Costco Wholesale (COST-Q) Quote - Press Release (2024)

One of the perks of shopping at Costco is the store's generous return policy. With limited exceptions, you can return any item at any time for a full refund. And you don't even need to keep your receipt. Costco can look up your purchases based on your membership ID number and issue a refund based on how you paid -- either cash in your hand or money back on your credit card.

But you may have heard a rumor that making multiple Costco returns will cause your membership to get revoked. And for the most part, that's not something to worry about.

You have to go to a pretty big extreme to be denied a membership based on returns. But here are three scenarios where you do risk losing your membership.

1. Making an excessive number of unreasonable returns

You're not going to lose your Costco membership if you return 20 items in a single year that are in perfectly acceptable condition. For example, if you brought home a bunch of shorts, shirts, or jackets for your kids that didn't fit right, don't stress about bringing those items back with the tags on -- even months later.

Where you might run into trouble is when your returns become excessive. For example, making 20 returns per month, not per year, might get you on Costco's radar. And even then, you're probably still safe as long as your returns are reasonable in nature.

What's considered unreasonable? You may have heard the viral story of the woman who returned a couch to Costco after two years of using it. Returning a piece of furniture 26 months later with obvious signs of wear and tear may not sit well with Costco. But returning a food processor that never came out of its box six months after buying it isn't nearly the same thing.

You should also know that Costco does allow you to return partially eaten food if there's a good reason, like early spoilage or an issue with the taste. But in that case, you need to bring back at least 50% of the item in question. If you repeatedly try getting a refund for food that's 80% eaten, Costco may decide you're no longer welcome in its stores.

2. Abusing the option to cancel your membership for a refund

Costco doesn't just stand behind its products. It also guarantees your satisfaction on its memberships. If you end up dissatisfied, you can cancel at any time for a full refund.

This technically means that you can shop at Costco for 364 days, cancel right ahead of the one-year mark, and get your money back. But in that case, don't expect Costco to allow you to sign up again.

You'll generally be subject to a waiting period if you're coming right off of a cancellation of that nature. That's not quite the same thing as having your membership revoked, but it leaves you in the same boat.

3. Being rude to or threatening staff members

There's a code of conduct Costco customers are expected to abide by. If you're excessively rude to a staff member or use inappropriate language when speaking to one, you could have your membership taken away.

The same holds true if you threaten a store member in any way, either physically or verbally. (In that scenario, there may be legal repercussions in addition to compromising your Costco access.)

Don't push the limits

Here's Costco's official stance on revoking memberships: "Costco reserves the right to refuse membership to any applicant, and membership may be terminated at Costco's discretion and without cause." What this means is there's some gray area as to what constitutes cause for having a membership revoked.

But even with that said, if you don't abuse Costco's return policy or its membership policy, and if you're not rude or inappropriate, then you shouldn't run into any problems. So don't sweat it if you're about to make your 11th return of the year and you're bringing back a Costco ironing board six months after the fact. If that item is still in working condition, there's nothing to worry about.

In fact, the takeaway here is that if you're reasonable with Costco, it will be reasonable with you. Don't push the limits, and your membership should be yours to enjoy for as long as you want it.

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