. | No | Yes |
| Receive Costco magazine and discounts by mail. | No | Yes |
Costco Business vs Executive
| Membership Level | Costco Business | Costco Executive |
| Cost | $60 per year | $120 per year |
| Access to all locations worldwide. | Yes | Yes |
| Shop costcobusinesscentre.ca, which has specific business products. | Yes | Yes |
| Two memberships for the same household. | Yes | Yes |
| 2% cashback reward on most purchases. | No | Yes |
| Additional offers and discounts. | No | Yes |
| Receive Costco magazine and discounts by mail | Yes | Yes |
| Additional six people from your business added to the membership. | Yes | Yes |
| Resale purchasing | Yes | Yes |
Costco Membership Cost
Costco membership is a minimum of $60 every year, so you need to determine if you can get that $60 back and more through your membership. This includes all of the benefits listed above, as well as the core part of Costco, which is groceries. Are you buying enough groceries to make it worthwhile?
Some examples of this include opting for the Kirkland brand products over name brands which can save you a lot of money, especially if you’re buying a lot of these items. The items will either be cheaper or have more in them, especially when compared to other grocery stores.
How to Redeem Costco Rewards
Costco rewards and benefits can be used in-store at any of the departments and checkout. You don’t need to do anything to use your membership once it’s been activated. Your discounts on products and services are automatic; however, be aware that they change, so don’t assume discounts are always the same.
Customers that have seen the complete benefits package will know that there is a 2% cashback reward available. So customers will be eager to get details on that.
Costo Membership Annual Rewards
As part of your Costco membership, you may be eligible for a 2% cashback reward on purchases you’ve made throughout the year. Every February, if you are a valid member, you will receive a Costco “check,” which you can use for in-store purchases or cash out into actual money.
The check can be used at checkout or cashed out at the customer service desk. You will need your Costco ID and a valid government-issued ID to cash the check into money.
Bottom Line
Costco provides a paid membership rewards program, which is a requirement to even step inside the store. The primary benefit of membership is low-cost groceries, including bulk items that you simply can’t get at other stores.
The cost saving isn’t always extreme, but it adds up the more you shop there, so big families and high-use customers will absolutely benefit.
You also receive many other additional benefits from instore departments, like the pharmacy and optometry departments.
As well as having access to almost everything you could need that a smaller store won’t have, or that larger stores just don’t carry in the size you want.
If you pick the high-level membership, you will also receive 2% cashback on your purchases throughout the year which can easily surpass the membership fee, so it may well be worth the $120 for you to upgrade.
