What Is a Costco Shop Card?

It might have raised its membership fees this year, but Costco is always presenting the public with compelling reasons to continue buying in. Beyond the everyday wholesale prices, membership also entitles cardholders to the Costco Next program, which lets them shop at a discount directly through suppliers. They can also enjoy a really cheap hot-dog-and-soda combo before or after their shopping trip. But in fact, the joys of Costco might not be entirely limited to card-carrying members. Meet the Costco Shop Card.

What is the Costco Shop Card?

The card, also known as a Costco Cash Card, is an alternative to paying with cash or a credit card at Costco. Like a gift card, it contains a stored monetary value that never expires, and value can be reloaded onto the card indefinitely.

The card can be used as a form of payment at any Costco location in the United States, Canada, and Puerto Rico, as well as online at Costco.com and Costco.ca. Only members may purchase this card, but — and this is very important — it can be used by members and non-members alike, both in-store and online. This allows anyone to shop at Costco without paying annual membership fees, provided they have a connection to someone who can buy them this card. 

In addition to the Costco Shop Card, there’s also a Digital Shop Card, sent to the recipient via email. Shoppers can use it exactly as they would a physical card, either by redeeming it via smartphone or by printing it out and bringing it to the store. 

How to use the Costco Shop Card

The Shop Card can be used like cash to purchase products from Costco, and like a gift card, you don’t have to use the entire balance in one go; you can spend a little and then check your remaining balance online. 

Some Reddit users say that the store only honors the Shop Card up to its value limit, meaning a non-member can’t use a credit card on the remaining balance. Some Costco locations also make non-members present the Shop Card to the customer service desk before shopping, and occasionally, users report that the cashier is unaware of Shop Card protocol, which requires entering a generic membership number at checkout. But for many shoppers, these minor hurdles are worth it. 

For those non-members who are enamored by their visit to the store, the cards can also be put toward a yearly membership. They cannot, however, be used to shop on Costco Next. 

While the Costco Shop Card is not refundable and generally not redeemable for cash, its balance can be converted to cash in certain states, under certain conditions. Here’s a list of states that require this redemption by law:

• Balance less than $10: CA
• Balance less than $5: CO, HI, ME, MA, MT, NJ, OR, WA
• Balance less than $3: CT
• Balance less than $2.50: TX
• Balance less than $1: RI, VT

And if you’re gifting the Costco Shop Card this holiday season, be warned: the store isn’t responsible for replacing lost or stolen cards. If you plan to give it to someone forgetful, maybe send the digital version, as the emailed card can simply be reprinted.