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Costco to start scanning membership cards at the entrance of all its U.S. stores
Costco Wholesale is installing membership scanners at the entrances of all of its U.S. locations to discourage non-members from shopping at the stores.
Soon, instead of flashing their cards at employees, Costco members will be required to scan them as they are entering, the retailer said.
“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. Once deployed, prior to entering, all members must scan their physical or digital membership card,” the retailer stated on its customer service page.
Guests must also be accompanied by a valid member in order to enter a store, Costco added.
The discount retailer began testing the technology earlier this year, with Chief Financial Officer Richard Galanti relaying that more people had been sharing memberships since the pandemic in 2020.
The scanners also spare Costco employees from having to ask shoppers for membership cards at registers and self-checkout, speeding up the process of entering and checking out, the Galanti told CNN.
Discounted dogs for members only
Costco earlier in the year cracked down on who uses its food court to ensure that only members can capitalize on its famous $1.50 wiener-and-soda deal.
The retailer recently began asking for shoppers’ membership cards, along with a photo ID, at self-checkout registers, a policy the company also applies at regular checkout lanes.
“We don’t feel it’s right that non-members receive the same benefits and pricing as our members,” Costco stated at the time.
Costco said last month it was hiking its basic membership fee for the first time since 2017, increasing the annual charge to $65 from $60. The roughly 8% cost increase takes effect on September 1, the warehouse club announced. The cost of a premium membership is rising to $130 from $120. Costco also said the maximum annual 2% reward for its executive membership will rise to $1,250 from $1,000.
The pricing change affects about 52 million memberships. Costco operates 882 warehouses, including 609 in the United States and Puerto Rico.
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Credit card debt has been surging nationwide — and with rates where they are, it’s no wonder why. According to the Federal Reserve, the average credit card rate sits at over 23% right now — up from just 14% just a couple of years ago and the highest rate on record.
Today’s sky-high credit card rates have made it incredibly hard for consumers to get out of debt. In fact, delinquencies on credit cards have more than doubled on credit cards since 2021 alone.
But credit card rates are variable, so they — and your monthly payment — can change fast. Will rates on credit cards climb in the new year, though?
Find out how to get rid of your existing credit card debt here.
Will credit card rates climb in 2025? Experts weigh in
Want to know where your rates may be headed in the next year? Here’s what experts had to say.
Credit card rates may remain the same
The Federal Reserve reduced its federal funds rate at its last three meetings — a move that typically results in interest rate dips on variable-rate products like credit cards and HELOCs.
But future rate cuts aren’t certain — especially with recent reports showing inflation ticking back up.
“As the Federal Reserve digests the recent election results and economic reports on inflation, housing, and employment, it appears they may be in a rate pause for 2025,” says Jason Fannon, senior partner at Cornerstone Financial Services. “This neutral stance would keep the average credit card interest rate near 21% annually.”
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…or fall slightly
If the Fed does opt to cut rates, credit card rates could fall too — but likely not significantly.
“I don’t expect any significant change to credit card interest rates,” Fannon says. “If the Fed does cut or raise the Fed Funds rate, it would have to be a sizable move in either direction to change the average credit card interest rate.”
Could credit card rates fall below the 20% mark if the Fed reduces its rate? It’s doubtful, pros say.
“It’s hard to predict beyond 12 months from now but if consumers want to see below-20% rates, then we need a variety of things to align,” says Eric Elkins, founder and CEO of Double E Financial Solutions. “We need inflation to remain below 3% for at least 15 months, we need to see average wage increases above 3%, we probably would need government regulations passed to limit the APR on the credit card institutions, and we’d need the Fed to continue reducing interest rates for borrowers. Lots of things need to occur.”
Other factors that impact your credit card rates
It’s not just the Fed and other economic conditions that weigh on credit card rates. Your credit score can impact what rate you get, too. So, if your score is on the lower end, improving it could help you snag a lower rate on a new card, which you could then transfer your existing credit card balance to.
“Having a good to excellent credit score could make you attractive to other companies,” says Troy Young, founder and president of Destiny Financial Group. “With a high score, you may be able to sell your debt to another company for a lower rate — in other words, refinance it by doing a balance transfer.”
The bottom line
If credit card debt is weighing you down, consider your debt relief options. There are debt consolidation, debt settlement, debt forgiveness and many other strategies that can help you tackle that debt more efficiently. Here are the best debt relief companies to consider if you need professional debt relief guidance.
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