3 Things You May Not Have Known About a Costco Executive Membership

Shopping at Costco is a great way to save money on everything from groceries to apparel to household products. And if you upgrade to an executive membership at Costco, you may find you’re able to save even more.

A Costco executive membership costs $130 a year, which is double the cost of a basic membership. In exchange, you get 2% cash back at Costco, which is a pretty sweet deal. In fact, your cash back could be enough to pay for your upgraded membership and then some.

But if you’re thinking about upgrading your membership at Costco, it’s important to know how the Executive program works. Here are a few things you may not have known about a Costco Executive membership.

1. You’re limited to a $1,250 reward each year

If you shop at Costco frequently enough, you might manage to rack up a lot of cash back from your Executive membership. But you should know that once you’ve earned $1,250, you’re done getting cash back for the year.

That said, to even get to the point of being eligible for a $1,250 cash back reward from your Executive membership, you’d need to spend $62,500 a year at Costco. That’s probably way more than you can imagine yourself spending, even if you use Costco for things like booking travel and replacing your furniture.

2. Online purchases count

Although Costco carries an impressive selection of inventory in its warehouse club stores, you might find even more items to choose from online. The good news is that online purchases are generally eligible for 2% back if you have an Executive membership, so don’t be concerned that those orders won’t count.

3. Some purchases aren’t eligible for cash back

Unfortunately, not all Costco purchases earn Executive members cash back. For instance, even though it might make sense to purchase your next car through Costco, you won’t be getting cash back (which would make it a whole lot easier to earn the maximum of $1,250!).

And although Costco has some fantastic deals on alcoholic beverages — their Kirkland wines are famously low-price and high-quality — your hooch won’t earn you cash back, either.

Certain other goods and services are excluded, too, so if the cash back is important, make sure you confirm that the purchase is eligible before you buy.

Should you get a Costco Executive membership?

A Costco Executive membership certainly isn’t right for everyone. If you don’t do a lot of shopping at Costco, then it may not be worth it to pay the extra $65 a year. But either way, read up on how the upgraded membership works and the benefits it offers before making your decision.

Remember, too, that Costco wants you to be happy with your Executive membership. If you make the upgrade and find that it isn’t worth it, you can always downgrade your membership to a basic one and ask for a refund. It’s not as though you’re stuck with the costlier membership, so it’s really a pretty risk-free proposition if you want to give it a try.