Costco members are now paying more: Here’s why

Costco’s first membership price increase since 2017 is now in effect.

In June, Costco announced it would increase membership rates by $5 starting Sept. 1. The change meant the base membership cost would increase from $60 a year to $65. The top tier membership– the “Executive Membership”– would go from $120 a year to $130.

CNN reports annual fees have been one of the biggest profit-generating areas for Costco, helping it offset expenses in order to keep its prices down. Last year, Costco earned $4.6 billion in revenue from membership fees, an 8% increase from 2022.

The fee increases will impact around 52 million memberships, a little over half of which are Executive-level, according to the company.

More changes at Costco

Costco is cracking down on non-members using membership cards that don’t belong to them. The company has started scanning membership cards at various locations. Instead of just flashing your card to an employee as you enter warehouse stores, the retailer asked members to scan the back of their cards or their digital membership QR codes, reports KTLA. The change, which started earlier this year, has rolled out nationally.